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Legislation Updates Impacting Students Financial Aid

With the passing of the budget reconciliation bill (H.R. 1, passed by the 119th Congress and signed into law on July 4, 2025), St. Mary’s University’s Office of Financial Assistance remains committed to providing up-to-date information on the impact on Federal Student Aid. Guidance will be shared as it becomes available. Last updated April 22, 2026.

Undergraduates ▼
graduates and Professionals ▼
ALL STUDENT BORROWERS ▼

Undergraduate Student Aid Changes

Pell Grant Eligibility

  • Students with a Student Aid Index greater than twice the maximum Pell Grant award will no longer be eligible for Pell Grants beginning July 1, 2026.

Parent PLUS Loans

Effective July 1, 2026

  • The annual borrowing limit per dependent student will be $20,000 and an aggregate $65,000 per dependent student (combined for all parents).
  • The “legacy” provision allows parents with existing Parent PLUS loans to continue borrowing under the old limits for up to three academic years or until degree completion, whichever is less, provided they meet the following:
    • Students must remain continuously enrolled in the same program of study.
      • If the student withdraws, stops enrollment or changes to a different program type, the parent may lose eligibility for legacy borrowing.

  • Parent PLUS Loan FAQs

    Existing borrowers may continue under the old limits for a limited time.

    I am currently borrowing a Parent PLUS Loan. Do the new limits apply to me?

    Combined Parent PLUS loan limits apply even if two parents apply separately.

    My parents applied to the Parent PLUS Loan separately. Do the loan limits still apply?

    Incoming undergraduates’ loan eligibility includes Direct Subsidized/Unsubsidized Loans and Parent PLUS (subject to credit). Private loans are an option if these are insufficient.

    What is included in my loan eligibility?

Graduate and Professional Student Aid Changes

Graduate PLUS Loans

  • Graduate PLUS loans will be eliminated for new borrowers beginning July 1, 2026.
  • The “legacy” provision lets currently enrolled students who borrowed Grad PLUS loans before July 1, 2026, continue borrowing for up to three additional academic years or until program completion, whichever occurs first, provided they meet the following:
    • Students must remain continuously enrolled in the same program of study.
      • If the student withdraws, stops enrollment or changes to a different program type, they may lose eligibility for legacy borrowing.

Federal Direct Unsubsidized Stafford Loan Limits

  • New annual and aggregate limits based on program type:
    • Graduate programs: annual limit of $20,500; aggregate limit of $100,000 (excluding undergraduate loans).
    • Professional programs: annual limit $50,000; aggregate limit $200,000 (excluding undergraduate loans).
  • Current students with unsubsidized loans prior to July 1, 2026 must continue to borrow under existing limits for a defined period.

  • Graduate PLUS Loan FAQs:

    Graduate PLUS loans are available through the 2025-2026 school year for current students who borrow before July 1, 2026.

    I am currently borrowing a Graduate PLUS Loan. Will I still receive this loan?

    Definitions of professional programs and how limits apply will depend on forthcoming federal guidance.

    What is considered a Professional Program?

    Prospective graduate/professional students may be eligible for Federal Direct Unsubsidized loans at the new limits; private loans may be considered if additional funds are needed.

    Can I borrow using the Federal Direct Unsubsidized Loan?

All Student Borrowers

Federal Direct Loan Proration

Beginning in the 2026–2027 academic year, new federal regulations under the One Big Beautiful Bill Act (OBBBA) may change how Federal Direct Loans are awarded and disbursed.

Students enrolled less than full-time in course work that applies toward their degree program may receive a prorated loan amount based on enrolled credit hours rather than the full annual loan limit.

Changes to your enrollment, such as dropping courses, withdrawing or reducing hours, may also result in a recalculation of your loan eligibility and future disbursements.

To avoid unexpected changes to your aid:

  • Review your financial aid offer carefully
  • Monitor loan disbursement dates and amounts
  • Contact the St. Mary’s University Office of Financial Assistance before changing your schedule

  • For timely updates on specific 2026-2027 changes (e.g., new annual/aggregate loan limits and eligibility criteria), bookmark the Announcements and Events page and the Loan Limits page. These will be official sources where policy changes appear once fully adopted.

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