Many implementation questions remain unanswered. This information is subject to change as more information becomes available.

FEDERAL DIRECT LOANS

Graduate PLUS Loan Program

  • This program is ending, effective July 1, 2026, and will no longer enroll new borrowers.
  • Legacy Provision: Current borrowers can continue their current program under the old loan limits with Graduate PLUS loans until the completion of the program, or three academic years, whichever is first. Current borrowers are defined as those who have borrowed at least one Graduate PLUS loan or Direct Unsubsidized loan prior to July 1, 2026.

Parent PLUS Loan Annual & Aggregate Limit 

  • Eligible parents can borrow up to $20,000 per student per year, with a maximum lifetime limit of $65,000 
  • Legacy Provision: If a borrower has a Parent PLUS loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.

Graduate & *Professional Annual & Aggregate Loan Limits

  • Caps the annual loan limits at $20,500 for graduate students and $50,000 for *professional students. The aggregate limit is capped at $100,000 for graduate students and $200,000 for *professional students and does not include amounts borrowed as an undergraduate. (Borrowers who are both graduate and *professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and *professional school).
  • Legacy Provision: If a borrower has a Direct Unsubsidized Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.

*The proposed definition of professional students includes these PhD level programs.  We will update this list if there are changes.

Pharmaceutics and Drug Design
Pharmaceutics
Medicinal Chemistry
Health Outcomes Research & Policy
Pharmacology
Pharmaceutical Sciences
Clinical Psychology
Counseling Psychology
Educational Psychology
Industrial and Organizational Psychology
Veterinary Medicine
Pharmacy, PharmD
Applied Behavior Analysis 

Federal Loan Program Lifetime Loan Limits

  • $257,500 lifetime borrowing limit on all federal student loans, excluding borrowed Parent PLUS loan amounts (in the case of a dependent student who had Parent PLUS borrowed on their behalf for education expenses).
  • Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.

  • Students enrolled less than full-time will have their federal loans prorated to match their enrollment.  This applies to students enrolled in Undergraduate, Graduate, and Professional degree programs who borrow any type of Federal Direct Student Loan and are not enrolled full-time 
  • It is unclear whether the proration rule applies to the entire school year or on a semester-by-semester basis. We will update guidance as we receive clarification on how this rule will be administered. 
  • For example: A student who is enrolled 6 credit hours in Fall and 6 credit hours in Spring is enrolled 50% each term. Their loans will be prorated to 50% of their annual eligibility. If the student is eligible for $7,500 ($3,750 per term) at full-time for the two semesters combined, then their prorated amount will be reduced to $3,750 ($1,875 per term) to reflect their half-time enrollment.
  • This provision did not have an effective date, but the U.S. Department of Education announced on July 18, 2025 in Dear Colleague Letter GEN-25-04 that it is currently developing the schedule of loan reductions required by proration and will submit the schedule for public comment later this year; once the revised schedule of reductions is issued, schools must use it for students enrolled less than full time during academic years 2026-27 and beyond. 

  • Full Cost of Attendance Scholarships/Grants
    • Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
Auburn University Historical Lender List

Students who need additional funding above the new federal loan limits may want to consider private loans. A historical listing of the lenders used by Auburn students in the past 3 years can be found here. Please review each lender carefully and utilize your full federal loan eligibility before applying for a private loan. We expect applications to be available mid-April 2026 for the 2026-2027 academic year.