Federal Student Loan Changes

Starting in the 2026–27 academic year, new limits apply:

• All parents (combined) may borrow up to $20,000 per year, per dependent student and the aggregate limit will be capped at $65,000 per dependent student (without regard to the amount forgiven, repaid, canceled, or discharged).

 

• Legacy Provision: Students with a loan disbursed before July 1, 2026 for the student’s current degree program (either a student loan or a parent loan) may continue to borrow under the current loan limits for 3 academic years or until the difference between the total length of the program the borrower is enrolled in and the period of the borrower has already completed.
  • Once legacy provision is broken, student or parent is subject to new limits

Starting in the 2026–27 academic year, new federal loan limits will apply to graduate students:

• Graduate student borrowing is capped at $20,500 per year and the aggregate limit will be $100,000. This does not include amounts borrowed as an undergraduate. 
• The lifetime limit for student borrowers will be $257,500 across undergraduate, graduate, and professional educational careers (does not include Parent PLUS Loan borrowed on behalf of a student).

Grad PLUS Loans are being phased out under the new law.

• New graduate and professional students will no longer be eligible to borrow Grad PLUS loans for the 2026-27 academic year.
• Legacy Provision (interim exception) If a student is currently enrolled in a graduate program at Bard College AND has borrowed a Federal Direct Loan disbursed before July 1, 2026, they may be grandfathered into the current borrowing rules.
• Students who are grandfathered in may continue borrowing under current rules for up to three additional years, or until they finish their current degree program, whichever comes first. This continuation only applies if the student stays in the same program of study.

Breaks in enrollment (Leaves Of Absence) WILL affect a student’s eligibility.

• Adjusted based on enrollment status. Students enrolled less than full-time will have their loans prorated in direct proportion to the percent of full-time status the student is enrolled.

Repayment Plans:
For loans first disbursed on or after July 1, 2026, only two repayment plans will be available:

• Standard Repayment Plan: Fixed monthly payments; 10-, 15-, 20-, or 25-year terms
• Repayment Assistance Plan (RAP): Income-driven; payments based on income; up to 30-year term

Public Service Loan Forgiveness:
The Public Service Loan Forgiveness (PSLF) program will remain in place, and eligible borrowers can continue to work toward forgiveness. The new framework for federal student loan repayment outlined in the new law may make it easier for some borrowers to qualify, especially those with lower incomes. Further details on how PSLF will interact with the new framework are subject to pending rulemaking.