Federal Financial Aid Update
Learn about the One Big Beautiful Bill Act, passed by Congress on July 4, 2025. The law includes several important updates to federal student aid that take effect July 1, 2026.
- Effective July 1, 2026 the Graduate PLUS loan will not be available to new graduate and professional students starting a new graduate or professional program.
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or until program completion, whichever is less. Students must also remain in the same major (i.e., academic program) to be eligible for loans under this provision.
- Interest rates are fixed for the life of the loan. Interest on this loan will accrue while in-school. Students have the option to either pay the interest on a monthly/quarterly basis or to capitalize the interest. It is strongly recommended that a student pay the interest on the loan whenever possible.
- Origination fee of 4.236% is deducted from the loan proceeds prior to the loan disbursement.
- Credit analysis is less stringent on this loan and there is no debt to income consideration as opposed to private educational loans. If denied there is the opportunity to have an endorser (co-signer) apply.
- Loan Limits are based on the students cost of attendance minus all financial aid received. There is no aggregate limit amount.
- Repayment of this loan begins 60 days after the loan has disbursed. However, the loan servicer will automatically place the loan on in-school forbearance until 6 months after the student drops below half time or graduation. Students can take up to 10 years to repay the loan and alternate repayment options are available that may extend the repayment term. Forbearance options are available for special circumstances.
- Consolidation is available on the Graduate PLUS loan. This loan may be consolidated with all other federal loans that the student holds.
