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P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA) or the reconciliation bill, signed July 4, 2025, includes significant reforms to federal student aid programs. It changes the eligibility and amounts for Pell Grants, sets new limits for federal student loans (including the phase-out of Grad PLUS), requires loan proration for less than full-time enrollment, and introduces a new income-driven repayment option. Most changes are scheduled to begin in the 2026–27 academic year and will be rolled out gradually. Some implementation details still require federal rulemaking, so we’ll share more information as it becomes available.

No. If you’re currently receiving aid or are in repayment, your loans and grants remain under their present terms for now. Most changes—including new loan limits and repayment options—will apply starting in the 2026–27 academic year. We are monitoring federal guidance and will update you as details are finalized.

Lifetime Direct Loan borrowing cap

• $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.

Parent PLUS Loan borrowing cap

• Annual cap: $20,000 per year per student.
• Lifetime cap: $65,000 per student—for parents borrowing under PLUS.

IMPORTANT NOTE: Students who borrow the maximum amount of $20,000 per year, may run out of PLUS eligibility by their Senior year due to the $65,000 lifetime limit.

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Lifetime Direct Loan borrowing cap

• $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.

Annual Direct Unsubsidized Loan limits

• Graduate degrees: max $20,500/year, aggregate cap $100,000.
• Professional degrees: max $50,000/year, aggregate cap $200,000.

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The federal definition of eligible professional degree programs is expected to include Law (L.L.B. or J.D.).

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IMPORTANT NOTE: The Grad PLUS Loan program is eliminated for new borrowers after July 1, 2026.

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If you’re currently enrolled and participating in the student and/or parent loan programs at Loyola, there are no changes to the aid you’ve already received.

If you borrowed a federal student loan at Loyola for a term that began before July 1, 2026, you remain eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter), including Graduate PLUS loans.

If your parent borrowed a Parent PLUS loan at Loyola for a term that began before July 1, 2026, your parent remains eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter).

To be eligible for the previous loan limits (including Grad PLUS), you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.

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Yes. Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on .

Most changes take effect starting with the 2026–27 academic year. That includes new loan limits, the phase-out of Grad PLUS, and changes to Pell Grant eligibility.

No, federal loan and aid changes under the new law will not affect your scholarships. Scholarships are awarded and renewed based on university policies and program criteria. If changes to federal aid affect your overall funding, we encourage you to contact financial aid to review other possible options.

Anyone who did not take out a loan during their current program study and before July 1, 2026 or will be starting a new degree program in the 26/27 academic year.

Credit based private loans can be used to fill the gaps that aren’t covered by Federal loans. We encourage students to review the as a starting point.

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 for terms that begin on or after July 1, 2026.

If you’re already borrowing Direct Loans before July 1, 2026, you may borrow Grad PLUS. To be eligible, you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.

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The distinction between “graduate” and “professional” programs is defined in federal regulation (34 CFR § 668.2) and affects how much you can borrow each year. Professional programs are typically those that signify completion of academic requirements for beginning work or practice in a given profession, are generally at the doctoral level, and lead directly to a degree required for licensure in a recognized profession, such as medicine (MD).�� The federal regulations include the following programs in the definition:

• Pharmacy (Pharm.D.);
• Dentistry (D.D.S. or D.M.D.);
• Veterinary Medicine (D.V.M.);
• Chiropractic (D.C. or D.C.M.);
• Law (L.L.B. or J.D.);
• Medicine (M.D.);
• Optometry (O.D.);
• Osteopathic Medicine (D.O.),;
• Podiatry (D.P.M., D.P., or Pod.D.);
• Theology (M.Div., or M.H.L.); and
• Clinical Psychology (Psy.D. or Ph.D.)

All other post-baccalaureate programs—including most master’s and PhD programs—are classified as graduate.

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We’ll post updates on this website as new details become available.

You can also:

• Contact the Office of Financial Aid with questions about your specific situation.
• Monitor announcements from the U.S. Department of Education at .
• Keep an eye on school communications, as some programs may publish program-specific updates.