Federal Loan Changes
The Reconciliation Bill of 2025 (Public Law 119‑21), also known as the One Big Beautiful Bill, was signed into law on July 4, 2025. This bill includes several changes to federal loan programs.
To help you understand what’s coming, we’re sharing what we currently know about how the new rules will affect federal loan programs. Because more details are still being released, this information is tentative and may change. We’ll update this page as we learn more.
Below you’ll find a brief overview of the changes to federal loan programs, including charts comparing current rules to the new ones. Changes to federal loans will take effect beginning with the 2026–27 school year.
Undergraduate Student Loan Changes
| Undergraduate Students - Federal Subsidized/Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
| What has changed: No change. Annual and aggregate federal subsidized and unsubsidized student loan limits remain the same. | ||
| Year In School | Dependent* Students (except students whose parents are unable to obtain PLUS Loans) | Independent* Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
| First-Year Undergraduate Annual Loan Limit (0-29 credit hrs completed) | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit (30-59 credit hrs completed) | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate Annual Loan Limit (60+ credit hrs completed) | $7,500 per year-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
| Aggregate Loan Limit for Undergraduate Students | $31,000-No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. |
| *Your dependency status is determined by whose information you are required to report on the FAFSA - see more information about dependency status at studentaid.gov/apply-for-aid/fafsa/filling-out/dependency | ||
| Undergraduate Students - Federal Direct Parent PLUS Loans - Effective July 1, 2026 | ||
|---|---|---|
| What has changed: The annual and aggregate Parent PLUS loan limits. | ||
| Annual Parent PLUS Loan Limit | Aggregate Parent PLUS Loan Limit | |
| Received federal loans at KU for CURRENT program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | Cost of Attendance minus Other Financial Aid | No Aggregate Limit |
| Did NOT receive federal loans at KU for current program prior to July 1, 2026 | $20,000 per year, per student | $65,000 per student |
| *Students who qualify under the legacy provision can continue to have parents borrow under previous Parent PLUS loan limits for 3 academic years or the remainder of their dependent student's expected time to credential, whichever is less. Students cannot opt out of the legacy provision. | ||
Starting with the 2026-2027 school year, students may not receive more than half of the annual limit in any single semester.
Additionally, the annual and semester limits for federal loans assume a student will be enrolled full time throughout the academic year. If a student is not enrolled full time during a semester, their federal loans will be prorated based on how many hours they are enrolled in. Proration will multiply the number of hours a student is enrolled in by the semester limit (50% of annual limit). That product will be divided by the number of hours required for full time status (12 hours for undergraduates, 9 hours for graduate/professional students).
Loan proration applies to subsidized loans, unsubsidized loans, and Graduate PLUS loans. Parent PLUS loans are not subject to proration.
Some students will be granted full-time status regardless of hours (typically GTAs and dissertation students), and loans for these students will not be subject to proration.
Parent PLUS Loan Changes
| Parents - Federal Direct Parent PLUS Loans - Effective July 1, 2026 | ||
|---|---|---|
| What has changed: The annual and aggregate Parent PLUS loan limits. | ||
| Annual Parent PLUS Loan Limit | Aggregate Parent PLUS Loan Limit | |
| Received federal loans at KU for CURRENT program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | Cost of Attendance minus Other Financial Aid | No Aggregate Limit |
| Did NOT receive federal loans at KU for current program prior to July 1, 2026 | $20,000 per year, per student | $65,000 per student |
| *Students who qualify under the legacy provision can continue to have parents borrow under previous Parent PLUS loan limits for 3 academic years or the remainder of their dependent student's expected time to credential, whichever is less. Students cannot opt out of the legacy provision. | ||
Graduate & Professional Student Loan Changes
"Graduate Student" refers to all graduate students enrolled in a master's or doctoral degree program that is not classified as a "professional" degree program for federal loan purposes.
| Graduate Students - Federal Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
| What has changed: The annual and aggregate federal unsubsidized direct student loan limits for graduate students. | ||
| Annual Loan Limit | Lifetime Loan Limit | |
| Received federal loans at KU for your CURRENT Graduate Program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | $20,500 | $138,500 (includes undergraduate loans) |
| Did NOT receive federal loans at KU for CURRENT Graduate program prior to July 1, 2026 | $20,500 | $100,000 (not including undergraduate loans) |
| Enrolled in a new graduate program at KU after July 1, 2026 | $20,500 | $100,000 (not including undergraduate loans) |
| *Students who qualify under the legacy provision will continue to borrow under previous loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Students cannot opt out of the legacy provision. | ||
The federal government uses the term “professional student” to describe students enrolled in specific, advanced degree programs that lead directly to a professional license.
"Professional Student" includes students enrolled in the following programs: Law; Clinical, Counseling and Applied Psychology; Medicine; and Pharmacy / Pharmaceutical Sciences.
| Professional Students - Federal Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
What has changed: The annual and aggregate federal unsubsidized direct student loan limits for professional students. Please note: "Professional Programs" include: Law; Clinical, Counseling and Applied Psychology; Medicine; and Pharmacy / Pharmaceutical Sciences. | ||
| Annual Loan Limit | Lifetime Loan Limit | |
| Received federal loans at KU for CURRENT Professional Program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | $20,500 | $138,500 (includes undergraduate loans) |
| Did NOT receive federal loans at KU for CURRENT Professional Program prior to July 1, 2026 | $50,000 | $200,000 (not including undergraduate loans) |
| Enrolled in a new professional program at KU after July 1, 2026 | $50,000 | $200,000 (not including undergraduate loans) |
| *Students who qualify under the legacy provision will continue to borrow under previous loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Students cannot opt out of the legacy provision. | ||
PLUS loans for Graduate Students and Professional Students are being eliminated for new borrowers. The "Grad PLUS" program - which previously allowed graduate and professional students to borrow up to full cost of attendance - will no longer be available to new borrowers starting July 1, 2026.
| GRADUATE & PROFESSIONAL STUDENTS - Federal Direct PLUS Loans - Effective July 1, 2026 | ||
|---|---|---|
| What has changed: The Direct PLUS Loan program for Graduate and Professional students is being eliminated for new borrowers. | ||
| Annual Graduate PLUS Loan Limit | Aggregate Graduate PLUS Loan Limit | |
| Received federal loans at KU for CURRENT program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | Cost of Attendance minus Other Financial Aid | No Aggregate Limit |
| Did NOT receive federal loans at KU for current program prior to July 1, 2026 | Graduate PLUS loans are not an option | Graduate PLUS loans are not an option |
| *Students who qualify under the legacy provision can continue to borrow under previous Graduate PLUS loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Students cannot opt out of the legacy provision. | ||
Starting with the 2026-2027 school year, students may not receive more than half of the annual limit in any single semester.
Additionally, the annual and semester limits for federal loans assume a student will be enrolled full time throughout the academic year. If a student is not enrolled full time during a semester, their federal loans will be prorated based on how many hours they are enrolled in. Proration will multiply the number of hours a student is enrolled in by the semester limit (50% of annual limit). That product will be divided by the number of hours required for full time status (12 hours for undergraduates, 9 hours for graduate/professional students).
Loan proration applies to subsidized loans, unsubsidized loans, and Graduate PLUS loans. Parent PLUS loans are not subject to proration.
Some students will be granted full-time status regardless of hours (typically GTAs and dissertation students), and loans for these students will not be subject to proration.