Federal Financial Aid Changes

Important changes affecting undergraduate and graduate students for 2026-27 and beyond

The One Big Beautiful Bill Act (OBBB) made changes in federal student loan programs starting July 1, 2026.

Important disclaimer: The page provides general information, not official guidance, and is current as of 1/30/2026. This page will be updated as more information becomes available. See studentaid.gov for more information.

Summary of Federal Loan Changes

Graduate PLUS eliminated for new Graduate and Professional students.

Legacy provision for continuing students registered in semesters starting before June 30, 2026.

New annual and aggregate limits to Unsubsidized Direct Loan limits for Graduate and Professional students.

New annual and aggregate Parent PLUS limits for new undergraduate Parent PLUS borrowers.

New proration rules pending definition.

What We Know:

Grad PLUS loans will be phased out beginning on July 1, 2026 and will no longer be available. See new loan options below.

Current Grad PLUS borrowers will be able to keep their loans as they complete their current programs, provided they meet criteria below.

Legacy Provisions for Current Borrowers

If you borrow any Direct Loan or Grad PLUS in a semester that begins before June 30, 2026, you may continue borrowing Grad PLUS loans for up to 3 years or until you complete your current program—whichever comes first. You must remain in the same program at the same school.

Note: Undergraduates in 2025–26 starting a graduate program in 2026–27 do not qualify for this legacy provision.

Existing unsubsidized loan borrowers can access unsubsidized loans under the current limits until they complete their current program or for three additional years, whichever is less.

New Graduate Unsubsidized Direct Loan Limits (effective July 1, 2026)

For non‑professional graduate programs (which includes CHHS graduate programs):

Loan type: Federal Direct Unsubsidized Loans
Annual limit: $20,500 per year
Aggregate (lifetime) limit: $100,000 total for graduate study

These limits take effect July 1, 2026, when Grad PLUS loans are eliminated for new borrowing.

Private Loans

WMU has identified private lenders that are listed through ELMSelect.

For more details on these and other loan options, see our Financial Aid loan information page.

New Repayment Plans

For loans disbursed after July 1, 2026, current income-driven plans (IBR, PAYE, SAVE) are replaced by the Repayment Assistance Program (RAP). Borrowers with both pre- and post-July 2026 loans may only use RAP or standard plans for new loans. Details: studentaid.gov/repayment-plans.