About the Federal Loan Changes
Effective July 1, 2026
The One Big Beautiful Bill Act (OBBB), signed into law in July 2025, introduced broad reforms to federal student loan programs as part of national budget and policy adjustments. While these changes are forthcoming, the 2025–2026 academic year will proceed under current federal loan rules, with new provisions scheduled to take effect no sooner than July 1, 2026.
Parker University is continuing to monitor these developments and will update* this page as additional clarification from the U.S. Department of Education (ED) is released.
In the meantime, please note:
- There are no changes to financial aid for the 2025–2026 academic year stemming from this legislation. Parker’s academic year includes the fall, winter, and summer terms.
We’re here to help! If you have questions or would like to speak with a One Stop Guide about your aid or these regulatory changes, please don’t hesitate to contact the Parker University One Stop team at 214.902.2424 or Ask1Stop@Parker.edu.
*This section was last updated March 20, 2026
What We Know (as of March 2026)
Grad Plus Loans
- Students who have already borrowed a Direct loan may retain eligibility for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming.
- Students beginning a graduate or Doctor of Chiropractic program before July 1, 2026, may remain eligible for Grad PLUS loans under current rules. Specific transition guidance is expected but has not yet been released.
- Grad PLUS loans will be phased out beginning July 1, 2026.
- After that date, new Grad PLUS loans will no longer be available to new borrowers.
- Parker University is working with alternative lenders to provide loan options to fill the Grad PLUS gap.
New Graduate Unsubsidized Direct Loan Limits
| Current Limits | Updated Limits (eff. 7/1/26)* |
| Graduate Students | Graduate Students |
| $20,500 annual loan limit | $20,500 annual loan limit |
| $138,500 aggregate loan limit | $100,000 aggregate loan limit |
| DC Students | DC Students |
| $33,000 annual loan limit | $50,000 annual loan limit |
| $224,000 aggregate loan limit | $200,000 aggregate loan limit |
*Implementation of loan limits is still outstanding. These amounts may be lower upon implementation.
- Lifetime borrowing limits for all federal loans (undergraduate, graduate, and professional) will increase to $257,500.
- Students with existing Unsubsidized Direct Loans may continue borrowing under current limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming.
Undergraduate and Parent PLUS Loans
- No changes are expected to undergraduate loan limits at this time, though undergraduate borrowing will count toward new lifetime limits beginning July 1, 2026.
- Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student, starting July 1, 2026.
- Parents who have borrowed for their student(s) before July 1, 2026, may continue borrowing under current limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming.
Public Service Loan Forgiveness (PSLF)
- No changes to PSLF have been made under the OBBB legislation.
- However, separate regulatory actions may introduce future adjustments to eligibility requirements.
Loan Proration for Part-Time Enrollment
- Students enrolled less-than-full-time will have their loans pro-rated based on the number of credit hours considered full time for that academic year for the program of study.
- Full-time enrollment is defined as 16 credits for Doctor of Chiropractic programs, 6 credits for graduate programs, and 12 credits for undergraduate programs.
- This means part-time students may only qualify for a portion of the annual loan limit.
- Additional guidance is expected to explain how this will apply to all borrowers.
What We Are Awaiting Guidance On
Continuing Eligibility for Grad PLUS Borrowers
- Current indications suggest that a student who borrowed any Direct Loan or Grad PLUS loan in the program before July 1, 2026, may retain eligibility for Grad PLUS loans for 3 academic years or the remainder of their expected time to credential, whichever is less.
- Parker University is awaiting official ED clarification on this matter.
New Repayment Framework
- For loans first disbursed on or after July 1, 2026, the current income-driven repayment plans (IBR, PAYE, SAVE) will be replaced by a new Repayment Assistance Program (RAP).
- Students who borrow both before and after July 1, 2026, may have different repayment options for each group of loans.
- Borrowers with no new loans after July 1, 2026 can remain in existing repayment plans or opt into the new RAP.
- Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028.
- Additional details about RAP, including repayment terms and forgiveness options, will be provided by the Department of Education once finalized.
Parker University wants to ensure you receive up-to-date, accurate information about your federal student loans and to provide any assistance needed to begin repaying them. That’s why we’ve partnered with Student Connections to provide you with additional support.
Disclaimer:
The information provided on this page was developed by Parker University to help orient Parker students and families to the changing federal student loan landscape. It is based on our current understanding of the evolving federal standards and may change as new information becomes available. This information is not official guidance from the U.S. Department of Education and may not be applicable at other schools. Students should refer to federal sources for definitive updates — see studentaid.gov for official information.
Staying Informed
Parker University will continue to provide updates as federal agencies release more guidance.
Students and families are encouraged to:
- Review this page periodically for new information.
- Visit studentaid.gov for official federal updates.
- Contact the One Stop team at 214.902.2424 or Ask1Stop@Parker.edu with any questions about how these changes may affect your current or future borrowing.
