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Federal Financial Aid Updates

Updates Related to Graduate Plus Loans

These changes take effect July 1, 2026, as a result of the recently enacted Federal H.R. 1 (the Bipartisan Student Loan Reform Act). They impact new graduate students enrolling in Fall 2026 and outline updates to loan programs, limits and repayment plans.

Key Updates

  • The Grad Plus Loan program will be discontinued for new students.
  • For current students with Federal Direct Loans (Unsubsidized or Grad PLUS) from before July 1, 2026, you can continue using them for either:
    • Up to three more academic years, or
    • Until you complete your current program, whichever comes first.

New Federal Loans Limits (Starting July 1, 2026)

Non-Professional Degree students:

  • Up to $20,500 per year in Direct Unsubsidized Loans.
  • Up to $100,000 in total graduate-only federal borrowing.

Professional Degree students:

  • Up to $50,000 per year in Direct Unsubsidized Loans.
  • Up to $200,000 in total professional-level federal borrowing.

Overall Lifetime Borrowing Limits: 

  • Up to $257,500 in federal student loans across all levels of study (undergraduate + graduate + professional), not counting Parent PLUS borrowed on your behalf.

Repayment Plans and Options:

  • New loans after July 1, 2026: Can be repaid using two plans — a redesigned Standard Repayment Plan or a new income-based repayment plan called Repayment Assistance Plan (RAP). New borrowers are assigned the standard plan unless they opt for RAP. New borrowers will be assigned the standard repayment plan, unless they opt for the RAP.
  • Current borrowers with no new loans after July 1, 2026: Eligible for Standard, Graduated, Extended, or Income-Based Repayment (IBR) plans; may also opt into RAP.
  • Current borrowers in ICR, PAYE, or SAVE plans: Must transition to a different plan (Current IBR, Standard, or RAP) by July 1, 2028. If no selection is made, borrowers will automatically be moved into RAP.

These changes will take effect on July 1, 2026 and will only impact future borrowing, and not any federal aid you might have received for the 2025–2026 academic year.

The new loan limits and repayment structure begin with loans first disbursed on or after July 1, 2026. If you are currently enrolled and receiving federal aid, you will continue under your existing aid offer for this academic year.

Professional vs. Non-Professional Designation

The U.S. Department of Education defines a Professional Degree as any degree providing instruction in the following subject areas and, as such, qualifying for higher loan limits:

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

All other eligible master’s and doctoral programs are defined as “Non-Professional programs for loan-limit purposes, even though they may lead to state licensure (e.g. PSY MFT, EDU CA Credential).

Important: The designation of a degree as “Professional” or “Non-Professional” does not reflect its value. This distinction is solely for determining which programs qualify for higher loan limits. Non-Professional programs remain vital to education and community needs.

Here to Help

Mount Saint Mary’s University has carefully reviewed these changes and is actively exploring ways to support students, including guidance on private loan programs to address potential gaps. We recognize that some students rely on these programs and remain committed to helping you navigate this evolving landscape.

For questions about these changes, please contact the Graduate Admission Office at gradprograms@msmu.edu.

Options to Bridge the Gap:

  1. Start in Summer 2026
    • Be grandfathered in to receive the Grad PLUS Loan for up to three more academic years.
    • Most graduate programs (except DPT) will now open and offer a course in the summer to provide this benefit to any students who may need the Grad Plus Loan. The student must be enrolled in at least three units to qualify.
    • Summer semester starts May 11, 2026, and the federal loan must be disbursed by July 1, 2026. Loans for summer entrants are disbursed by the add/drop deadline, which is May 18, 2026.
    • If you decide to start Summer 2026, please submit both the 2025-26 FAFSA and the 2026-27 FAFSA for Fall 2026.
    • Students who start in summer will also benefit from this academic year’s (2025-26) lower tuition.
    • Starting in Summer is a great way to ease into graduate studies and get a head start.
  2. Private Loan Options
    • Students can replace the Grad Plus Loan and bridge the gap with ELM Select private lenders.