Important Federal Student Loan Changes Effective July 1, 2026
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and includes significant changes to the federal student loan programs, most of which become effective on July 1, 2026. We are detailing the most relevant changes below. Please note that we are awaiting more guidance from the U.S. Department of Education (ED) regarding some of these changes, and we will keep this web page up-to-date as new information is provided.
Federal Direct Graduate PLUS Loan Program
Program Elimination
As of July 1, 2026, the Federal Direct Graduate PLUS Loan program is eliminated. New borrowers will not be able to borrow this loan; however, there is a legacy provision in place for past federal student loan borrowers.
Legacy Provision
If a student-borrower had a Federal Direct Loan disburse before July 1, 2026, and remains enrolled in the same program of study that they were enrolled in in as of July 1, 2026, the student-borrower can continue to borrow Graduate PLUS Loans from the program for 3 academic years or the remainder of their expected time to complete their program, whichever is less.
A student-borrower under the legacy provision will lose eligibility to continue to borrow Graduate PLUS Loans if:
- The student changes their program of study.
- The student ceases enrollment (see Broken Enrollment Policy).
- The student completes a total withdrawal, as defined on our Withdrawals webpage.
Federal Direct Parent PLUS Loan Program
Annual and Aggregate Loan Limits for New Borrowers
Prior to July 1, 2026, Parent PLUS Loan borrowers were not subject to borrowing limits beyond the amount that would fit into their dependent student’s Cost of Attendance (COA). After July 1, new parent-borrowers will be subject to the following limits:
- New parent-borrowers may borrow up to $20,000 per academic year.
- New parent borrowers will have an aggregate Parent PLUS Loan limit of no more than $65,000 per dependent student.
Legacy Provision
If the dependent student had a Federal Direct Loan disburse before July 1, 2026, while he or she is enrolled in a program of study OR if the parent-borrower had a Parent PLUS Loan disburse before July 1, 2026, while their dependent students is enrolled in a program of study, the parent-borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to complete their program, whichever is less.
A parent-borrower under the legacy provision will lose eligibility to continue to borrow outside of the new annual and aggregate limits if:
- Their dependent student changes their program type
- Example: a student enrolled in a bachelor’s degree program changes to an associate’s degree or certificate program – this would result in the student losing their legacy provision.
- Changing a major/minor within the same program type will not cause loss of the Parent PLUS Loan legacy provision
- Example: switching from a bachelor’s degree in business to a bachelor’s degree in education.
- Their dependent student ceases enrollment (see Broken Enrollment Policy)
- Their dependent student completes a total withdrawal, as defined on our Withdrawals webpage.
Loan Proration
Not Attending a Full Academic Year
Under the OBBBA, students who do not attend Liberty University for the entire academic year (Fall and Spring) may have their maximum annual loan limit reduced. This means students who attend only 1 semester within the academic year are only allowed to receive up to 50% of their annual loan amount for that semester.
Example 1: A Graduate student who is only attending the Spring semester, will only be eligible for up to $10,250 in unsubsidized loans as long as it fits within their Cost of Attendance. In addition, as indicated in the Enrollment Intensity information below, the student will only be able to receive the full $10,250 if the student attends the Spring semester full-time, or 9 credit hours at the Graduate level.
Example 2: A Freshmen Independent Undergraduate student who is only attending the Spring semester, will only be eligible for up to $4,750 in federal loans (of which $2,750 can be subsidized loans if the student is eligible). Again, as indicated in the Enrollment Intensity information below, the student will only be able to receive the full $4,750 if the student attends the Spring semester full-time, or 12 credit hours at the Undergraduate level.
Enrollment Intensity
The OBBBA also includes a provision to prorate all federal student loan amounts based on enrollment, meaning the Financial Aid Office will be required to reduce loan amounts for students who enroll less than full-time. Before this change, students only needed to be enrolled at least half-time to receive their loan disbursement.
Examples: Half‑Time Enrollment – Fall and Spring
Scenario: A freshman, independent undergraduate student is enrolled half‑time (6 credit hours) in both the Fall and Spring semesters.
Fall Semester (6 credit hours)
$4,750 × (6 hours enrolled ÷ 12 hours for full time status) = $2,375
Up to $1,375 of the $2,375 may be subsidized, if eligible
Spring Semester (6 credit hours)
$4,750 × (6 hours enrolled ÷ 12 hours for full time status) = $2,375
Up to $1,375 of the $2,375 may be subsidized, if eligible
Total Loan Amount for the Academic Year
$2,375 (Fall) + $2,375 (Spring) = $4,750 total
Up to $2,750 may be subsidized, if eligible
Scenario: A graduate student is enrolled half‑time (6 credit hours) in both the Fall and Spring semesters.
Fall Semester (6 credit hours)
$10,250 × (6 hours enrolled ÷ 9 hours for full-time status) = $6,868
Spring Semester (6 credit hours)
$10,250 × (6 hours enrolled ÷ 9 hours for full-time status) = $6,867
Total Loan Amount for the Academic Year
$6,868 (Fall) + $6,867 (Spring) = $13,735 total
Scenario: A doctoral student is enrolled half‑time (3 credit hours) in both the Fall and Spring semesters.
Fall Semester (6 credit hours)
$10,250 × (3 hours enrolled ÷ 6 hours for full-time status) = $5,125
Spring Semester (6 credit hours)
$10,250 × (3 hours enrolled ÷ 6 hours for full-time status) = $5,125
Total Loan Amount for the Academic Year
$5,125 (Fall) + $5,125 (Spring) = $10,250 total
We are awaiting final guidance from ED on this provision and will continue to update this section as we receive it.
Federal Direct Unsubsidized Student Loan Program
New Aggregate Loan Limits
Limits on and after July 1, 2026
Note: The new limits below for Graduate, Doctoral, and Professional students only apply to new student loan borrowers on or after July 1, 2026. Students who have borrowed prior to this date will be held to the limits that were in place prior to July 1.
| Student Type | Subsidzed Loan Maximum (UG only) | Unsubsidzed Loan Maximum | Overall Maximum |
|---|---|---|---|
| Undergraduate dependent students | $23,000 | $31,000 | $31,000 |
| Undergraduate independent students | $23,000 | $57,500 | $57,500 |
| Graduate /Doctoral students (Non-Professional) | N/A | $100,000 | $157,500 |
| Professional Students* | N/A | $200,000 | $257,500 |
*Professional Student programs include: College of Osteopathic Medicine (D.O), School of Law (J.D.), Master of Divinity (M.Div.), and Doctor of Psychology (Psy.D.) Please note that the J.D., M.Div. and Psy.D only apply as professional programs for new students, beginning with the 2026-27 academic year.
Limits prior to July 1, 2026
| Student Type | Subsidzed Loan Maximum (UG only) | Unsubsidzed Loan Maximum | Overall Maximum |
|---|---|---|---|
| Undergraduate dependent students | $23,000 | $31,000 | $31,000 |
| Undergraduate independent students | $23,000 | $57,500 | $57,500 |
| Graduate /Doctoral students (Non-Professional) | N/A | $138,500 | $138,500 (including any sub/unsub loans borrowed at the UG level) |
| Liberty University College of Osteopathic Medicine (LUCOM) students | N/A | $224,000 | $224,000 (including any sub/unsub loans borrowed at the UG level) |
New Annual Loan Limits
Annual borrower limits for federal loans based on grade level and dependency status (U.S. Department of Education)
Limits on and after July 1, 2026
Note: The new limit below for Professional students only applies to new student loan borrowers on or after July 1, 2026. Professional students who have borrowed before this date will be held to the limit that was in place prior to July 1.
| Student Type | Base (Max Subsidized Loan) | Additional Unsubsidized Loan |
|---|---|---|
| Dependent Freshman |
$3,500 | $2,000 |
| Dependent Sophomore |
$4,500 | $2,000 |
| Dependent Junior/Senior |
$5,500 | $2,000 |
| Independent Freshman and Dependent Freshman w/ Parent PLUS Denial | $3,500 | $6,000 |
| Independent Sophomore and Dependent Sophomore w/ Parent PLUS Denial | $4,500 | $6,000 |
| Independent Junior/Senior and Dependent Junior/Senior w/ Parent PLUS Denial | $5,500 | $7,000 |
| Graduate/Doctoral Students (Non-Professional) | $0 | $20,500 |
| Professional Students* | $0 | $50,000 |
*Professional Student programs include: College of Osteopathic Medicine (D.O), School of Law (J.D.), Master of Divinity (M.Div.), and Doctor of Psychology (Psy.D.) Please note that the J.D., M.Div. and Psy.D only apply as professional programs for new students, beginning with the 2026-27 academic year.
Limits prior to July 1, 2026
| Student Type | Base (Max Subsidized Loan) | Additional Unsubsidized Loan |
|---|---|---|
| Dependent Freshman |
$3,500 | $2,000 |
| Dependent Sophomore |
$4,500 | $2,000 |
| Dependent Junior/Senior |
$5,500 | $2,000 |
| Independent Freshman and Dependent Freshman w/ Parent PLUS Denial | $3,500 | $6,000 |
| Independent Sophomore and Dependent Sophomore w/ Parent PLUS Denial | $4,500 | $6,000 |
| Independent Junior/Senior and Dependent Junior/Senior w/ Parent PLUS Denial | $5,500 | $7,000 |
| Graduate/Doctoral/Law Students | $0 | $20,500 |
| Liberty University College of Osteopathic Medicine (LUCOM) students | $0 | $47,167 |