Federal Aid Changes

SLU has three degree programs defined as “professional” for federal student loan eligibility: Medicine (M.D.), Law (J.D.) & Clinical Psychology (Ph.D.). Current regulations 34 CFR 668.2 provide a definition of professional programs and some examples of programs that qualify. Students not in programs listed here are considered graduate for borrowing eligibility. The list of professional programs are: 

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

If you start a new graduate program in Fall 2026 and you did not receive a Federal Direct loan (Unsubsidized or Graduate PLUS) for that program before July 1, 2026, you will be considered a new borrower under the new federal rules. See Overview above for loan eligibility and repayment information. 

Graduate: The new regulations in OB3 state to be a legacy borrower, you must have borrowed loans that were made before July 1, 2026, in your current graduate program of study. You will be eligible for $20,500 per year, with the aggregate limit of $100,000. This limit includes any prior Direct Unsubsidized loans you borrowed for graduate programs. The Graduate PLUS loan will not be available. 

Professional: The new regulations in OB3 state to be a legacy borrower, you must have borrowed loans that were made before July 1, 2026, in your current professional program of study. You will be eligible for $50,000 per year, with the aggregate limit of $200,000. This limit includes any prior Direct Unsubsidized loans you borrowed for graduate programs. The Graduate PLUS loan will not be available. 

Private Student Loans: These are offered by private lenders, banks, and credit unions. The terms can vary depending on the lender and normally require a credit check. It is important to compare interest rates, repayment terms, and borrower protection policies offered by each lender. You can learn more and review a list of SLU’s preferred lenders via ELMSelect. 

If your school received disbursement of any Federal Direct Student Loan before July 1, 2026, for the program you are currently enrolled in, you qualify for legacy borrowing status. 

You can continue to borrow federal student loans under the federal loan programs originally available to you when you started your program of study for up to 3 additional academic years or until your expected degree completion date (whichever comes first). The federal student loan limits (annual and aggregate) continue to apply. For example, graduate students can continue to apply for the Graduate PLUS loan to finance their expenses up to cost of attendance for the 2026-2027 school year. 

By staying enrolled in your program at SLU, you maintain legacy status. Once you change from an undergraduate degree to a graduate/professional degree, you lose your legacy status and all new loan limits will apply. 

No. If a student or parent meets the conditions for the legacy provisions under OB3, the student cannot opt out. The student must continue to borrow under the legacy provisions unless they withdraw or cease to be enrolled in the program of study at any point after receiving the legacy provision exception. 

The new regulations are based on any newly started programs beginning July 1, 2026. If you are already attending SLU but start a new program such as law school next year, you WILL NOT have access to the Graduate PLUS loan for that degree program and the new federal loan limits will apply to you. 

If a student is enrolled in a program that awards both a graduate degree and professional degree, the student shall be considered a professional student if more than 50% of the credit hours in that program count toward the professional degree.  In a professional degree program, the annual limit is $50,000 and aggregate limit is $200,000 (excludes undergraduate).  Please see above for the list of graduate and professional degrees for purposes of federal student aid.  For a list of SLU graduate dual-degree programs visit the university catalog. 

Yes, the legacy provisions allow you to continue borrowing under your current loan limits for three additional academic years or until your expected degree completion date (whichever comes first). 

No. Your current 2025-26 fall/spring/summer financial aid package will not be impacted by this new law. 

Your 2025-26 Pell Grant award will not change. Congress provided an additional $10 billion to make sure Pell recipients were fully-funded for the 2025-26 school year. Additional action will need to be taken by Congress to secure funding for 2026-27 and beyond. 

Campus-based programs including FSEOG have been funded for the current 2025-26 school year. We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond. 

Campus-based programs including FWS have been funded for the current 2025-26 school year. We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond. 

Yes. Under current federal rules and regulations, eligible undergraduate students with demonstrated financial need can still qualify for a subsidized loan for the current aid year and beyond. 

Yes. Under current federal rules and regulations, undergraduate students can still qualify for an unsubsidized loan for the current aid year and beyond. 

Beginning with the 2026-27 school year, students enrolled less than full time may have their loans adjusted accordingly. Students enrolled less than half time are not eligible for federal student loan disbursement. 

• All parents (combined) may borrow $20,000 per year per dependent student. 
• $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged). 

If your student's school received disbursement of any Federal Direct Student Loan before July 1, 2026, for the program they are currently enrolled in, you qualify for legacy borrowing status. 

Parents can continue to borrow Federal Direct PLUS Loans originally available when the dependent student started their program of study for up to 3 additional academic years or until expected degree completion date (whichever comes first). Parents can continue to apply for the Parent PLUS loan to finance their student’s expenses up to cost of attendance during the legacy provision window.  

No. If a student or parent meets the conditions for the legacy provisions under OB3, the student cannot opt out. The student must continue to borrow under the legacy provisions unless they withdraw or cease to be enrolled in the program of study at any point after receiving the legacy provision exception. 

After three years, you will be subject to the new annual and aggregate Direct PLUS Loan limits. You would also have access to private loans following their own regulations.  

Private Student Loans: These are offered by private lenders, banks, and credit unions. The terms can vary depending on the lender and normally require a credit check. It is important to compare interest rates, repayment terms, and borrower protection policies offered by each lender. You can learn more and review a list of SLU’s preferred lenders via ELMSelect. 

You will have access to the two new loan repayment plans of Standard Repayment Plan and Repayment Assistance Plan (RAP).

The new Standard Repayment Plan will assign you a loan repayment period based on how much you borrow from federal loans.

• 10-year repayment period: Less than $25,000
• 15-year repayment period: $25,000 to $49,999
• 20-year repayment period: $50,000 to $99,999
• 25-repayment period: $100,000 or more

Repayment Assistance Plan works differently compared to prior income-driven repayment plans as it looks at your most recent tax year’s adjusted gross income (AGI). The list below will give a breakdown of loan period based on borrowing amount and percentage based on AGI. 

• Repayment term of 10 years: Total outstanding principal at repayment less than $25,000
• Repayment term of 15 years: Total outstanding principal at repayment $25,000 to $49,999
• Repayment term of 20 years: Total outstanding principal at repayment $50,000 to $99,999
• Repayment term of 30 years: Total outstanding principal at repayment more than $100,000

You may remain or enroll in the current Standard, Income-Based (IBR), Graduated, or Extended repayment plans. Starting July 1,2026, you may choose to enroll in new Standard Repayment or RAP. 

Borrowers currently enrolled in ICR, PAYE, or SAVE, will be required to transition to the new Standard Repayment Plan, IBR, Graduated, Extended, or RAP by July 1, 2028. If a decision is not selected, then you will be automatically placed into RAP on July 1, 2028.

You will have access to the new Standard Repayment Plan or RAP. 

As of July 1, 2027, economic hardship and unemployment deferment will no longer be available. There will still be a forbearance option, but it is limited to 9 month increments during a 24-month (2 year) period. Federal loan servicers will still have the option to place borrowers in temporary forbearances throughout the life of the loans. A list of federal loan servicers can be found at studentaid.gov.

No changes were made to the PSLF program other than clarification that payments made while enrolled in RAP qualify for PSLF. Early versions of OB3 did have changes to PSLF, but none of these changes were in the finalized and signed version of the bill.