Significant Upcoming Changes to Federal Financial Aid

The federal government recently made a number of changes to Federal Student Aid programs, especially to graduate and professional student and parent loan borrowing limits, effective July 1, 2026. Below is information currently available. We will update this page regularly.

(most recently updated Jul 24, 2026)

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FEDERAL PELL GRANT

  • Students with a Student Aid Index (SAI) calculated on the Free Application for Federal Student Aid (FAFSA) of 14,790 or higher will no longer be eligible.
  • Students who receive grant and scholarship aid that meets their full cost of attendance aside from federal grants will no longer be eligible.

STUDENT AND PARENT LOAN BORROWING LIMITS

CURRENT BORROWERS (Students and parents who have received a Federal Direct Loan in their program before July 1, 2026)

Undergraduate students and their parents
  • No change to the Federal Direct Subsidized and Unsubsidized Loan annual or aggregate borrowing limits.
  • Parent PLUS borrowers will continue to be able to borrow up to cost of attendance, minus other financial aid, while the student completes their program, up to a maximum of three years or the difference between the total length of the program and the period of time the student has already completed, whichever is less. Credits accepted for transfer may count toward time completed in a student’s program.
    • If the student on whose behalf the parent is borrowing withdraws or at any time otherwise ceases to be enrolled in their program, the parent will then be subject to the new borrowing limits below. 
  • Credits accepted for transfer may count toward time completed in a student’s program.

Graduate and professional students

Based on current federal guidance, ‘professional programs’ would include the following at Marquette:

  • Juris Doctor (JD)
  • Doctor of Dental Surgery (DDS)
  • Doctoral Counseling Psychology programs
  • No change to the annual Federal Direct Unsubsidized Loan annual or aggregate borrowing limits, while the student completes their program, up to a maximum of three years or the difference between the total length of the program and the period of time the student has already completed, whichever is less. Credits accepted for transfer may count toward time completed in a student’s program.
  • Graduate PLUS borrowers will continue to be able to borrow up to the full cost of attendance, minus other financial aid, while the student completes their program, up to a maximum of three years or the difference between the total length of the program and the period of time the student has already completed, whichever is less. Credits accepted for transfer may count toward time completed in a student’s program.
    • If the student changes their program of study/major, withdraws, or at any time otherwise ceases to be enrolled in their program, the student will then be subject to the new Federal Direct Unsubsidized Loan limits below, and will become ineligible for further Graduate PLUS loans. 

NEW BORROWERS (Students and parents who first receive a Federal Direct Loan on or after July 1, 2026)

Undergraduate students and their parents
  • No change to the Federal Direct Subsidized and Unsubsidized Loan annual or aggregate student borrowing limits.
  • Parent PLUS Loan borrowers will have new annual borrowing limits of up to $20,000 per academic year per student, with a lifetime maximum of $65,000 per student.

Graduate students
  • The Federal Direct Unsubsidized Loan annual borrowing limit remains unchanged at $20,500.
  • The aggregate borrowing limit will be reduced to $100,000, including any previous loans received for graduate study, or $200,000 for graduate students who previously borrowed for enrollment in a professional program.
  • The Graduate PLUS program will be discontinued.

Professional students

Based on current federal guidance, ‘professional programs’ would include the following at Marquette:

  • Juris Doctor (JD)
  • Doctor of Dental Surgery (DDS)
  • Doctoral Counseling Psychology programs
  • The Federal Direct Unsubsidized Loan annual borrowing limit will be increased to $50,000.
  • The aggregate borrowing limit will be $200,000, including any previous loans received for graduate or professional study.
  • The Graduate PLUS program will be discontinued.

All students: The lifetime limit for all types of federal student loan borrowing will be $257,500 (excluding parent PLUS loans). This limit is without regard to any amounts cancelled, consolidated, discharged, forgiven, or repaid. 

This lifetime limit will not apply to borrowers who meet the exceptions for Current Borrowers noted above, until they complete or leave their academic programs.

FEDERAL DIRECT LOAN PRORATION

Loan Proration for Less Than Full-Time Enrollment

Beginning in the fall 2026 semester, students’ annual Direct Loan limits will be required to be prorated downward if they are enrolled less than full-time, based on the definition of full-time for their academic program. This reduction for less-than-full-time enrollment is required for all types of federal student loans. It is not required for parent PLUS loans.

Proration Basics

Students must be enrolled at least half-time to receive a federal student loan. If a student enrolls in fewer credits than the following full-time statuses, loan amounts may be required to be reduced:

  • Undergraduate, Dental, Law, and HESP students: 24 credit hours in fall plus spring, or 12 credits per semester (half-time = 6 credits per semester)
  • Graduate and doctoral students: 12 credits in fall plus spring, or 6 credits per semester (half-time = 4 credits per semester)

Statuses may be different for programs for which summer enrollment is required. If you are unsure of the defined full-time status for your academic program, you can locate it on our program length page.

How are the prorated amounts determined?

Prorated amounts are generally determined according to the following federally defined formula:

Less than Full Time Proration

When will my loan funds be prorated?

If a student is enrolled less than full-time at the time of loan disbursement, the loan will generally be prorated at that time. If a student is full-time when loans are disbursed, but drops below full-time later, loan amounts may have to be adjusted in a future semester that academic year, if enrolled.

FEDERAL DIRECT LOAN REPAYMENT CHANGES

  • Two new repayment plans will be introduced for new borrowers, the Tiered Standard repayment plan and the Repayment Assistance Plan (RAP), which will be income-driven. Existing borrowers may continue to utilize certain current plans for a period of time. The details of the new plans were just recently finalized on May 1, 2026 and more information will be posted in the near future. 

 

While the information on this webpage is considered accurate at the time of posting, financial aid requirements and other terms may change periodically and without notice. In addition, it is not possible for any website to comprehensively provide all information related to any particular financial aid topic or specific question.  We encourage you to learn more about all financial aid options available to you by exploring this website in conjunction with other resources and by speaking with a member of the Marquette Central/Office of Student Financial Aid staff.