Changes to Federal Graduate PLUS Loans
Beginning with the 2026–2027 academic year, new graduate and professional students (and those who do not qualify for legacy provisions) will no longer be eligible to borrow Federal Direct Graduate PLUS Loans. This change takes effect on July 1, 2026. Graduate and professional students may still be eligible for an Unsubsidized loan up to the annual (academic year) limit.
Who May Still Be Eligible to Borrow Graduate PLUS Loans After 2025–2026 (“Legacy” Provisions)
Students who began their current graduate or professional program in 2025–2026 or earlier may continue to borrow Graduate PLUS Loans only for the remaining length of their current program, including time already enrolled. Graduate PLUS eligibility cannot exceed the standard published length of the program.
Examples:
If a graduate program is designed to be completed in two years and a student has already been enrolled for one year before July 1, 2026, the student may borrow Graduate PLUS Loans for one additional year only, as long as they remain continuously enrolled and complete the program on time. Students enrolled in a two-year graduate program who have completed two years are no longer eligible for Graduate PLUS funding.
This applies even if the student was enrolled part‑time. All enrollment—whether full‑time or part‑time—counts toward the total program length. For example, a student enrolled part-time in fall and full-time in spring, or a student enrolled part-time in fall and part-time in spring, are both considered one year toward the total program length.
Program Changes Affect Eligibility
Continued Graduate PLUS eligibility applies only to the student’s current program and degree level. Students will not be eligible to borrow Graduate PLUS Loans after 2025–2026 if they:
- Change degree level (for example, from a master’s to a doctoral program)
- Change programs (such as law to business, or engineering to physics)
Other Eligibility Requirements
To qualify for any continued Graduate PLUS borrowing after the 2025-2026 academic year, students must have borrowed and received a federal Direct Loan (either a Direct Unsubsidized Loan or a Graduate PLUS Loan) prior to July 1, 2026. Students will lose any remaining Graduate PLUS eligibility if they withdraw from their program or take a term away. Eligibility does not pause and resume.
New Unsubsidized Graduate Loan Limits
Effective July 1, 2026 (excluding undergraduate loan amounts):
| Annual (Academic Year) Limit | Aggregate (Lifetime) Limit | |
| Graduate Students | $20,500 | $100,000 |
| Professional* Students | $50,000 | $200,000 |
*University of Illinois Urbana-Champaign professional programs include the Carle Illinois College of Medicine, College of Law, and College of Veterinary Medicine.
Parent PLUS Loan Limits
Undergraduate student loans (Subsidized and Unsubsidized) are NOT changing; however, Parent PLUS Loans offered to undergraduate students will have a new annual academic year limit of $20,000, and an aggregate (lifetime) limit of $65,000. This is effective July 1, 2026 for the 2026-2027 school year and beyond.
Who May Still Be Eligible to Borrow Parent PLUS Loans Up to Cost of Attendance/No Aggregate (Lifetime) After 2025–2026 (“Legacy” Provisions)
Parents who borrowed in 2025-2026 or before can continue to borrow under current limits (up to annual Cost of Attendance minus other aid) for a maximum of 3 years (2026-2027, 2027-2028, and 2028-2029), or until the student has reached the maximum length of their program*, or until their student graduates—whichever comes first.
*Undergraduate students will remain eligible for legacy provisions if they change their major within the university.
Students who transfer into the university from another institution, even if it is the same major at both schools, are NOT eligible for legacy provisions since this is considered a change in program and are subject to the new Parent PLUS Loan annual and aggregate limits.
Students will lose eligibility for any remaining extended eligibility for Parent PLUS Loans at 2025-2026 limits if they withdraw from or are not enrolled in 2026-2027, 2027-2028, or 2028-2029 even if they would otherwise be eligible. For example, if a student who is eligible for legacy provisions in Parent PLUS Loan limits is enrolled in fall 2026, spring 2027, and through fall 2027, but does NOT enroll in spring 2028, they would not be eligible for 2025-2026-level limits when returning to their program in fall 2028. They could then only borrow up to $20,000 in a Parent PLUS Loan in 2028-2029, and all previously borrowed Parent PLUS Loans would count toward the $65,000 aggregate (lifetime) limit.
A parent who has previously borrowed a Parent PLUS Loan may continue borrowing for a student who has been continuously enrolled and has not exceeded the standard program length, generally four years. This applies even if the student was enrolled part‑time. All enrollment time—full‑time or part‑time—counts toward the total program length.
Examples:
- If a student has been continuously enrolled for three years, the parent may borrow a Parent PLUS Loan under legacy provisions (up to COA minus other aid; no aggregate limit) for one additional year.
- If a student has been continuously enrolled for two years, the parent may borrow a Parent PLUS Loan (up to COA minus other aid; no aggregate limit) for up to two additional years.
- Students who stop out a semester will no longer be eligible for legacy provisions and their Parent’s PLUS loan eligibility will be capped at $65,000 including previously borrowed PLUS loans.
- If a student (whose parents have borrowed a total of $70,000 in Parent PLUS Loans at the end of the 2025-2026 year) is eligible for legacy provisions during their junior year in 2026-2027 but withdraws from spring 2027, they are no longer eligible for legacy provisions (no annual limit in a Parent PLUS Loan), and all previously borrowed Parent PLUS Loans count toward the aggregate (lifetime) limit of $65,000. A student in this scenario would not longer be eligible to borrow Parent PLUS loans for the remainder of their program.
Part-Time Enrollment and Loan Eligibility
Federal direct loans are required to be prorated (reduced proportional to enrollment) for students enrolled less than full-time beginning with the 2026-2027 academic year. This reduction may occur even if the student’s billed hours do not change.
Students must be enrolled full-time across both fall and spring semesters in order for loans to not be prorated. For undergraduate and professional students, 12 hours is full-time per semester, so a student’s total enrollment across the academic year (fall and spring) must equal or exceed 24 hours to receive their full subsidized and unsubsidized loans. For graduate students, full-time is 8 hours per semester, so the total enrollment across the academic year (fall and spring) must equal or exceed 16 hours to receive their full Unsubsidized loans.
Examples:
- An undergraduate student enrolls in 12 hours in the fall semester, and after the 10th day, drops a 3 hour class so they are enrolled in 9 hours. In the spring semester, they register for and complete 15 hours. Fall enrolled hours 9 + spring enrolled hours 15 = 24 so loans are NOT prorated.
- An undergraduate student enrolls in 15 hours in the fall semester, and after the 10th day, drops to 9 hours. In the spring semester, they register for and complete 12 hours. Fall enrolled hours 9 + spring enrolled hours 12 = 21, so loans MUST BE prorated.
More information on this process will be available during summer 2026. All students receiving federal loans will be subject to the new proration requirements beginning in 2026-2027. Loans that are required to be prorated will result in the loan being reduced or canceled, which will result in a balance owed the student’s university account.
Changes to Federal Loan Repayment
For loans disbursed after July 1, 2026, income-driven repayment plans will be replaced by a new Repayment Assistance Program (RAP). Borrowers of loans disbursed after July 1, 2026 will be able to choose RAP or a standard 10-year or 25-year repayment plan.
Borrowers of loans disbursed before July 1, 2026 will have the option to remain in existing income-driven repayment plans (IBR, PAYE, SAVE) but must enroll by June 30, 2028. They will be moved to RAP if they miss this deadline.
Please note that OSFA generally recommends that borrowers contact their loan servicer(s) or review information available from the Department of Education concerning federal loan repayment.
Pell Grant Changes
The University of Illinois Urbana-Champaign does not currently offer the type of programs that are impacted by changes to Pell eligibility.
Updated Information
The Office of Student Financial Aid (OSFA) and the University of Illinois are tracking changes and will update this website as more or new information or official guidance from the Department of Education becomes available. We appreciate your patience as we navigate these changes and share what we learn with our students!
Last updated: May 15, 2026