2026-2027 Financial Aid Updates (OB3)
LENDING RESOURCES
ELM Select
ELM Select is a third-party site that provides a neutral, comprehensive list of private education loan lenders that Loyola students have borrowed from within the past three years, listed in random order. Students are not obligated to borrow only from the lenders listed. Loyola will process alternative loans from lenders who are not listed.
The Louisiana Education Loan Authority (Lela)'s mission is to make higher education more accessible and affordable for the people of Louisiana. These loans offer additional student loan options for undergraduate and graduate students and families.
OTHER RESOURCES
Scholarship Universe
Students are encouraged to consider opening a profile with Scholarship Universe through Loyola’s Office of Scholarship and Grants. This resource matches students with external scholarships from around the U.S. based on their personal profile. For more information, please visit their website or contact osg@loyno.edu.
Loan Education
CFPB: “Choosing a loan that’s right for you.”
CFPB: “Your financial path to graduation.”
Federal Student Aid Loan Simulator
AccessLex Student Loan Calculator (For Law Students)
Frequently Asked Questions
P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA) or the reconciliation bill, signed July 4, 2025, includes significant reforms to federal student aid programs. It changes the eligibility and amounts for Pell Grants, sets new limits for federal student loans (including the phase-out of Grad PLUS), requires loan proration for less than full-time enrollment, and introduces a new income-driven repayment option.
Most changes are scheduled to begin in the 2026–27 academic year and will be rolled out gradually. Some implementation details still require federal rulemaking, so we’ll share more information as it becomes available.
No.
If you're currently receiving aid or are in repayment, your loans and grants remain under their present terms for now.
Most changes, including new loan limits, loan proration for less-than-full-time enrollment, and new repayment options, apply starting in the 2026–27 academic year.
Final regulations took effect July 1, 2026. Loyola continues to monitor the U.S. Department of Education guidance, particularly regarding the professional-program definition litigation described below, and will update this page as details are finalized. (Updated: August 17, 2026)
Lifetime Direct Loan borrowing cap
- $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.
Parent PLUS Loan borrowing cap
- Annual cap: $20,000 per year per student.
- Lifetime cap: $65,000 per student—for parents borrowing under PLUS.
Important Note: Students who borrow the maximum amount of $20,000 per year may run out of PLUS eligibility by their senior year due to the $65,000 lifetime limit.
Lifetime Direct Loan borrowing cap
- $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.
Annual Direct Unsubsidized Loan limits
- Graduate degrees: max $20,500/year, aggregate cap $100,000.
- Professional degrees: max $50,000/year, aggregate cap $200,000.
Loyola's J.D. program is confirmed as a professional degree program under federal regulation and is eligible for the higher $50,000/year limit.
For other programs, see “Is my program a Professional or Graduate program?” below; this determination is currently affected by ongoing litigation.
IMPORTANT NOTE: The Grad PLUS Loan program is eliminated for new borrowers after July 1, 2026.
If you're currently enrolled and participating in the student and/or parent loan programs at Loyola, there are no changes to the aid you've already received.
If you borrowed a federal student loan at Loyola for a term that began before July 1, 2026, you remain eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter), including Graduate PLUS loans.
If your parent borrowed a Parent PLUS loan at Loyola for a term that began before July 1, 2026, your parent remains eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter).
To be eligible for the previous loan limits (including Grad PLUS), you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.
Yes.
Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on (APP-25-23) 2026–27 FAFSA Form and Pell Grant Eligibility Updates.
Students whose full cost of attendance is covered by non-federal grants or scholarships are also no longer eligible for a Pell Grant, even if otherwise eligible.
Most changes took effect starting with the 2026–27 academic year, beginning July 1, 2026. That includes new loan limits, the phase-out of Grad PLUS, loan proration for less-than-full-time enrollment, new repayment plan options, and changes to Pell Grant eligibility.
No, federal loan and aid changes under the new law will not affect your scholarships. Scholarships are awarded and renewed based on university policies and program criteria. If changes to federal aid affect your overall funding, we encourage you to contact financial aid to review other possible options.
Anyone who did not take out a loan during their current program study and before July 1, 2026 or will be starting a new degree program in the 26/27 academic year.
Credit based private loans can be used to fill the gaps that aren't covered by Federal loans. We encourage students to review the ELM Select as a starting point.
Grad PLUS Loans are being phased out under the new law.
New graduate and professional students will no longer be eligible to borrow Grad PLUS for terms that begin on or after July 1, 2026.
If you're already borrowing Direct Loans before July 1, 2026, you may borrow Grad PLUS. To be eligible, you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.
The distinction between “graduate” and “professional” programs is defined in federal regulation (34 CFR § 668.2) and affects how much you can borrow each year.
Professional programs are typically those that signify completion of academic requirements for beginning work or practice in a given profession, are generally at the doctoral level, and lead directly to a degree required for licensure in a recognized profession, such as medicine (MD).
The federal regulations include the following programs in the definition:
- 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.)
All other post-baccalaureate programs, including most master's and PhD programs, are classified as graduate under this regulatory definition.
A note on pending litigation
The scope of this list is currently the subject of active litigation in the U.S. District Court for the District of Columbia (consolidated cases Nos. 26-1780 and 26-1941).
On June 24, 2026, the court issued a ruling that temporarily expanded the list of qualifying professional programs at some institutions to include certain health-related programs, such as Nursing (MSN/DNP), Physician Assistant, Physical Therapy, Occupational Therapy, Audiology, and Nurse Anesthetist programs.
This ruling is not final and could be reversed or modified as the litigation continues.
Loyola's current approach
Until this litigation is resolved, Loyola is continuing to award loans for programs outside the confirmed federal list above, including our Nursing programs, at the standard graduate rate ($20,500/year, $100,000 aggregate), consistent with the confirmed regulatory definition.
Loyola is not applying the temporary, litigation-dependent expansion to loan packaging at this time, in order to avoid awarding amounts that may later need to be reduced if the ruling does not stand.
If the litigation resolves in a way that confirms additional programs as “professional” on a durable basis, we will update loan amounts and notify affected students promptly.
If you have questions about how this affects your specific program, please contact the Office of Financial Aid.
Yes.
Starting with loans first disbursed on or after July 1, 2026, your annual federal loan eligibility is prorated based on your enrollment intensity if you are enrolled less than full-time.
For example, a student enrolled at 75% of full-time status would generally be eligible for approximately 75% of the standard annual loan amount for that term.
You must be enrolled at least half-time to receive any federal student loan disbursement. Parent PLUS loans are not affected by this proration rule.
If you have questions about how this applies to your specific enrollment plan, please contact the Office of Financial Aid.
The National Association of Student Financial Aid Administrators (NASFAA) maintains a topic-by-topic summary chart of the federal changes described on this page, updated July 1, 2026 to reflect the U.S. Department of Education's final rules: Federal Student Aid Changes from the One Big Beautiful Bill Act (NASFAA).
Please note: This chart was last updated July 1, 2026 and does not reflect the June 24, 2026 court ruling on professional-program classification discussed in the question above. It treats that classification as settled.
For the most current information on which programs qualify as “professional” at Loyola, refer to the question above rather than the NASFAA chart.
Yes.
For federal student loans first disbursed on or after July 1, 2026, borrowers will have two repayment plan options: a new standard repayment plan with fixed monthly payments over a term of 10–25 years (based on the amount borrowed), or a new income-driven plan called the Repayment Assistance Plan (RAP).
If you are currently repaying older federal loans, you are not immediately required to change plans, but borrowers currently enrolled in ICR, PAYE, or SAVE will need to transition to a different repayment plan (Standard, IBR, or RAP) by a federally set deadline.
If you don't make a selection, you will be moved automatically.
For help understanding which repayment options apply to your loans, use the Federal Student Aid Loan Simulator or contact the Office of Financial Aid.
We’ll post updates on this website as new details become available.
You can also:
- Contact the Office of Financial Aid with questions about your specific situation.
- Monitor announcements from the U.S. Department of Education at studentaid.gov.
- Keep an eye on school communications, as some programs may publish program-specific updates.