Changes to Federal Financial Aid
On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (OBBBA) which enacted major changes to the U.S. tax code, as well as to federal programs that receive mandatory funding, such as federal student loans. We realize many families have concerns about how these changes might affect their ability to pay for college after July 1, 2026. This page will answer many of these questions, and will be updated as more information becomes available.
Quick Summary of Changes
- A reduction in the annual and aggregate limit on Parent PLUS Loans for undergraduate students (some active borrowers may still qualify for the current limits for a limited period of time)
- Proration of the Federal Direct Stafford Loan for less than full time enrollment
- The elimination of the Graduate PLUS Loan (some active borrowers may still qualify for a limited period of time)
- The replacement of most existing income-driven repayment plans with a revised Standard Plan and the Repayment Assistance Plan (RAP).
For the purposes of this FAQ, the following definitions apply:
New borrower: A student with no loans taken out prior to July 1, 2026 or all loans taken out during that time have been paid in full, or a student who took a leave or changed programs or institutions.
Active borrower: A student is enrolled in a program of study at Brandeis as of June 30, 2026; and a direct loan was disbursed for said program of study prior to July 1, 2026 and has not been paid off.
*Time to Completion of Degree: The program length for the program of study in which the individual is enrolled minus the period of such program of study that such individual has completed..
Less than half time: Any student attempting less than 6 credits in a given term (4.5 credits for GPS students).
Disclaimer: The content on this page reflects our current interpretation of federal loan regulations but is not an official or binding statement of policy. Students are urged to consult the U.S. Department of Education’s official publications and website (studentaid.gov) for definitive guidance. We will update and add to this page as additional guidance is received from the U.S. Department of Education. Brandeis does not have the ability to grant exceptions to federal regulations, including those concerning enrollment, legacy provisions or federal loan eligibility.
FAQ's for Undergraduate Students & Parents
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Yes. Eligible undergraduate students can still qualify for federal loans.
Beginning July 1, 2026, students enrolled less than full time are subject to loan proration based on enrollment. Students enrolled less than half time are not eligible for federal student loans.
If a student or parent active borrower has any federal loans disbursed before July 1, 2026, the parent can continue to borrow up to the full Cost of Attendance, minus any other financial aid, for three academic years or the student's completion of their degree*, whichever is less.
For new borrowers, eligible parents of dependent undergraduate students can borrow up to $20,000 annually in Parent PLUS Loan, and are also subject to a $65,000 lifetime aggregate limit per dependent student.
Parents and their students may research and apply for private student loans if they require additional funding. Your financial aid package can contain both a Parent PLUS Loan and a private loan. This ELMSelect page compares a number of the most-utilized private student loans, but families may borrow from any lender that offers student loan options.
Brandeis also offers a
monthly payment plan that can be used on its own or in conjunction with student or parent loans.
No. For an undergraduate student to borrow additional unsubsidized loan funds, exceptional circumstances (such as an adverse credit history) must prevent their parent from borrowing a PLUS Loan. Reaching the aggregate borrowing limit is not an exceptional circumstance.
No. Current guidance says that students who withdraw or take a leave from their program will lose access to the legacy provisions immediately.
There are no extensions to the three-year legacy provisions so at the end of that period you will be subject to the new annual and aggregate loan limits.
The new law replaces most existing income-driven repayment plans with a new framework for federal student loan repayment. Your repayment options will be limited to a revised Standard Plan and the Repayment Assistance Plan (RAP).
The new law replaces most existing income-driven/income-based repayment plans. If you are using an income-driven/income-based repayment plan, taking a new Parent PLUS loan after July 1, 2026, causes
all existing parent loans to lose eligibility for these repayment options and revert to a standard repayment plan. Your repayment options will be limited to a revised Standard Plan and the
Repayment Assistance Plan (RAP). Additionally, please consider that taking a new Parent PLUS loan after July 1, 2026 may render you ineligible for Public Service Loan Forgiveness (PSLF).
FAQ's for Graduate Students
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Eligible graduate students can borrow up to $20,500 annually.
For graduate students who are active borrowers, the lifetime aggregate limit is $138,500. These lifetime amounts include any subsidized and unsubsidized loans borrowed at the undergraduate level.
For students who are new borrowers, the lifetime aggregate limit is $100,000. These lifetime amounts do not include any subsidized and unsubsidized loans borrowed at the undergraduate level.
No. Current guidance says that students who withdraw or take a leave from their program will lose access to the legacy provisions immediately.
If the student is an active borrower (Federal Unsubsidized or Grad PLUS) in their current academic program, the student can continue to borrow for three academic years or the student's completion of their degree*, whichever is less.
After July 1, 2026, new graduate and professional student borrowers are not eligible for the Graduate PLUS Loan program.
Yes. Federal loans will be prorated based on enrollment below full time (12 credits for all non-GPS programs, 9 credits for GPS programs).
Graduate and professional students continue to have access to private student loans from a variety of lenders. Please visit our ELMSElect site to compare terms and conditions from lenders that Brandeis students have utilized in the past.
Brandeis also offers a
monthly payment plan that can be used on its own or in conjunction with student loans.
The new law replaces most existing income-driven repayment plans with a new framework for federal student loan repayment. Your repayment options will be limited to a revised Standard Plan and the
Repayment Assistance Plan (RAP).