Federal Loan Updates

Beginning July 1, 2026

Planning ahead, together. Federal student loan changes connected to the implementation of the One, Big, Beautiful Bill Act will roll out over time, with several key changes expected to begin for periods of enrollment starting on or after July 1, 2026. We’ll keep this page updated as federal guidance is released, and we’ll always explain what it mean in plain language.

Federal Loan Limit changes

Undergraduate students may be eligible for up to $20,000 per year in Parent PLUS Loans, with a $65,000 aggregate limit. Students who previously received a Parent PLUS Loan may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their program, whichever is less.

Graduate PLUS Loans have been eliminated for new borrowers. Existing Mercer borrowers may retain eligibility for up to three academic years or the remainder of their program, whichever is less.

Graduate students may be eligible for up to $20,500 per year in Direct Unsubsidized Loans, with an aggregate limit of $100,000. Existing Mercer borrowers may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their program, whichever is less.

Professional students may be eligible for up to $50,000 per year in Direct Unsubsidized Loans, with an aggregate limit of $200,000.

Less-than-Full-Time Proration (starting July 1, 2026)

Beginning July 1, 2026, federal guidance discussed for these changes includes adjusting (reducing) annual loan eligibility based on enrollment intensity. A common formula shown uses: credits enrolled for the academic year divided by credits considered full-time for the academic year (for the program).

Example : 21 credits out of 24 full-time credits = 87.5% of the annual limit.

What you’ll see from us: If this applies to you, we’ll show it clearly in your award notice and help you plan before disbursement.

What the new loan limits mean for students:

If you are currently enrolled in a program of study and have borrowed a Federal Direct Loan prior to July 1, 2026, the new loan rules will not apply right away. Instead the current (“legacy”) limits will continue to apply during your expected time to complete your current program, up to a maximum of 3 years, as long as you remain continuously enrolled in your current program.

Annual Direct Loan limits

You can continue under the current annual limits during the transition period

PLUS Loan availability

Grad PLUS: Students who qualify for this transition can continue to access Grad PLUS under the current loan program.
Parent PLUS: Parents of dependent undergraduates can continue to borrow up to Cost of Attendance minus other aid under the current loan program during the transition period.

Keep your eligibility (enrollment matters)

If a student withdraws or ceases enrollment, they generally lose the limited transition treatment and are treated under the post–July 1, 2026 rules when they return.
An approved leave of absence does not count as a withdrawal for these purposes.

New Annual Direct Limits (by student level)

Undergraduate (no changes): $5,500 — $12,500
Graduate Unsubsidized: $20,500
Professional unsubsidized (based on the NEW federal definition): $50,000

Lifetime Aggregate Limits (by student level)

Undergraduate (no changes): $31,000 — $57,500
Graduate (not including undergraduate): $100,000
Professional (combined grad/prof; not including undergraduate): $200,000

Lifetime Direct Loan Limit (excluding PLUS)

$257,500 lifetime Direct Loan limit, counted on the original amount borrowed even if repaid, forgiven, canceled, or discharged.

PLUS Loans

Graduate PLUS: eliminated for periods of enrollment beginning on or after July 1, 2026.
Parent PLUS: subject to new limits (annual and aggregate)
- Annual: $20,000 per student
- Aggregate: $65,000 per student (based on original amount borrowed).

“Professional” is a federal borrowing definition tied to program characteristics and specific 4-digit CIP groupings (not a statement about the value of your program or career).

Examples include:

Medicine : M.D., D.O. (51.12)
Pharmacy: Pharm.D. (51.20)
Law : J.D., L.L.B. (22.01)
Theology: M.Div., M.H.L. (39.06)
Clinical Psychology: Psy.D., Ph.D.

New borrowers in these programs on or after July 1, 2026 will be subject to the new loan limits for professional students.

Contact Us for Help!

We can help you:
- Confirm what applies based on your enrollment, program, and prior Direct Loan disbursement.
- Understand how enrollment changes may affect borrowing.
- Build a plan that supports your path to graduation.

Disclaimer

Due to the significant amount of changes that are occurring, portions of our website may not yet be 100% accurate. We’ll continue to update this page as we receive more information from the Department of Education and Federal Student Aid, and appreciate your patience as we work to implement the changes brought by the One, Big, Beautiful Bill Act.

Please contact the Office of Student Financial Planning at financialplanning@mercer.edu for any inquiries or further clarification.

Federal Student Loan Updates