Federal Aid Changes

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, through the budget reconciliation process and finalized regulations were posted May 1, 2026. This legislation contains provisions that reshape student financial aid, including significant changes to the federal student loan programs. Most provisions become effective for periods of enrollment beginning on or after July 1, 2026.

This resource was created to help you understand what is changing, when the changes occur, and what it means for current and future student borrowers. All information is based on the most up-to-date guidance. You may also review Federal Student Aid directly.

*Last updated: May 14, 2026

New Rules for Graduate and Professional Student Loans

The elimination of the Direct Grad PLUS Loan for students who have not previously had a Direct Unsubsidized or Grad PLUS loan disbursed for their current program prior July 1, 2026

Current (Legacy Borrower) Graduate/Professional Loan Limits

Grade Level	Academic Year Total	Max Lifetime Limit
MS/EdD	$20,500	$138,500*
DC	$33,000	$224,000*

*Includes all Subsidized & Unsubsidized Loans borrowed at any grade level

New Graduate/Professional Loan Limits

Grade Level	Academic Year Total	Max Lifetime Limit
MS/EdD	$20,500	$100,000*
DC	$50,000	$200,000*

*Includes all Subsidized & Unsubsidized Loans borrowed at the Graduate/Professional grade level

New maximum lifetime limit of $257,500 for any grade level of all federal Subsidized, Unsubsidized and Grad PLUS loans combined, excluding Parent PLUS loans
Legacy provisions allow many current borrowers (prior to July 1, 2026) to continue with the current loan limits and the Grad PLUS loan for a limited period of time

Graduate and Professional FAQs

I am starting a new DC program, MS program or EdD program in Fall 2026. What loans am I eligible for?

If you start a new graduate or professional program in Fall 2026, you will be considered a new borrower under the new federal rules.

If I borrowed Federal Direct loans for a previous undergraduate or graduate degree, what loans am I eligible for if I am starting a new graduate or professional program?

Graduate (MS or EdD): The new regulations state to be a legacy borrower, you must have borrowed Direct loans before July 1, 2026 in your current graduate program of study. If you are not a legacy borrower, you will be eligible for $20,500 per year, with an aggregate limit of $100,000. This limit includes any prior Direct Unsubsidized loans you borrowed for graduate programs. The Grad PLUS loan will not be available.

Professional (DC): The new regulations state that to be a legacy borrower, you must have borrowed Direct loans before July 1, 2026 in your current professional program of study. If you are not a legacy borrower, you will be eligible for $50,000 per year, with an aggregate limit of $200,000. This limit includes any prior Direct Unsubsidized loans you borrowed for graduate programs. The Grad PLUS loan will not be available.

Since the Direct Grad PLUS loans will be eliminated for new borrowers, what are my other loan options?

Private Student Loans: These are offered by private lenders, banks, and credit unions. The terms can vary depending on the lender and normally require a credit check. It is important to compare interest rates, repayment terms, and borrower protection policies offered by each lender. You can learn more by reviewing our list of Logan’s preferred lenders.

Who is classified as a Legacy borrower?

To be classified as a legacy borrower you must meet the following provisions:

You are enrolled in a degree program* with Logan University during Summer 2026 trimester
You received at least one Direct Unsubsidized or Direct Grad PLUS loan disbursement before July 1, 2026
You maintain continuous enrollment in that same degree program without withdrawing or taking a leave of absence

*We do not know what this means if you are enrolled in two different degree programs at the same time, such as the DC program and an MS program. Currently, in this case, the DC program is considered your primary program. The primary program is the only one that we can be sure may qualify for legacy borrowing.

If I am classified as a Legacy Borrower, what does that mean?

You may continue to borrow federal student loans under the federal loan programs originally available to you when you started your degree program for up to 3 additional academic years or until your Expected Time to Credential (whichever comes first).

The current (legacy borrower) federal student loan limits (annual and aggregate) continue to apply. For example, graduate and professional students may continue to apply for the Grad PLUS loan to finance their expenses for the 2026-2027 school year.

To maintain eligibility for legacy classification, you must be continuously enrolled in that same degree program with Logan University. Once you change your degree program or transfer to another school (even if within same degree) you lose your legacy status and you will transition to the new federal limits.

What does Expected Time to Credential mean?

Federal rules limit how long a student may continue borrowing under legacy provisions.

For DC students, beginning July 1, 2026, your expected time to credential is defined as the lesser of:

Three years, or
Ten total trimesters minus the number of trimesters enrolled in the DC program as of July 1, 2026

Examples:

Student enrolled for eight trimesters as of July 1, 2026
- Eligible for two more trimesters of legacy borrowing
- Borrowing after those two trimesters will transition to the new federal limits
Student enrolled for 10 or more trimesters as of July 1, 2026
- Transitions to new federal limits

For EdD and MS Students, beginning July 1, 2026, your expected time to credential is defined years. Most programs are one-year in length, or three trimesters. If you have been enrolled for more than one year, you will transition to the new loan limits after July 1, 2026.

I am enrolled as a DC student this year and plan to attend a graduate program after July 1, 2026. How will the new loan limits and Grad PLUS changes impact me next year?

The new regulations are based on any newly started programs beginning July 1, 2026. If you are already attending Logan University and start a new program next year, you will not have access to Grad PLUS loan for that new degree program, and the new federal limits will apply to you.

New Rules for All Students

Schedule of Reduction (SOR) for Less Than Full-Time Enrollment
- Students enrolled less than full-time (part-time) will have their loans prorated based on the number of credits; this means part-time students may only qualify for a portion of the annual loan limit
- Students must be enrolled at least half-time in degree seeking courses to have some federal loan eligibility. Enrollment less than half-time does not meet federal requirements for loan eligibility.
- Logan’s Definition of Full-time vs Part-time enrollment

Program	Full-time Enrollment	Part-Time Enrollment
Doctor of Chiropractic	12 or more credit hours	6-11 credit hours
EdD & Masters	9 or more credit hours	5-8 credit hours
Undergraduate	12 or more credit hours	6-11 credit hours

Repayment Changes Apply to All Borrowers
- Students who borrow a new federal Direct Loan on or after July 1, 2026, will be eligible for only two repayment plans:
  1. Tiered Standard Repayment
    - Fixed monthly payments
    - Repayment term length ranges from 10 to 25 years, based on the amount borrowed
  2. Repayment Assistance Plan (RAP)
    - Monthly payments based on income
    - Loan forgiveness after 30 years of repayment
    - Is a qualifying plan for Public Service Loan Forgiveness
Deferment or Forbearance Eligibility
- As of July 1, 2027, economic hardship and unemployment deferment will no longer be available. There will still be a forbearance option, but it is limited to 9 month increments during a 24-month (2 year) period.

What repayment plans will be available if ALL my loans were borrowed prior to July 1, 2026?

You may remain or enroll in current Standard, Income-Based (IBR), Graduated, or Extended repayment plans. Starting July 1, 2026, you may choose to enroll in new Tiered Standard Repayment or RAP.

What if I am already on an income-driven repayment plan such as Income-Contingent Repayment (ICR), Pay as you Earn (PAYR), or Saving on a Valuable Education (SAVE) plan?

Borrowers currently enrolled in ICR, PAYE, or SAVE, will be required to transition to the new Standard Repayment, IBR, Graduated, Extended, or RAP by July 1, 2028.

What if I have loans prior to July 1,2026, and plan to borrow more after July 1, 2026? What payment plans will I have access to?

You will have access to the new Tiered Standard Repayment Plan or RAP.

Parent PLUS Loan Changes

What are the changes to the Parent PLUS Loan?

There are new loan limits for new borrowers. A new borrower is a parent borrowing a federal Direct PLUS Loan on or after July 1, 2026. The new loan limits are:

- All parents (combined) may borrow $20,000 total per year per dependent student.
- $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).

The Logan Financial Aid Team is here to help you navigate student aid, loan eligibility and making a plan. Please reach out to us financialaid@logan.edu or 877-408-6956.