One Big Beautiful Bill Act effects

Beginning July 1, 2026, Parent PLUS Loans will be limited to $20,000 per year with a $65,000 lifetime aggregate limit. Previously, Parent PLUS Loans were not capped and could be borrowed up to the student’s full Cost of Attendance.

These limits apply per dependent student. Parents with more than one dependent student may borrow up to the annual and aggregate limits for each student. The limits are tied to the student, not the number of parent borrowers. Even if two parents choose to borrow on behalf of the same student, the combined total cannot exceed $20,000 per year or $65,000 overall for that student. 

Please note that Saint Martin’s is allowed to set institutional annual loan limits less than $20,000 per year to support students' academic timeframe it takes to complete a standard 4-year program. 

Legacy Provision

If a student has received a Parent PLUS Loan disbursement before July 1, 2026 while enrolled in a qualifying program, the parent borrower may continue borrowing Parent PLUS Loans under previous loan limits for three academic years or until the student completes their program, whichever is sooner. 

Beginning July 1, 2026, students with a Student Aid Index (SAI) equal to or greater than twice the maximum Pell Grant award ($7,395) will not qualify for Pell. For example, based on the 2025-2026 maximum award, this would mean an SAI of $14,790 or higher would make a student ineligible. 

Because all of your federal loans must be repaid under the same repayment plan, your borrower status depends on when you took out your loans and whether any remain outstanding. Each case will be different for every student.

New Borrower 

You are considered a new borrower if:

• You did not take out any federal loans before July 1, 2026; or 

• You took out loans before July 1, 2026, but they have all been paid in full. 

Active Borrower 

You are considered an active borrower if:

• You were enrolled in a program of study as of June 30, 2026, and 

• You received a Direct Loan for that same program before July 1, 2026, and that loan has not been fully repaid. 

As of July 1, 2026, graduate students continue to be eligible to borrow $20,500 annually in unsubsidized loans. The lifetime aggregate limit for all graduate loans is now $100,000. These loan limits apply to new student borrowers who are not considered active borrowers under the federal student loan program. Graduate loan limits do not reset when starting a new degree or program.

Legacy Provision

Students who received a federal student loan disbursement before July 1, 2026, while enrolled in an eligible program of study, may continue borrowing under the current loan limits. This legacy eligibility remains in effect for up to three academic years or until the student completes their eligible program, whichever occurs first. 

Effective July 1, 2026, the Graduate PLUS Loan Program has been discontinued entirely for all new borrowers. Graduate PLUS Loans currently allow graduate students to borrow up to the Cost of Attendance for their program.

Legacy Provision

If a student received a Graduate PLUS Loan that was disbursed before July 1, 2026, while enrolled in an eligible program, they may continue to borrow under the previous loan limits for up to three academic years or until they complete their program, whichever comes first. 

Changing programs, taking a leave of absence, including a university approved one, or making other enrollment changes to your courses could affect eligibility under this legacy provision. 

Because all of your federal loans must be repaid under the same repayment plan, your borrower status depends on when you took out your loans and whether any remain outstanding. Each case will be different for every student.

New Borrower 

You are considered a new borrower if:

• You did not take out any federal loans before July 1, 2026; or 

• You took out loans before July 1, 2026, but they have all been paid in full. 

Active Borrower 

You are considered an active borrower if:

• You were enrolled in a program of study as of June 30, 2026, and 

• You received a Direct Loan for that same program before July 1, 2026, and that loan has not been fully repaid.

Effective July 1, 2026, the One Big Beautiful Bill establishes a $257,500 aggregate lifetime limit on all federal student loans borrowed by a student. This limit includes the total potential borrowing capability for a student to pursue graduate and professional studies, if desired. This total does not include Parent PLUS Loans, since those are borrowed by parents on behalf of the student.

Legacy Provision

Students who received a federal student loan disbursement before July 1, 2026, while enrolled in an eligible program of study, may continue borrowing under the current loan limits. This legacy eligibility remains in place for up to three academic years or until the student completes their eligible program, whichever occurs first. 

Starting July 1, 2026, federal loan limits will be prorated based on a student’s enrollment level, like how grant and institutional aid are adjusted. This means borrowers enrolled less than full-time (i.e., 12 credits for UG and 6 credits for GR) may only borrow amounts proportional to their credit load and must be enrolled at least half-time to qualify. 

We anticipate additional guidance from the Department of Education regarding the specific proration calculations. 

Because all of your federal loans must be repaid under the same repayment plan, your borrower status depends on when you took out your loans and whether any remain outstanding. Each case will be different for every student.

New Borrower 

You are considered a new borrower if:

• You did not take out any federal loans before July 1, 2026; or 

• You took out loans before July 1, 2026, but they have all been paid in full. 

Active Borrower 

You are considered an active borrower if:

• You were enrolled in a program of study as of June 30, 2026, and 

• You received a Direct Loan for that same program before July 1, 2026, and that loan has not been fully repaid.