On July 4, 2025, the President signed H. R. 1 (One Big Beautiful Bill Act) into law and made several changes to federal student aid programs. We are awaiting further guidance from the U. S. Department of Education to better understand the impacts of this legislation, its effects on students, and its future implementation. We will update this page as new information becomes available, and we receive official guidance from the U.S. Department of Education.
As of November 2025, we know that the changes will not affect the 2025-2026 academic year and are not scheduled to go into effect until July 1, 2026.
As we await further guidance, we will continue to support our students by processing and disbursing financial aid based on federal, state, and institutional rules and regulations. We appreciate your patience as we navigate these changes.
You are encouraged to contact us if you have any questions or concerns about financial aid.
2026-2027 financial aid changes
The following changes were made to financial aid programs, impacting both undergraduates and graduates. These will not go into effect until July 1, 2026.
Undergraduate Students
Student loan proration
Undergraduate students enrolled less than full time (12 credits) will have their student loans prorated based on actual enrollment levels.
Student loan limits
All students can borrow up to $257,500 in their lifetime on all federal student loans*. This excludes borrowed Parent PLUS loan amounts.
*Note: For information on current annual loan limits, please visit the Federal Student Aid website.
Parent PLUS loan limits
Parents can borrow up to $20,000 per year per dependent student or $65,000 lifetime per dependent student in Parent PLUS loans. If a borrower has a Parent PLUS loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program**, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
**Note: This may be dependent on the student remaining in the same major/program of study. We have not received guidance to clarify.
Graduate and Professional Students
Student loan limits
The following changes were made to student loan limits:
- Graduate students can borrow up to $20,500 per academic year or an aggregate maximum of $100,000 (this does not include undergraduate loans).
- Professional students can borrow up to $50,000 per academic year or an aggregate maximum of $200,000 (this does not include undergraduate loans). We are awaiting guidance from the U. S. Department of Education on which specific University of Minnesota programs are considered “professional.”
- All students can borrow up to $257,500 lifetime on all federal student loans.
Graduate PLUS loans
Graduate PLUS loans will be eliminated starting on or after July 1, 2026. Students who have previously borrowed at least one federal loan prior to this date will have access to Graduate PLUS loans for the remainder of their academic program or for 3 academic years, whichever is less.
Student loan proration
Graduate and professional students enrolled less than full time (varies per program) will have their student loans prorated based on actual enrollment levels.
Repayment and Public Service Loan Forgiveness (PSLF)
Repayment plans
The following changes were made to repayment plans:
- Eliminated Saving on a Valuable Education (SAVE) plan.
- Implemented Repayment Assistance Plan (RAP) with rates 1% to 10% of discretionary income.
- Extended forgiveness periods to 30 years.
- Introduced minimum monthly payments.
Public Service Loan Forgiveness (PSLF)
Medical and dental internships and residencies can continue to count towards Public Service Loan Forgiveness (PSLF).