Grad PLUS Loans

• Students who already have already borrowed a Direct loan may retain eligibility for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming.
  • Students beginning a graduate or Doctor of Chiropractic program before July 1, 2026, may remain eligible for Grad PLUS loans under current rules. Specific transition guidance is expected but has not yet been released.
• Grad PLUS loans will be phased out beginning July 1, 2026.
  • After that date, new Grad PLUS loans will no longer be available to new borrowers.
  • Parker University is working with alternative lenders to provide loan options to fill the Grad PLUS gap.

New Graduate Unsubsidized Direct Loan Limits

*Implementation of loan limits is still outstanding. These amounts may be lower upon implementation. 

• Lifetime borrowing limits for all federal loans (undergraduate, graduate, and professional) will increase to $257,500.
• Students with existing Unsubsidized Direct Loans may continue borrowing under current limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming.

Undergraduate and Parent PLUS Loans

• No changes are expected to undergraduate loan limits at this time, though undergraduate borrowing will count toward new lifetime limits beginning July 1, 2026.
• Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student, starting July 1, 2026.
• Parents who have borrowed for their student(s) before July 1, 2026, may continue borrowing under current limits for 3 academic years or the remainder of their expected time to credential, whichever is less. Clarity on the implementation of this legacy provision is still forthcoming..

Public Service Loan Forgiveness (PSLF)

• No changes to PSLF have been made under the OBBB legislation.
• However, separate regulatory actions may introduce future adjustments to eligibility requirements.

Loan Proration for Part-Time Enrollment

• Students enrolled less-than-full-time will have their loans pro-rated based on the number of credit hours considered full time for that academic year for the program of study.
  • Full-time enrollment is defined as 16 credits for Doctor of Chiropractic programs, 6 credits for graduate programs, and 12 credits for undergraduate programs. 
• This means part-time students may only qualify for a portion of the annual loan limit.
• Additional guidance is expected to explain how this will apply to all borrowers.

Continuing Eligibility for Grad PLUS Borrowers

• Current indications suggest that a student who borrowed any Direct Loan or Grad PLUS loan in the program before July 1, 2026, may retain eligibility for Grad PLUS loans for 3 academic years or the remainder of their expected time to credential, whichever is less.
• Parker University is awaiting official ED clarification on this matter.