2026-27 Changes to Federal Financial Aid
Last updated on April 23, 2026
Congress passed the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which introduced changes to several federal aid programs. Most of these changes become effective on July 1, 2026, and will impact students for the 2026-27 school year.
Please note that the information included below reflects the most current guidance available and is subject to change. The Office of Student Financial Aid will continue to make updates regarding the scope and impact of these changes as we receive additional guidance.
Federal Pell Grant Program
The following changes to the Federal Pell Grant Program take effect on July 1, 2026, for the 2026-27 academic year:
Students who receive grants, waivers or scholarships from non-federal sources (UToledo, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
Students with a Student Aid Index (SAI) equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
Federal Parent and Graduate PLUS Loan Programs
The following changes take effect on July 1, 2026, for the 2026-27 academic year.
Parent PLUS Loan Program
For a Parent PLUS Loan Program, a parent of an undergraduate student may borrow up to $20,000 per year per dependent student with a $65,000 aggregate limit per dependent student without regard to amounts forgiven, repaid, cancelled or discharged.
Legacy provision: If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the student is enrolled in a program of study, 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 completion, whichever is less. Note: Transferring schools, withdrawing from all courses, ceasing enrollment or changing degree type (such as associate’s degree to bachelor’s degree) may negate eligibility for the legacy provision. Contact Rocket Solution Central (RSC) to discuss the implications of academic plan adjustments.
Graduate PLUS Loan Program
The Graduate PLUS loan program has been eliminated.
Legacy provision: Graduate student borrowers with a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, can continue to borrow from the program for 3 academic years or the remainder of their expected time to completion, whichever is less. Note: Transferring schools, withdrawing from all courses, ceasing enrollment or changing degree program may negate eligibility for the legacy provision. Contact Rocket Solution Central (RSC) to discuss the implications of academic plan adjustments.
Federal Direct Loan Program
The following changes take effect on July 1, 2026, for the 2026-27 academic year.
Graduate and Professional Student Annual and Aggregate Loan Limits
The maximum amount that may be borrowed per academic year (annual limit) is $20,500 for a graduate student and $50,000 for a professional student*. The maximum amount that may be borrowed for graduate study (aggregate limit) is $100,000 for graduate students and $200,000 for professional students and does not include amounts borrowed as an undergraduate. Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and professional school.
*A professional student is a student enrolled in a program of study that awards a professional degree upon completion of the program. As of the last update to this page, professional programs for purposes of borrowing under the Direct Loan Program include: Pharmacy (Pharm D), Dentistry (DDS or DMD), Veterinary Medicine (DVM), Chiropractic (DC or DCM), Law (LLB or JD), Medicine (MD), Optometry (OD), Osteopathic Medicine (DO), Podiatry (DPM, DP, or PodD), Theology (MDiv or MHL), and Clinical Psychology (PsyD or PhD).
Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less.
Lifetime Loan Limits
The lifetime borrowing limit on all federal loans, excluding Parent PLUS loans is $257,500.
Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less.
Loan Reduction for Less-than Full-time Enrollment
Schools must prorate annual loan amounts in direct proportion to the percent of full-time status for which the student is enrolled. Details on this provision will be shared when final rules are published by the US Department of Education (ED).