Starting with loans for the 2026/27 academic year, amounts available will be determined by your enrollment status. Federal Student Aid’s guidance confirms that, beginning July 1, 2026, annual loan limits for students who are enrolled less than full-time must be reduced in proportion to enrollment status.

Full-time enrollment for undergraduate students is 24 credit hours over the fall and spring semesters. For graduate programs, its 18 credit hours over the fall and spring semesters. 

In prior years, students could generally receive the full annual Direct Loan limit as long as they were enrolled at least half-time. Borrowers could also request a single semester loan and receive up to the annual loan limit in that semester. These flexibilities have been eliminated. 

Students who begin the semester as full-time and later withdraw or drop enrollment to part-time status will have their loan amounts adjusted before the next disbursement of the loan. Please be sure to read about how withdrawals affect aid eligibility.

Parent PLUS Loans remain available, but federal law now limits how much parents may borrow and the repayment options available.

New Borrowing Limits

For new Parent PLUS Loans first disbursed on or after July 1, 2026:

• Maximum annual borrowing: $20,000 per dependent student
• Maximum lifetime borrowing: $65,000 per dependent student

Interim Exception (AKA Grandfathering)
Your parent is exempt, for up to 3 years maximum, from these borrowing limits if the undergraduate student:

• was enrolled in a bachelor's degree program of study at Rowan University as of June 30, 2026;
• received at least one Direct Loan, or your parent received a Direct PLUS Loan on your behalf, for such program of study, before July 1, 2026; and
• is continuously enrolled at Rowan University in the same credential after July 1, 2026, and have not ceased to be enrolled at any point on or after July 1, 2026. 
• Undergraduate students may change majors, but must remain in a bachelor's degree program (BA or BS). 

• three academic years or
• the difference between the published length of the program of study you (or the child you’re borrowing for) are enrolled in and the period of time you (or your child) have completed in that program.

Repayment Options

Parent PLUS Loans first disbursed on or after July 1, 2026, are restricted to the new Standard Tiered Repayment Plan only. And because all loans borrowed must be repaid under the same repayment plan, taking a parent PLUS loan after July 1, 2026 will cause all of your previously borrowed PLUS loans to convert to this new repayment plan. 

The Tiered Standard Plan is not income-sensitive. Instead the monthly amount will be determined based on the overall amount owed in PLUS loans by the borrower without regard to your income or affordability of the payment amount.

Public Service Loan Forgiveness Eliminated

Parents who borrowed under the previous rules and completed the required consolidation steps before the federal deadline (July 1, 2026) may still retain access to income-driven repayment and PSLF if they otherwise meet all program requirements.

New Parent PLUS Loans first disbursed on or after July 1, 2026 (including federal consolication loans that include parent PLUS loan balances) will no longer have a pathway to Public Service Loan Forgiveness under current federal law.

If you currently have Parent PLUS Loans and work in public service, we strongly encourage you to contact your loan servicer before making any changes to your loans. Most importantly, do not borrow another parent PLUS loan after July 1, 2026.

The Graduate PLUS Loan program has been eliminated for new borrowers, subject to limited exceptions for students who qualify for transition provisions.

Interim Exception (AKA Grandfathering)

 You qualify as an eligible graduate or professional student under the interim exception only if you

• were enrolled in a program of study at a school as of June 30, 2026;
• received at least one Direct Loan for such program of study prior to July 1, 2026; and
• are currently enrolled at the same school in the same program of study for the same credential and haven’t ceased to be enrolled in the same program for the same credential at the same school at any point on or after July 1, 2026. 

If you qualify for the interim exception, you’ll be exempt from certain loan limits and loan eligibility changes for the lesser of

• three academic years or
• the difference between the published length of the program of study you are enrolled in and the period of time you have completed in that program.

If you’re a graduate or professional student and you’re considering changes to your graduate program of study, we encourage you to consult with the financial aid office to determine if that change will affect your eligibility for the interim exception.

The most sweeping changes implemented as a result of the One Big Beautiful Bill Act are to the federal loan programs available for education beyond the bachelor's degree level. 

What is the difference between a graduate student and a professional student?

• The term “graduate student” is defined as a student enrolled in a program of study that is above the baccalaureate level and that awards a graduate credential (other than a professional degree) upon completion of the program, such as the Certificate of Graduate Study, the Certificate of Advanced Graduate Study, the Master's Degree, and the Ph.D. and Ed.D. programs.

• The term “professional student” is defined as a student enrolled in a program of study that awards a professional degree upon completion of the program. A professional degree is generally at the doctoral level and requires professional licensure to begin practice in the intended field. Here at Rowan that's the MD, DO, DVM, and the Ph.D. in Clinical Psychology. As a result of ongoing court cases, this definition has been temporarily expanded to include other programs such as the Physician's Assistant program. Depending on the outcome of those court cases, guidance can change.

It is important to recognize that these program descriptions are not meant as a value judgement of the professions they prepare a student to pursue. It simply defines the amount of federal unsubsidized loan available to students enrolled in these programs. 

New Loan Limits

Students enrolled in programs that are deemed graduate level may borrow up to $20,500 each year, for a total of $100,000 not including loans borrowed as an undergraduate.

Students enrolled in programs defined as professional programs, may borrow up to $50,000 each year, for a total of $200,000, which includes any other borrowing at the graduate or professional levels.

There is a new Lifetime Loan Limit of $257,500. This limit includes all student loans, including amounts borrowed under the Grad PLUS program that was eliminated. It does not include parent PLUS loan amounts. No student may access more than $257,500 in federal education loans - even if the previous loans were paid in full, discharged, or cancelled. 

Interim Exception (AKA Grandfathering)

These loan limits do not apply to continuing students if you meet the exemption definition. You qualify as an eligible graduate or professional student under the interim exception only if you

• were enrolled in a program of study at Rowan as of June 30, 2026;
• received at least one Direct Loan for such program of study prior to July 1, 2026; and
• are currently enrolled at the same school in the same program of study for the same credential and haven’t ceased to be enrolled in the same program for the same credential at the same school at any point on or after July 1, 2026. 

If you qualify for the interim exception, you’ll be exempt from certain loan limits and loan eligibility changes for the lesser of

• three academic years or
• the difference between the published length of the program of study you are enrolled in and the period of time you have completed in that program.

If you’re a graduate or professional student and you’re considering changes to your graduate program of study, we encourage you to consult with the financial aid office to determine if that change will affect your eligibility for the interim exception.

Federal student loan repayment options are also changing. Existing repayment plans will be phased out, and new repayment options will become available. All student loans disbursed after July 1, 2026 will have two repayment options: the Tiered Standard Plan or the Repayment Assistance Plan. These repayment options are described in detail on the Studentaid definitions webpage.

If you have federal student loans, your repayment options may depend on when you borrowed, the type of federal loans you have, and other factors.

Students and borrowers should carefully review information from the U.S. Department of Education and their federal loan servicer before making decisions about repayment. Log in to your dashboard at studentaid.gov to see your loan balances, find out who is servicing your loans, and explore repayment plans available.