Federal Student Loan Changes in 2026: Key Information for Widener Students

What's Changing in 2026?

Starting July 1, 2026, the federal Graduate PLUS loan program will be eliminated for new borrowers, and new federal borrowing limits and repayment structures will go into effect for undergraduate, graduate, and professional students, as well as new caps for Parent PLUS Loans. Because the U.S. Department of Education has not released final rules or full implementation guidance, details may continue to change. Widener Financial Aid will update this webpage as official information becomes available.

Undergraduate Student Federal Borrowing Limits

Under the One Big Beautiful Bill Act (OBBB), federal borrowing limits for undergraduates remain unchanged but now count toward the new lifetime federal maximum. Undergraduate federal loan limits remain at current levels, with a maximum lifetime limit of $57,500. Undergraduate borrowing also counts toward the new $157,500 lifetime cap on all federal student loans (excluding Parent PLUS Loans and students in a professional program).

Changes to the Parent PLUS loan program

Previously, a Parent of a Dependent Undergraduate student could borrow a loan in any amount, up to their student’s remaining cost of attendance (COA)

New legislation changed how much a parent can borrow per year as well and overall:

The amounts available for a new Parent PLUS borrower (after July 1, 2026) are now capped at:

• $20,000 per year
• And $65,000 per child

These new limits are not specific to who the parent borrower is – an undergraduate student will be limited to both of these new caps, regardless of which parent borrows the loan

Parent PLUS Legacy Borrower Provision

Students enrolled during the 2025-26 academic year and had a Parent PLUS loan are considered a “Legacy Borrowers” – These changes will not apply unless the student:

• Changes Institutions
• Changes their degree type (Associates to Bachelors)
• Does not complete their program within the published, allocated timeframe
• Does not complete their degree by July 2029
• Failure to meet any of the conditions above will result in the loss of legacy borrower status

What Is a “Legacy Borrower”?

If you take out a federal loan for your current program at Widener before June 30, 2026, you are considered a legacy borrower.

This means:

• You can keep borrowing Grad PLUS loans under the current rules.
• You can do this for up to 3 more years (until June 30, 2029) or until you finish your program — whichever comes first.
• You must remain enrolled in the same institution, degree type, and complete your program within the published timeframe.
• You will not be affected by new federal loan limits during this period as long as all legacy conditions are met.

Grad PLUS Loans Eliminated for New Borrowers 

• Starting July 1, 2026, Graduate PLUS Loans will no longer be available to new borrowers.
• A “new borrower” is anyone who receives a federal student loan at Widener after June 30, 2026, including students beginning a new graduate/professional program in Summer or Fall 2026, as well as current students who start a new program after that date.

Graduate/Master’s Programs

• Loan limits for most graduate/master’s programs will be capped at $20,500 per academic year, up to $100,000 in total.
• The combined borrowing limit for undergraduate and graduate loans is $157,500.

Professional Programs (e.g., PSYD Widener Students Only)

• Professional programs will be capped at $40,000 per academic year, up to $200,000 in total.
• The combined borrowing limit for undergraduate and professional loans is $257,500.

Graduate and Professional Students (Graduate PLUS Legacy Borrowers)

Graduate or professional students who borrow a Federal Direct Unsubsidized Loan or Graduate PLUS Loan for their current program before July 1, 2026, may continue borrowing Graduate PLUS Loans under the current federal rules for up to three additional years or until they complete their program, whichever occurs first. 

To maintain legacy borrower status, students must remain enrolled in the same program and complete their program within the published timeframe. Failure to do so will result in the loss of legacy borrower status. Legacy graduate borrowers are not subject to the new federal borrowing limits.

How this Affects Widener Students 

• Eligible Widener students will continue to have access to Federal Direct Unsubsidized Loans and private student loan options to help fund their education.
• Federal regulations may require loan amounts to be prorated based on enrollment. Students enrolled in less than full time may only receive a portion of the annual loan limit. We are awaiting further clarification from the U.S. Department of Education on how this will be applied.
• Students who experience a funding gap due to changes in federal loan eligibility may explore payment plan options through the Bursar's Office.

Need Help?

Contact Widener Financial Aid Services at finaidmc@widener.edu for guidance and support.

Please continue to check this website for any updates.