Shenandoah University is Monitoring Recent Federal Loan Limit Changes
Last updated July 15, 2026
Financial aid updates from the One Big Beautiful Bill Act (OBBBA)
The OBBBA introduces a number of changes to financial aid that affect both undergraduate and graduate students. Changes include limits and requirements for federal loans, repayment options for new and current borrowers, and Pell eligibility calculations. The Office of Financial Aid is closely monitoring the changes and their implementation. They will continue to update this resource as information becomes available. The information below is based on current information provided to financial aid administrators.
Updates from the Department of Education can be found on StudentAid.Gov.
Previous Email Communications
Dear students,
We want to follow up on the previous communication sent on July 1 and share important updates regarding federal loan eligibility resulting from the “One Big Beautiful Bill” (1B3) legislation and ongoing legal developments. Because these shifting federal regulations affect graduate programs differently, your specific loan options depend on your program and whether you qualify for federal “Legacy Borrower” status.
For a detailed breakdown of these legislative changes and how they impact your specific program, please visit su.edu/financial-aid/how-to-apply-iug/fafsa-updates/.
This page will continue to be the first source of information, and we will continue to update this information as we closely monitor court rulings and regulatory guidance.
We know that navigating these shifting federal regulations can be stressful, and our team is fully committed to supporting you every step of the way. If you have questions about your specific situation, please contact the Financial Aid Office at finaid@su.edu or 540-665-4538.
Dear students,
We are writing to provide a brief update regarding the upcoming changes to federal student loan limits under the “One Big Beautiful Bill” (1B3) legislation. We know many of you have been closely tracking these regulations and navigating the potential impacts on your financial planning.
We also know the uncertainty caused by these changes in federal lending policy has been challenging — our financial aid staff joins you in being frustrated. Know that we have spent countless hours monitoring and trying to understand the changing regulations so we can best support you and your family. The good news is that the last 48 hours have brought some new policy changes, some of which may prove helpful to many of you.
A federal court recently issued an order that temporarily affects loan limits for professional degree programs, and the U.S. Department of Education has just released its interim operational updates regarding program classifications.
What this means for you right now: Our Financial Aid Office and General Counsel are actively monitoring these late-breaking legal developments. We are currently evaluating how to effectively implement these interim parameters for our specific graduate and health professions programs. Our goal is to maximize your funding options while protecting you from sudden mid-year regulatory disruptions. Because the federal regulatory landscape remains highly fluid, your financial aid package may be adjusted or re-evaluated as the situation clarifies.
Next Steps: You do not need to take any action at this time. We are working diligently to ensure you receive the maximum federal funding permitted under evolving law.
Thank you for your ongoing patience and flexibility as we navigate these complex federal updates.
Sincerely,
Courtney Jarrett, CPA
Vice President of Finance and CFO
Graduate Student Information
Graduate Federal Student Loan Updates: Navigating 1B3 & Recent Court Orders
Effective July 1, 2026, the federal legislation heavily restructured federal student lending for graduate and professional programs nationwide. Most notably, the federal Graduate PLUS loan program has been completely eliminated for new borrowers, replacing it with fixed borrowing caps.
Multiple lawsuits have been filed regarding these changes and litigation is ongoing. Recently, a federal court issued an order that temporarily alters how certain programs are classified for purposes of annual and cumulative federal loans. As a result, graduate student loan structures are highly fluid.
We are monitoring the litigation and understand these rapid changes may be confusing. We have created this page to assist you. Information on this page is for informational purposes and should not be solely relied upon in understanding and accepting federal student loans. A court’s order or interpretation of the law or regulations, action by the Department of Education, or action by congress may change at any time. While the university attempts to be accurate and timely, this fluidity means Shenandoah cannot guarantee accuracy of this information. Students are encouraged to verify their status, and their program’s annual and cumulative loan amounts before accepting any federal loans.
The guide below is intended to help identify your specific program and/or borrower status, view your annual and lifetime borrowing limits, and review important next steps for your financial planning.
Federal Loan Classifications
Your federal loan limits are determined strictly by your program of study, your enrollment date, and ongoing federal litigation. Locate your status below:
Programs explicitly written into federal statute as “Professional Degrees” and eligible for higher annual and cumulative loan limits. These tracks are unaffected by current lawsuits and maintain permanent access to higher borrowing limits.
- Eligible SU Programs: Pharmacy (Pharm.D.)
In response to a court order, the Department of Education temporarily classified additional programs as “Professional” programs eligible for higher annual and cumulative loan limits. Because this classification is tied to active, ongoing litigation, these limits are subject to change at any time, including mid-year adjustments.
- Eligible SU Programs: Doctor of Physical Therapy (DPT), Master of Science in Speech-Language Pathology (MS-SLP), Master of Science in Nursing (MSN), Doctor of Nursing Practice (DNP), and Master of Science/Doctorate in Occupational Therapy (MSOT/OTD), Master of Science in Athletic Training (MSAT), Master of Science in Physician Assistant Studies (MSPAS)
Returning students who successfully received a federal student loan disbursement for their current degree path prior to July 1, 2026. These students are grandfathered under previous federal lending rules for up to three academic years (or until program completion, whichever occurs first).
- Eligible SU Students: Any current/returning graduate student who had a Federal Direct Loan or Graduate PLUS Loan disbursed for their current program before July 1, 2026, and who meets all federal continuous enrollment and expected time to credential requirements (which factors in prior enrollment). This status preserves your ability to borrow under previous limits and access the Graduate PLUS program until the legacy pathway sunsets on June 30, 2029.
All other graduate master’s or doctoral tracks not explicitly listed above. These programs are bound by the permanent, standard federal graduate limits under the 1B3 legislation.
- Eligible SU Programs: All other graduate degrees, certificates, and master’s tracks.
Federal Loan Limits & Requirements
| Program / Borrower Status | Annual Federal Direct Loan Cap | Lifetime Cumulative Federal Cap | Key Enrollment Requirements |
| Permanent Professional Programs | $50,000 | $200,000 | Standard federal aid eligibility rules apply. |
| Temporarily Expanded “Professional” Programs | $50,000 (Temporary) | $200,000 (Temporary) | Subject to change based on active federal lawsuits. |
| Legacy Borrowers | Previous Federal Terms (Includes Grad PLUS) | Previous limits apply during the grandfathered window. | Must maintain continuous, full-time enrollment. |
| Standard Graduate Programs | $20,500 | $100,000 | Standard federal aid eligibility rules apply. |
Important Disclosures & Compliance Risks
Depending on your status, you must navigate specific short-term or long-term financial risks. Please review the items below carefully before accepting your aid packages.
Temporarily Expanded “Professional” Programs
Your program’s $50,000 annual limit is allowed solely due to a temporary court order and is subject to change as litigation continues. Should the status of your program’s designation change, please consider the following:
- If the status is overturned during the current academic year, the university may be required to freeze or adjust subsequent federal funding. You would then be responsible for covering any resulting tuition balance out-of-pocket or via private educational loans.
- If the status is overturned in a subsequent year, your program’s classification will permanently revert to standard graduate status. If your cumulative lifetime borrowing has already exceeded the standard graduate federal limits, you will lose eligibility for all future federal student loans for the remainder of your degree.
To help you make the most informed decision, we encourage you to review your cost of attendance and utilize the loan adjustment tools in Hornet Hub to evaluate your actual budget needs rather than automatically accepting the maximum amount offered.
Compliance Warning for Legacy Borrowers
To retain your grandfathered exemption from the restrictive new 1B3 limits, you are permitted a temporary window of up to three academic years or until degree completion (whichever comes first).
- The Continuous Enrollment Mandate: You must maintain continuous, full-time enrollment. Dropping to part-time status, taking an unapproved hiatus, or withdrawing from a semester will result in the immediate and permanent forfeiture of your Legacy status. Your aid package will immediately reset to the lower, standard graduate limits.
Financial Planning & Next Steps for All Students
Review and Adjust Your Package in Hornet Hub
Once your 2026–27 financial aid offer is processed and generated, it will automatically package you at the maximum amount permitted under current law. You are not obligated to borrow the maximum. We highly encourage you to utilize the loan adjustment tools within Hornet Hub to reduce your accepted amounts to match your baseline tuition and essential living needs.
Explore Alternative Funding Solutions
If your federal loan allocation leaves you with a remaining tuition balance due to the elimination of the Graduate PLUS program, consider the following options:
- Shenandoah Interest-Free Payment Plans: Divide your remaining semester balance into smaller, predictable monthly installments through Student Accounts.
- Private Educational Lending: Compare vetted private alternative student loan options through banks or credit unions by utilizing the [Shenandoah FastChoice Portal].
Undergraduate & Graduate Student Information
Student Aid Index (SAI) and Pell Eligibility
Beginning with the 2026-27 FAFSA and it’s October 1, 2025 launch, there are a few changes that have been made to the SAI and Pell calculations from the OBBBA.
Starting in 2026-27, an applicant with an SAI equal to or greater than twice the maximum Pell Grant award amount for the award year are ineligible for a Pell Grant. For the 2026–27 award year, this threshold is $14,790.
The OBBBA also updated the Student Aid Index (SAI) asset calculation to exclude, the following from current net worth of business and farms and should not be reported as assets on the FAFSA form:
- The net worth of a family-owned business with 100 or fewer full-time (or full-time equivalent) employees.
- The net worth of a farms on which the family resides.
- The net worth of a commercial fishing business and related expenses, owned and controlled by a family.
Proration of Loans Based on Enrollment
Students who enroll less than full-time will only be able to borrow loan amounts in direct proportion to their enrollment status. Full-time status for undergraduate students is 12 credits and for graduate students is 9 credits. Students will still need to meet at least part-time enrollment to qualify for federal loans.
Parent PLUS Loan
The OBBA has also made changes to the Parent PLUS loan. Starting July 1, 2026, the Parent PLUS loan will be capped each year at $20,000 per year per dependent student. There will also be a aggregate limit of $65,000 per dependent student. The aggregate limit is without regard to amounts forgiven, repaid, canceled, or discharged. This means that the limit counts everything ever borrowed, even if a portion was paid back or forgiven.
Legacy Provision: If a parent has a Parent PLUS loan made before July 1, 2026, while the dependent 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 complete their degree, whichever is less.
New Graduate/Professional Annual & Aggregate Loan Limits
Students who have not received a Direct Unsubsidized Loan disbursement before July 1, 2026, will be subject to the following new Direct Unsubsidized Loan limits:
- Graduate Students: $20,500 annual; $100,000 aggregate (i.e MBA, PA, OT, PT, etc.)
- Professional Students: $50,000 annual; $200,000 aggregate (Pharmacy)
- 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
Legacy Provision: If a student has a Direct Unsubsidized Loan disbursed before July 1, 2026, while enrolled in a credentialed program of study, the student can continue to borrow under the current loan limits for 3 academic years or until the end of their program of study, whichever comes first.
Graduate PLUS Loan
The Graduate PLUS loan, for new borrowers who begin their program on or after July 1, 2026, has been eliminated.
Legacy Provisions: If a student has a Federal Direct loan made before July 1, 2026, while enrolled in a program of study, the borrower can continue to borrow from the Graduate PLUS program for the remainder of their expected time to complete their degree with a maximum of 3 academic years, whichever is less.
Repayment Plans
The Repayment Assistance Plan (RAP) is the new federal student loan program that calculates your monthly payment as a percentage of your Adjusted Gross Income (AGI).
- If married filing separately, spouse’s AGI and number of dependents are not included in the payment calculation
- $10 minimum payment
- Monthly payment is 1-10% of income based on AGI
- $50 off monthly payment (base payment) per dependent
- 30-year repayment period
- Eliminates negative amortization
- No cap on monthly payment, even if it’s higher than the standard repayment plan would be
- If a borrower makes an on-time payment that reduces their principal by less than $50, ED will make a payment to the principal, up to the amount paid, minus what was applied to the principal or $50, whichever is less.
- After all current borrowers move out of all other current Income-Driven Repayment plans or Standard plans, the current plans will be sunset.
The bill creates a new standard plan with a fixed monthly repayment amount paid over 4 fixed terms of 10, 15, 20, or 25 years based on the amount borrowed (or outstanding balance if in repayment).
Current Borrowers with no new loans made on or after July 1, 2026 are eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans, and may also opt into the new Repayment Assistance Plan (RAP). Current Borrowers may also switch between, enter, or remain on existing IDR plans until July 1, 2028.
New Borrowers with new loans made on or after July 1, 2026 can be repaid using only two plans: a new standard repayment plan and the new income-based repayment plan, RAP
All new Parent PLUS loans from July 1, 2026, on must be repaid under the standard repayment plan and are not eligible for RAP. If a borrower chooses RAP but has a loan that is not eligible for RAP (like Parent PLUS and certain consolidated loans) they must repay the ineligible loan(s) separately.
Helpful Resources:
- What new parent borrowers need to know.
- What current parent borrowers need to know.
- What graduate students need to know.
- What health professions students need to know.
- What professional students need to know.
If you would like to discuss your specific situation or have questions about how these regulations might affect you, please don’t hesitate to contact the Financial Aid Office at finaid@su.edu or 540-665-4538. We are here to help you navigate these complexities.
Last updated July 15, 2026