Legislated Changes to Federal Student Loans

The One Big Beautiful Bill Act (OBBBA) was enacted in July 2025 and includes significant changes to federal student loan programs. These changes are effective July 1, 2026, and will be applied to federal student loans for 2026-2027 and later.

Wilmington University is actively monitoring these changes and will communicate all relevant information to students as new information is available from the federal government. Students are also encouraged to visit the federal government student aid website for additional information.

Please read below to learn more.

Elimination of Graduate Plus Loans

Beginning July 1, 2026, the Graduate PLUS Loan program will be eliminated. On that date, Grad PLUS loan applications will not be available for new borrowers.
Students with existing Grad Plus Loans disbursed before July 1, 2026 may continue to borrow in this program for up to three years, or until they complete their current program of study, whichever is less.
Graduate PLUS loans will be counted towards the lifetime borrowing limit for graduate students, even if they are borrowed prior to July 1, 2026.

Federal Loan Limit Changes

OBBBA Legislates changes to the annual and aggregate (lifetime) borrowing limits of several federal loan types. The table below shows how each federal loan has been affected.
Program	Change Summary	Prior Annual Limit	New Annual Limit	Prior/Legacy Aggregate Limit	New Aggregate Limit
Federal Direct Subsidized Stafford Loan	Loan amounts must be reduced for all students enrolled less than full-time	$3,500 - $5,500 Based on grade level, dependency status, need, and overall budget	Unchanged for full-time students Varies based on actual enrollment (i.e. up to $1,750 - $2,750/year for students enrolled half-time fall & spring)	$23,000	Unchanged
Federal Direct Unsubsidized Stafford Loan UNDERGRAD	Loan amounts must be reduced for all students enrolled less than full-time	$5,500 -$7,500 dependent $9,500 - $12,500 independent student (excluding sub loan amount) Based on grade level, dependency status, and overall budget	Unchanged for full-time students Varies based on actual enrollment ( i.e. up to $2,750 -$3,750 dependent. $4,750 - $6,250 independent students enrolled half- time fall & spring ) (excluding sub loan amount)	$31,000 dependent undergrad $57,500 independent undergrad (including sub amounts borrowed)	Unchanged
Federal Direct Unsubsidized Stafford Loan GRADUATE	Annual and aggregate limit changes, and loan amounts must be reduced for all students enrolled less than full-time	$20,500 All Graduate Students	$20,500 Master’s & Doctoral $50,000 Professional Students (Law)	$138,500 Grad including undergrad amounts*	$100,000 Grad $200,000 Professional students
Parent PLUS Loan	Law includes new annual and aggregate borrowing limits	Up to dependent student's total cost of attendance	$20,000 per dependent student	No limit	$65,000 per dependent student- regardless of amounts forgiven, repaid, canceled or discharged
Grad PLUS Loan	Law eliminates the Graduate PLUS program, effective July 1, 2026, with legacy provisions for current borrowers to complete their program of study.	Up to students' total Cost of Attendance	Unchanged for students who will still qualify	No limit	Amounts borrowed are subject to the new $257,500 cap on all federal student loans (excluding Parent PLUS loan amounts)

*Graduate students continuing in a program that started prior to July 1, 2026, will have a lifetime borrowing limit of $138,500 under the legacy provision related to the aggregate limit through the remainder of their current graduate program.

Loan Reduction for Less than Full-Time Enrollment

Starting with loans accepted for fall 2026, federal law requires institutions to adjust annual loan amounts based on a student’s enrollment status. Loan eligibility will be reduced proportionally for students enrolled less than full time. This rule will apply to Stafford and Graduate PLUS loans accepted by all students, regardless of grade level.

Full time enrollment for undergraduate (associate and bachelor’s degree) students is 12 or more credits per semester or 24 credits per year
Full time enrollment for graduate (master’s & doctoral) students is 9 or more credits per semester or 18 credits per year.

Federal Stafford Loans will follow a schedule of reduction that is similar to the adjustment of Pell Grants when a student is enrolled less than full-time in a semester.

Calculating your Fall 2026 Loan Amount:

We have created an MS Excel Calculator to assist students with determining an approximate amount of federal loans they may expect to receive in Fall 2026. Students may also use the tool to calculate their potential REFUND or possible BALANCE DUE amount for the term. WilmU's calculator tool uses a simplified version of the algorithmic formula that our student system uses to calculate individual student loan reductions, so students may see a slight discrepancy in whole dollar amounts when comparing the results they get using the calculator to their actual reductions.

Download the Calculator

The following information is needed to use the calculator tool:

the number of credits you are registered for fall 2026
the total loan amount(s) you have been offered and/or accepted for the 2026-27 aid year.
your tuition and fees for the semester. Complete instructions on where to find this information using the myWilmU portal are included on the first tab of the calculator spreadsheet.

Recommended Best Practices for Navigating the New Loan Changes

Check Your Borrowing History:

Expect to have Out-of-Pocket Expenses:

If you plan to enroll less than full time in any semester, it is likely that your federal loans will not cover all your college related expenses.
Vouchers for course materials (book vouchers) can only be issued to students who have a credit balance after all federal aid is applied to their tuition and fees.
If you still have a balance after your aid has been applied, you should be familiar with Wilmington University’s payment plan options and policies related to unpaid tuition balancesg. registration holds and additional fees.

Continuing Federal Loan Borrowers Should Avoid Academic Changes:

Any changes in program or break in continuous enrollment may cause a loss of legacy status relating to aggregate loan borrowing limits. Withdrawal from courses or taking a leave of absence could disqualify you from the legacy provision and cause new restrictions to be put in place on your borrowing upon return.
If you must take a break from your program, you should check with the financial aid office to see how the break might affect your future aid eligibility.
If you are a continuing graduate student who has borrowed federal loans, and you want to change programs, you should check with financial aid about the possible implications on your borrowing eligibility before you do so.

Search for Outside Scholarship Opportunities:

Scholarship funding can help offset loan borrowing as this is money that will not require repayment. Visit the WilmU Scholarships webpage out the page for scholarship opportunities that might be available to you.

Investigate Private Lending Options:

You can explore private education loan options through FastChoice: Fast Choice is a research tool that provides information about private education loans which is in an easy-to-understand shopping format with filters and comparison options. s.

Explore Credit & Financial Wellness Resources:

Financial Literacy & Empowerment at Wilmington University

Frequently Asked Questions

Does this affect scholarships or grants?

These federal changes apply only to federal student loan eligibility. Scholarship eligibility continues to depend on the requirements of each scholarship program. Eligibility for Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG) and TEACH Grants is calculated separately from federal student loan eligibility and continues to be determined under federal grant regulations.

Does this affect private loans?

No. These changes apply only to federal student loans. Private educational loans are not affected.

Does this affect Parent PLUS Loans or Graduate PLUS Loans?

Graduate PLUS Loans are subject to the loan reduction requirements, but Parent PLUS Loans are not. Because the changes may affect students differently depending on the loan program and individual circumstances, contact Financial Aid if you have questions about your eligibility.

Can I still use financial aid (book voucher) to purchase books and supplies?

Yes. If you have excess financial aid available, you may continue to use a book voucher to purchase eligible items before the start of the term. However, if you reduce your enrollment after making purchases, your loan amount may also be reduced. If that leaves less financial aid available to cover your bookstore purchases, you will be responsible for any remaining balance.

Why does my billing account show a higher loan amount than the calculator?

The loan amount currently displayed in your student account reflects your accepted award based on full-time enrollment. If you are enrolled less than full time, Financial Aid will adjust your loan amount in September before the funds are fully disbursed to your student account. The calculator provides an estimate of your expected adjusted loan amount.

The calculator says my refund is lower than I expected. Is that correct?

The calculator provides an estimate based on your current enrollment, tuition and fees and accepted loan amounts. Your final refund will be determined after your financial aid is finalized.

If I register for more classes after my loans are adjusted, can my loan be recalculated?

Possibly. If your enrollment changes before loan disbursement, your loan eligibility may be reviewed and adjusted based on your new enrollment level.

What if I drop classes after my loans have been disbursed?

If you drop or withdraw from a course after your loans have been disbursed, those credits will not count toward your overall enrollment status when your remaining annual loan eligibility is calculated. As a result, your anticipated loan amount for spring 2027 may be reduced or canceled to ensure that you do not exceed your calculated federal loan eligibility for the year.

I dropped a class after my Fall loan was disbursed. Why was my Spring loan reduced?

Under the new federal regulations, annual loan eligibility is based on your enrollment during the academic year. Because the credits from the dropped course no longer count toward your annual enrollment, your remaining loan eligibility was recalculated. This may result in a lower spring loan amount.

If I add another class, will my loan increase?

Possibly. Federal loan eligibility is based on your enrollment for the academic year under the new federal regulations. If adding a course changes your calculated annual eligibility, your loan amount may increase. If financial aid is a factor in your decision to add a course, contact Financial Aid first so we can help you understand how the change may affect your eligibility.

If I become full-time, will I receive my full loan?

If you enroll full time in your program for both the fall and spring semesters, you may be eligible to receive the total loan amount originally offered to you.

Can I submit a Loan Revision (Change) Request to increase my loans?

Possibly. A loan increase may be considered in the following situations:

Your grade level has changed. Requests related to a grade-level change or a change from undergraduate to graduate status will be reviewed as they are received.
You have increased your enrollment. Requests related to increased enrollment will be reviewed after the University’s drop/add period ends for the applicable term.
You previously declined all or part of your offered loans. You may submit a Loan Revision (Change) Request to ask that previously declined loan funds be reinstated.

If none of these circumstances apply, submitting a Loan Revision (Change) Request will not increase your calculated loan amount for the semester. Financial Aid will determine your final loan eligibility based on your confirmed enrollment and federal eligibility requirements. Approval is not guaranteed.