Federal Aid Updates

We understand that navigating your financial aid options can feel overwhelming. Recent legislation has changed student aid options and how higher education is funded, regulated, and distributed.

This site offers a resource for our current understanding of the new legislation. Final language for regulatory compliance for the Higher Education Act has not yet been written on these changes as they will be effective July 1, 2026; therefore, some site links to the Federal Aid information may not yet be updated.

Questions? Click Here

Key Updates You Should Know
Program Classification for Financial Aid Purposes
What Should You Do Now?
Helpful Links

Undergraduate-specific Updates

Effective Date	What	Specifics	What this means
July 1, 2026	Parent PLUS Loans	All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate (lifetime) limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
July 1, 2026	Parent PLUS Loans	Legacy Provision: If the student or parent borrower has a Federal Direct 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 credential, whichever is less at the same institution.	If a student transfers to another school, even to take one course, they lose legacy provisions.
Other Information specific to Undergraduates: 1. Undergraduate Federal loan limits maintain the current limits for annual and aggregate borrowing. 2. Applicable changes to the Federal Pell Grant program: Full COA Scholarships/Grants Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

Graduate-specific Updates

Effective Date	What	Specifics	What this means
July 1, 2026	Graduate PLUS Loans	Current borrowers have legacy provisions to complete their plan of study at their institution or college. New Transfer students lose the legacy provision	If you currently have taken a Graduate PLUS loan for your current program of study at UT Health Science or you obtain a Graduate PLUS loan prior to July 1, 2026 at UT Health Sciences, you will be eligible to continue in this loan program to the completion of your program of study at UT Health Science as long as you maintain continuous enrollment. Note: current loan limits include the additional unsubsidized borrowing limits for health professions programs that were eligible to participate in the HEAL program. WITHDRAWALS AND GAPS WILL CAUSE LOSS OF LEGACY PROVISION
July 1, 2026	Graduate Unsubsidized Loans	New borrowers who are not part of the legacy provision will be subject to the annual graduate loan limits. Annual loan limits listed are: $20,500 for graduate students $50,000 for professional students Transfer students are subject to new legislation	This means that effective July 1, 2026, a new Federal loan borrower will be subject to the new legislation.
July 1, 2026	Graduate Unsubsidized Loans	New borrowers who are not part of the legacy provision will be subject to the aggregate graduate loan limits. Aggregate loan limits listed are: $100,000 for graduate students $200,000 for professional students	This means that effective July 1, 2026, a new Federal loan borrower will be subject to the new legislation. The aggregate limit is capped and does not include amounts borrowed as an undergraduate.

Loan Limitations for All Borrowers

Effective Date	What	Specifics	What this means
July 1, 2026	Annual, Aggregate, and Lifetime Loan Limits	· New borrowers who are not part of legacy provision will be subject to a $257,500 lifetime borrowing limit on all federal student loans, excluding Parent PLUS and Graduate PLUS loans.	Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less, at their same institution or college.
July 1, 2026	Borrowing limit	The legislation contains a borrowing limit on all Federal student loans of $257,500 without regard to amount paid, forgiven, canceled, or discharged, excluding the borrowed Parent PLUS and Graduate Plus loan amounts.	This means that students will not be allowed to borrow more than the $257,000 maximum amount over their entire lifetime. For currently enrolled students, legacy provisions provide for three yearsminus the total current years toward completion of the minimum published program of study weeks/years. For example, your published program length in your current catalog year is 4 years. You have completed 2 years. Your resulting remaining legacy provision will allow an additional 2 years to complete your program of study under the current loan limits. If you exceed the 2 years, do not maintain continuous enrollment or transfer to a new institution, you would be subject to the new loan limits under the new legislation.
July 1, 2026	Loan proration	The legislation requires loan proration for less-than-full-time enrollment.	This means if you are enrolled as less-than-full-time, your loans will be prorated on the actual enrolled credit hours. Less than full time means: Undergraduate student with less than 12 credit hours Graduate or Professional student with less than 9 credit hours

Repayment Updates

Effective Date	What	Specifics	What this means
July 1, 2026	Borrowers with new loansmade on or after July 1, 2026	Two available repayment plans 1. A new standard repayment plan with fixed monthly payments and fixed terms ranging from 10 to 25 years based on the amount borrowed. 2. A new income-based repayment assistance plan (RAP).	Borrowers with new loans made on or after July 1, 2026, can only use one of these two repayment plans. This includes currently enrolled students taking additional loans to complete their program of study.
July 1, 2026	Borrowers with no new loans made on or after July 1, 2026	Continue to be eligible to enroll in:Current Standard Current Income Based (IBR) Graduated Repayment Plan Extended Repayment Plan May also opt in to the new income-based repayment assistance plan (RAP). Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, the borrower will be moved into RAP. This includes currently enrolled students who are nottaking additional loans to complete their program of study.
Other Repayment Updates: The legislation requires a $10 minimum monthly payment under RAP. A borrower’s RAP monthly payment will be based on their Adjusted Gross Income and number of dependents. Income and dependents are calculated separately for married borrowers who file taxes separately from their spouses. The legislation removes the requirement for borrowers to demonstrate a partial financial hardship in order to enroll in income-based repayment plans.

Loan Forgiveness / Deferment / Forbearance Updates

Public Service Loan Forgiveness continues to allow for time spent in a medical or dental internship or residency program.
For a borrower who receives a loan on or after July 1, 2027, those loans are not eligible for economic hardship and unemployment deferments. This means that loans received after July 1, 2027, cannot be deferred based on an economic hardship or proof of unemployment.

Loans made on or after July 1, 2027, may only be eligible for a forbearance on those loans not to exceed 9 months in a 24-month period. This means that any loan received after July 1, 2027, will be subject to the limited forbearance period of 9 months over a 24-month period.

We understand you may still have questions regarding your personal financial aid status. As these changes affect all students receiving Federal financial aid, we appreciate your patience as our office continues to process the current year’s financial aid and make ourselves available to address your questions regarding this new legislation. We welcome your questions and are happy to provide clarification regarding your personal financial aid status, pleaseschedule a meeting with your financial aid counselor .

Undergraduate Programs

Audiology and Speech Pathology (BSASP)
Dental Hygiene (BSDH)
Nursing (BSN)
Medical Laboratory Science (BSMLS)

Graduate (Master’s and Doctoral)

Audiology (AuD)
Biomedical Engineering (MS and PhD)
Biomedical Sciences (MS and PhD)
Clinical Laboratory Science (MSCLS)
Cytopathology (MCP)
Dental Science (MDS)
Epidemiology (MS)
Health Informatics and Information Management (MHIIM)
Health Outcomes and Policy Research (MS and PhD)
Nursing Practice (DNP)
Nursing Science (PhD)
Occupational Therapy (MOT and OTD)
Pathologists’ Assistant (MHS)
Pharmaceutical Sciences (PhD)
Pharmacology (MS)
Physical Therapy (DPT)
Physician Assistant (MMS-PA)
Speech and Hearing Science (PhD)
Speech Language Pathology (MSSLP)

Professional (DDS, MD, PharmD)

Dentistry (DDS)
Medicine (MD)
Pharmacy (PharmD)

Note: The classification of certain graduate programs as “health professional programs” (e.g., MD, DDS, PharmD) is based on definitions established by the U.S. Department of Education for the purposes of federal financial aid and student loan policies. This distinction is not determined by our institution and does not reflect the value or importance of other graduate programs such as DNP, DPT, or others in the health professions. We recognize and deeply value the contributions of all health-related disciplines.

We know that change can be confusing, but we are here to assist you in navigating the new legislation and impacts to your financial aid options. If you would like to discuss the impact on your financial aid, please schedule a meeting with your Financial Aid Counselor.

Steps to Take Regarding Repayment

Review Your Loan Information: Visit your loan servicer's website or studentaid.gov and make sure your contact information is up to date. This will ensure you receive all important notices about repayment deadlines and your loan status. Print your loan information or take a screenshot to ensure your status and information is accurate as of that day.
Explore Repayment Plans: Take time to understand the plans and which one may work best for your financial situation. Options that do exist and have not changed are still available. Please view https://studentaid.gov/manage-loans/repayment/plans for a full listing. We recommend using online calculators to estimate your new monthly payments.
Stay Informed About Forgiveness Programs: If you are employed in public service or teaching, make sure you're enrolled in the PSLF program, and check if any recent changes could help you qualify for forgiveness sooner.
For updates click here.

Helpful Links

Loans

Personal Finance

Disclaimer: This information is based on current federal law, legislative rules, and administrative structures as of July 4, 2025. Future legislative actions by Congress, changes to Senate rules, and executive actions by an administration could change the landscape.