Federal Student Loan Updates: What Students and Families Should Know
New federal legislation passed in July 2025 will bring important changes to Federal Direct Loan programs starting with the 2026–2027 academic year (effective July 1, 2026).
This page is here to help students and families understand what’s changing, what it may mean for you, and what to expect next. The information reflects Le Moyne’s current understanding as of April 2026, and we’ll continue to update this page as additional guidance becomes available from the U.S. Department of Education.
For the most up-to-date federal information, we also encourage you to visit studentaid.gov.
Undergraduate Students
Beginning July 1, 2026, the Parent PLUS loan will have limits on borrowing.
All parents (combined) have an annual Parent PLUS loan limit of $20,000 per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
A legacy provision allows for the parents of a dependent student or parent borrower with existing federal loans for a dependent student to continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to complete their current credential, whichever is less.
Beginning July 1, 2026, the Parent PLUS loan will have limits on borrowing.
All parents (combined) have an annual Parent PLUS loan limit of $20,000 per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
A legacy provision allows for the parents of a dependent student or parent borrower with existing federal loans for a dependent student to continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to complete their current credential, whichever is less.
Parent PLUS loan borrowers who would like to access an income-driven repayment plan and/or Public Service Loan Forgiveness(PSLF) must consolidate their PLUS loans into a Direct Consolidation Loan before July 1, 2026 and enroll in the income-contigent repayment(ICR) plan prior to July 1, 2028. If a parent borrows a new PLUS loan on after July 1, 2026, they will only qualify for the new tiered payment plan and will automatically lose eligibility for an income contingent repayment plan and PSLF for all previous PLUS loans borrowed.
Parent PLUS loan borrowers who would like to access an income-driven repayment plan and/or Public Service Loan Forgiveness(PSLF) must consolidate their PLUS loans into a Direct Consolidation Loan before July 1, 2026 and enroll in the income-contigent repayment(ICR) plan prior to July 1, 2028. If a parent borrows a new PLUS loan on after July 1, 2026, they will only qualify for the new tiered payment plan and will automatically lose eligibility for an income contingent repayment plan and PSLF for all previous PLUS loans borrowed.
Beginning July 1, 2026, the annual loan limits for Federal Direct Loans are required to be prorated in direct proportion to the percent of full-time status the student is enrolled. Additional guidance will be forthcoming from the U.S. Department of Education that will provide more details.
Beginning July 1, 2026, the annual loan limits for Federal Direct Loans are required to be prorated in direct proportion to the percent of full-time status the student is enrolled. Additional guidance will be forthcoming from the U.S. Department of Education that will provide more details.
Graduate Students
Beginning July 1, 2026, the Graduate PLUS loan will be eliminated for new borrowing.
Graduate students newly enrolled at Le Moyne College or beginning a new program on or after July 1, 2026 will not have Graduate PLUS loans available as a payment option.
Legacy Provision: If a graduate student has a Federal Direct Loan made before July 1, 2026, while enrolled in the same program of study, the borrower can continue to borrow from the Graduate PLUS Loan program for 3 academic years or the remainder of their expected time to credential, whichever is less.
Beginning July 1, 2026, the Graduate PLUS loan will be eliminated for new borrowing.
Graduate students newly enrolled at Le Moyne College or beginning a new program on or after July 1, 2026 will not have Graduate PLUS loans available as a payment option.
Legacy Provision: If a graduate student has a Federal Direct Loan made before July 1, 2026, while enrolled in the same program of study, the borrower can continue to borrow from the Graduate PLUS Loan program for 3 academic years or the remainder of their expected time to credential, whichever is less.
Beginning July 1, 2026 the annual loan limit will remain at $20,500 but the aggregate loan limit for graduate students will be capped at $100,000.
Legacy Provision: If a graduate student has a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less.
Beginning July 1, 2026 the annual loan limit will remain at $20,500 but the aggregate loan limit for graduate students will be capped at $100,000.
Legacy Provision: If a graduate student has a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less.
Beginning July 1, 2026, the annual loan limits for Federal Direct Loans are required to be prorated in direct proportion to the percent of full-time status the student is enrolled. Additional guidance will be forthcoming from the U.S. Department of Education that will provide more details.
Beginning July 1, 2026, the annual loan limits for Federal Direct Loans are required to be prorated in direct proportion to the percent of full-time status the student is enrolled. Additional guidance will be forthcoming from the U.S. Department of Education that will provide more details.
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