Federal Student Aid FAQs
New first-time Parent PLUS loan borrowers have new annual and aggregate loan limits. All parents (combined) may borrow $20,000 per year ($10,000 per semester) for each of their dependent students. The total lifetime loan limit is $65,000 per dependent student.
Interim Exception
Parent borrowers are not subject to the new yearly and aggregate PLUS loan limits for up to three academic years or their student’s time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:
were enrolled in a program of study at an institution as of June 30, 2026; and
received at least one Direct Loan (Subsidized/Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and
are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.
Please note: The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student.
How to calculate student's remaining time:
Identify the total published academic length of the student’s degree program
Subtract the amount of time the student has already completed by July 1, 2026
Example
If your student is enrolled in a four year program and has already completed two years (four semesters) as of July 1, 2026, their expected time to complete their program is two years (four semesters).
You will be eligible to continue to borrow the PLUS loan, under the old rules for the student’s remaining two years, whether they complete their program or not. If the student takes additional time to complete the program beyond the published 4 years, you will be subject to the new rules and new loan limits.
Begins July 1, 2026.
A new lifetime federal loan limit of $257,500 has been established for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study*. This maximum aggregate limit for all Federal Direct Loans includes Subsidized, Unsubsidized, and Grad PLUS loans. Once the limit is reached, you are no longer eligible for additional Title IV loans, even if you repay the money.
*There is no change to undergraduate aggregate loan limits
Interim Exception
Students may continue borrowing using the old program rules for up to three academic years or their time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:
were enrolled in a program of study at an institution as of June 30, 2026; and
received at least one Direct Loan (Subsidized/Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and
are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.
Please note: The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student.
How to calculate your remaining time:
Identify the total published academic length of your degree program
Subtract the amount of time you have already completed by July 1, 2026
Example
If you are enrolled in a two year program and have already completed one year (two semesters) as of July 1, 2026, your expected time to complete your program is one year (two semesters).
You will be eligible to continue to borrow using the old lifetime limits for the remaining year, whether you complete your program or not. If you take additional time to complete the program beyond the published 2 years, you will be subject to the new rules and new aggregate loan limits.
The Graduate PLUS loan program will be eliminated for new borrowers starting July 1, 2026 as part of the One Big Beautiful Bill Act (OBBBA).
Interim Exception
Students may continue borrowing using the old program rules for up to three academic years or their time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:
were enrolled in a program of study at an institution as of June 30, 2026; and
received at least one Direct Loan (Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and
are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.
Please note:
The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student
Withdrawing from a semester or taking a leave of absence in considered to be a break in enrollment unless it is for a military assignment (180 days or less)
How to calculate your remaining time:
Identify the total published academic length of your degree program (e.g., 2 years or for a master's degree)
Subtract the amount of time you have already completed by July 1, 2026
Example
If you are enrolled in a two year program and have already completed one year (two semesters) as of July 1, 2026, your expected time to complete your program is one year (two semesters).
You will be eligible to continue to borrow a Graduate PLUS loan for the remaining year, whether you actually complete your program or not. If you take additional time to complete the program beyond the published 2 years, you will be subject to the new rules and no longer have access to use the Graduate PLUS loan.
Begins July 1, 2026.
A federal court has temporarily halted the implementation of a portion of the Department of Education’s (ED) narrowed professional degree definition from its Reimagining and Improving Student Education (RISE) final rule, just days before the rule was set to take effect on July 1, 2026.
The decision, which applies nationally, temporarily reverts to the current three-part standard for professional degree programs at 34 CFR 668.2 until the court issues a final decision on the full merits of the case.
As of November 6, 2025, a professional student is defined as a student enrolled in a program of study that awards a professional degree, as defined under section 34 CFR 668.2.
Examples include but are not limited to:
Veterinary Medicine (D.V.M.)
Law (L.L.B. or J.D.)
Pharmacy (Pharm.D.)
Dentistry (D.D.S. or D.M.D.)
Chiropractic (D.C. or D.C.M.)
Medicine (M.D.)
Optometry (O.D.)
Osteopathic Medicine (D.O.)
Podiatry (D.P.M., D.P., or Pod.D.)
Clinical Psychology (Psy.D. or Ph.D.)
Theology (M.Div., or M.H.L.).
The Department of Education has proposed defining a professional degree as:
“(i) Signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor's degree;
(ii) Is generally at the doctoral level, and that requires at least six academic years of postsecondary education coursework for completion, including at least two years of post-baccalaureate level coursework;
(iii) Generally, requires professional licensure to begin practice; and
(iv) Includes a four-digit program CIP code, as assigned by the institution or determined by the Secretary, in the same intermediate group as the fields listed in paragraph (2) (i) of this definition.”
Visit '' for information on additional options to help cover the cost of your education such as searching for scholarships, researching the installment payment plan, searching for private education loans, and more.
Full Cost of Attendance 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 they are otherwise eligible for the program.
Students with High Student Aid Index (SAI)
Students will not receive a Federal Pell Grant if their SAI exceeds twice the maximum Pell Grant award. For the 2026–27 award year, the maximum Federal Pell Grant award is $7,395, making the SAI cutoff 14,790 (7,395 x 2).
No. The student is not enrolled in the same program in 2026–27 as they were in 2025–26.
The Unsubsidized annual and aggregate loan limits are changing based on whether a student is defined as a Graduate or a Professional student, is enrolled in the same program in 2026–27 as in 2025–26, and if the student previously borrowed in the Federal Direct loan program before July 1, 2026.
*This annual amount is not changing.
Please Note:
These loan limits do not include amounts borrowed as an undergraduate.
Students who are both graduate and professional students at some point in their educational career may only borrow up to $200,000 in total for graduate and professional school.
Begins July 1, 2026.
Under OBBBA, federal student loan limits are subject to a Schedule of Reductions (SOR) for students who are enrolled less than full time in an academic year. Your annual loan eligibility is reduced proportionally based on the number of credits you are taking, if you enroll less than full time (less than 12 credits undergraduate and 9 credits graduate), .
The reduction applies to all Federal Direct Subsidized/Unsubsidized Loans for undergraduate, graduate, and professional students and Graduate PLUS loans for graduate and professional students. Parent PLUS loans are not subject to these adjustments.
Subsidized/Unsubsidized Examples
If you are a dependent first-year undergraduate, your combined annual loan maximum of Subsidized/Unsubsidized Loan is $5,500 (or $2,750 per semester). Semester loan limits are adjusted based on a $2,750 maximum baseline.
If you are Graduate Student, your annual loan maximum of Unsubsidized Loan is $20,500 (or $10,250 per semester). Semester loan limits are adjusted based on a $10,250 maximum baseline.
If you are a Professional Student, your annual loan maximum of Unsubsidized Loan is $50,000 (or $25,000 per semester). Semester loan limits are adjusted based on a $25,000 maximum baseline.
Graduate PLUS Loan
Graduate and Professional Students who qualify under the limited exception and may continue to borrow a Graduate PLUS Loan, are also subject to a reduction of their PLUS loan IF their final term of study is shorter than an academic year (enroll in a single semester) OR if they enroll less than full time (9 cr).
Begins with the 2026-27 academic year.
Log into StudentAid.gov using your StudentAid.gov username and password:
Determine the amount you borrowed
Update your contact information
Review the status of your loans
Note your loan servicer contact details
Once you have established what you owe and the statuses of your loans review loan repayment options.
If you do not make your student or PLUS Loan payment or make your payment late, your loan may go into default and will be reported to national credit reporting agencies damaging your credit rating and future borrowing ability. Learn more about consequences of defaulting on a student loan.
To resolve a default, you have the following options
Repaying the defaulted loan in full
Rehabilitating your loan(s)
Consolidating your loan(s)
For information and assistance to help resolve defaulted loans assigned to the Department’s Default Resolution Group visit the Debt Resolution Federal Student Aid site.
The Department of Education has resumed collections May 5, 2025 on its defaulted federal student loan portfolio.
If you fail to make (and comply with) other arrangements to repay the debt, which could include entering into a loan rehabilitation agreement, ED can use a variety of methods to collect your defaulted federal student loan such as withholding money from the following sources of income:
your income tax refund and other federal payments
your wages
Federal student loan servicers are private companies contracted by the U.S. Department of Education to manage the day-to-day functions of federal student loan repayment by:
collecting payments
assisting with repayment plans
providing customer service to borrowers
Learn more about loan servicers.
If your SAI changes as the result of verification, your financial aid may be adjusted. Monitor your Financial Aid Offer and PSU e-mail. When an aid adjustment is made, LionPATH will trigger and send an e-mail to the student. Any resulting balance on the account will be your responsibility.
Create a Job Requisition All FWS positions should be posted on the Penn State Human Resources Career Pages, utilizing Workday Recruiting job requisitions. This WorkLion Article offers guidance for posting work-study positions and is available via the Workday Knowledge Base.
Please note that all FWS job postings should include 'Federal Work-Study' in the title. It is very important that the appropriate ‘job profile code’ is selected when creating your job requisition. The following paragraph should be included in the posting:
"Students who received Federal Work Study have the opportunity to obtain a job and perform related duties either on campus, or remotely, if possible and at the discretion of the employer. Students applying for Federal Work Study positions should clarify expectations with their potential employer regarding either on campus/in person or remote work arrangements. An offer of Federal Work Study does not guarantee a job position is available."
You are responsible for monitoring your balance and communicating with your manager as your funds near exhaustion. You will receive a warning email regarding the balance when you have earned 50% or more of your total funds for the academic year. You will receive a warning email when you are close to exhausting your funds. Over-earning can have negative impacts on your financial aid. At this time, supervisors are not informed directly by the Office of Student Aid. Should your funds be exhausted, you will need to cease working as a federal work-study student. Additional opportunities for continued employment in your position would be at the discretion of the manager/supervisor as any future earnings would be their department’s responsibility.
If you drop below half-time (less than 6 credits as an undergraduate and 5 credits as a graduate) enrollment, you may be ineligible for aid, including loans. Depending on the time during the semester that you drop a course(s), your aid may be adjusted. You must maintain satisfactory academic progress from one semester to the next or you may become ineligible for aid, including loans. Dropping Credits Prior to the End of the Drop/Add Period Impacts on your aid eligibility: You will be responsible for the balance of your tuition bill if your aid is adjusted. Your financial aid may be adjusted if your credits drop below the minimum required. If you are a Federal Pell Grant recipient, the grant may be adjusted; for example, if you drop from 12 to 9 credits, your grant may be prorated. Review additional information about the Pell census date. If you are a Pennsylvania State Grant recipient, your grant may be reduced if you drop from full-time to half-time enrollment or from half-time to less than half-time. If you have a loan(s) that requires a minimum number of credits, and the loan has not disbursed, you may become ineligible for the loan. Loan eligibility is determined at the time of disbursement. Dropping Credits During the Late Drop Period Impacts on your aid eligibility: You will be responsible for the balance of your tuition bill if your aid is adjusted. Your financial aid may be adjusted if the aid source requires full-time or half-time enrollment and your credits drop below the minimum required. If you are a Pennsylvania State Grant recipient, your grant may be reduced if you drop from full-time to half-time enrollment, or from half-time to less than half-time. If you have a loan(s) that requires a minimum number of credits, and the loan has not disbursed, you may become ineligible for the loan. Loan eligibility is determined at the time of disbursement. Late Dropping credits may jeopardize future aid eligibility. You must maintain satisfactory academic progress or you may become ineligible for aid, including loans. Loan Grace Period/Repayment If you received a Federal Direct Loan or Federal Perkins Loan and drop below half-time, the grace period prior to repayment will begin (nine months for Perkins and University Loans, six months for Federal Direct Loans). If you have already used your loan grace period, then you may begin repayment. For more information, contact the appropriate loan servicer: Federal Perkins or University Loan recipients: contact Office of the Bursar. Federal Direct Loan recipients: contact your federal loan servicer. You can obtain the contact information for your federal loan servicer by logging into studentaid.gov. Federal Direct Loan recipients under the Federal Family Education Loan (FFEL) Program: contact the lender(s) of your FFEL loan(s). You can obtain the contact information for your FFEL lenders by logging into studentaid.gov.