Financial Aid Changes in 2026-27

On July 4, 2025, HR 1 – Public Law No. 119–21, known as the “Big Beautiful Bill,” was signed into law. This legislation introduces sweeping changes to how students and families pay for higher education. The provisions include the phase-out of the Grad PLUS Loan Program, new annual and lifetime loan limits, adjustments to federal grant and loan programs, and fewer repayment options for new borrowers.

The Department of Education has not yet issued the official regulations that will define how these changes will be implemented. However, the summary below provides an overview of what we currently know—and what is still unclear—about how this law may affect financial aid beginning in the 2026–27 academic year.

For now, please be aware that:

Financial aid for the 2025–26 academic year is not changing.
If you start a new graduate program before July 1, 2026, you remain eligible for Federal Direct Graduate PLUS Loans (GradPLUS) under current rules.
If you start a new graduate program after July 1, 2026, you will be able to apply for student loans through federal and private lending processes.

Recent Changes: Student Loan Implications for the 2026-27 Academic Year

Federal Direct Graduate PLUS Loans Are Being Phased Out

Beginning July 1, 2026, new graduate and professional students will no longer be able to take out Federal Direct Graduate PLUS Loans.

If you’re currently enrolled and have already borrowed a GradPLUS Loan before that date, you can continue to access GradPLUS funds for up to three more years or until you finish your program—whichever comes first.

This continuation applies only to your current program of study. If you start a new program after July 1, 2026, GradPLUS Loans will no longer be available for that program.

New Graduate Loan Limits

Also starting July 1, 2026:

Professional students (for example, those in medicine, law, or similar licensure-based programs) may borrow up to $50,000 per year, with a lifetime limit of $200,000 in federal Unsubsidized Loans.
Other graduate students may borrow up to $20,500 per year, with a lifetime limit of $100,000.

Students already enrolled and using Unsubsidized or GradPLUS Loans in their current program will keep their current borrowing limits for up to three more years or until their program ends.

In late November, the Department of Education announced proposed definitions to "professional degree" programs previously unclear when the Big Beautiful Bill was passed into law in July 2025. While these definitions could continue to evolve, the first iteration reveals the programs below are no longer defined as professional programs, but rather, fall into graduate programs. As a result, the programs below remain eligible for aid, but not at the higher federal loan limit (these limits do not impact private lending levels).

Nursing (MSN, DPN, PhD)
Physician assistants (MSHS, MSHS/MPH)
Physical therapists (DPT)
Occupational therapists (OTD)
Audiologists
Architects (MA/MFA)
Accountants (MAccy, PhD)
Educators (MA, MS, M.Ed., MAT, Ed.S., PhD, Ed.D)
Social workers

Undergraduate Loan Rules Are Not Changing

Undergraduate borrowing limits and Pell Grants will remain the same.

However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026.

Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program.

Public Service Loan Forgiveness (PSLF) Remains Intact

Good news. PSLF is not changing. Borrowers working in qualifying public service jobs will still be able to pursue loan forgiveness under the same terms.

Changes to Repayment Options

For loans disbursed after July 1, 2026, existing income-driven repayment plans (IBR, PAYE, SAVE) will be replaced by a new Repayment Assistance Program (RAP).

Key points:

Borrowers who take new loans after that date can choose RAP or standard 10- or 25-year repayment plans.

Current borrowers who do not take new loans after July 1, 2026, can remain in existing income-driven plans—but must enroll by June 30, 2028.

Those who miss that deadline will automatically be moved into RAP.

We will provide more details once the Department of Education releases repayment examples and guidance.

Details to be Determined by the new Federal Student Aid Regulations

Current Students Ability to Opt-Out of GradPLUS “Grandfathering”?
Some students have asked whether they can skip GradPLUS eligibility to take advantage of the new $50,000 Unsubsidized Loan cap.

As of October 1, 2025 this option is unclear. Our national association (NASFAA) has requested guidance from the Department of Education, and we’ll share updates once we have them.

Loan Proration for Part-Time Students
The new law may prorate loan limits for students enrolled less than full-time. For example, a half-time graduate student might only be eligible for half the annual borrowing limit. We’re waiting for the Department of Education to clarify how this will apply to both graduate and undergraduate students.

Private Student Loan Information Portal: ELMSelect

In response to changes in the higher education landscape, GW’s Student Loan Task Force vetted private lenders to ensure fair practices and partnered with ELMSelect, a free, transparent, and lender-neutral comparison tool widely used by other higher education institutions.

The ELMSelect portal serves as a great starting point for exploring alternative funding, allowing students and families to compare multiple lenders’ loan rates, terms, and benefits. If you decide that private loans are the right option for you, our Office of Student Financial Assistance will certify loans from lenders listed in ELMSelect, or any other lender you choose.

ELMSelect is now available to students and their families.

Updated Information

Our office is carefully tracking these changes and will keep this site updated as new information becomes available.

We know this is a lot to absorb. Please know we’re here to help you navigate these changes and will continue to share updates as soon as we learn more.

Frequently Asked Questions (FAQs)

What changed with graduate student loans?

Due to the HR-1 legislation, the Federal Graduate PLUS Loan program is being phased out. Beginning July 1, 2026, students will no longer be able to borrow through the Federal Direct PLUS program unless they meet legacy requirements, which are defined as having borrowed a Federal Direct Unsubsidized or Federal Direct GradPLUS loan before July 1, 2026.

Will I still be able to get student loans to finance my graduate education?

The university is committed to ensuring that students continue to have access to affordable student loans while the source of loans shifts from federal to private lenders. To assist in the private loan search, GW’s Student Loan Task Force vetted private lenders to ensure fair practices and partnered with ELMSelect, a private lending comparison tool. The ELMSelect portal serves as a great starting point for exploring alternative funding, allowing students and families to compare multiple lenders’ loan rates, terms, and benefits. GW will certify loans from those listed in ELMSelect or any lender you choose.

Will these new private loans be more expensive than the Federal Graduate PLUS Loans?

The university expects private lending arrangements to offer borrowing levels and rates comparable to aid received through the PLUS program. Be sure to visit the ELMSelect portal to take advantage of the loan comparison tool.

NOTE: If you have not done so already, it is recommended to check your credit record health. This can be done by visiting AnnualCreditReport.com and requesting your free credit reports from Transunion, Experian and Equifax.

When will the loan options be available?

The ELMSelect portal is now available. Through the portal you can access a curated list of lenders reviewed by GW, review Side-by-side comparisons of interest rates, terms, and borrower benefits, apply for loans, and find guidance on how to combine federal and private loan options. Remove the special note about law and med

Will these loans be available to both new and returning students?

Yes. Both new graduate students enrolling for the first time and continuing students will continue to have access to private loan options.

What if I already rely on Graduate PLUS Loans to cover my costs?

If you have already borrowed a Direct Unsubsidized Loan or a Grad PLUS Loan for your current program before July 1, 2026, you will generally be covered under a "Legacy Provision" that allows you to continue borrowing under the current rules for up to three more years, or until you finish your program, whichever comes first.

You will be able to continue borrowing through the program until it officially sunsets on June 30, 2029.

What methodology will the university use to vet lenders?

The Student Loan Task Force prioritized strong consumer protections, competitive loan programs, and proven service standards in selecting lenders for a Preferred Lender List. Action steps included a formal request for information (RFI), historical usage by GW students, consumer reviews, and industry reviews.

Where can I get updates and ask questions?

The university will continue to share updates on loan programs as soon as information becomes available. This dedicated webpage is available to support students through the transition. It is encouraged that students direct further specific questions to their program directors for more information.

What happens if I reach the maximum borrowing limit?

If a student reaches the maximum borrowing limit set by a private lender, they will not be able to borrow additional funds through that specific loan program. However, the university’s financial aid office will work with the students to explore other available options, which may include:

Additional private loan programs from other participating lenders
Employer tuition support programs
Extended payment plans

*Last updated on 4/28/2026.