Federal Student Aid Updates 

Learn how your financial aid may be impacted

The One Big Beautiful Bill (OB3) brings major changes to federal student aid programs, with key provisions taking effect on July 1, 2026. 

The U.S. Department of Education is still working on providing details on what those changes will look like, so we don’t know all the answers yet, but we’re sharing what we know at this time. We’re closely monitoring updates to provide the most accurate, timely information as it becomes available. 

Updated 4/28/2026

Jump to Section

New Students
Returning Students
Explore Your Options
Need Help?

New Students

For new borrowers, Parent PLUS loan limits are changing. The four-year limit is $65,000, which equates to $16,250 per year. 

Starting July 1, 2026, the Federal Direct Unsubsidized Loan borrowing limits are different for graduate and professional students. A professional student is enrolled in a program that awards a professional degree upon completion of the program. 

The federal government has not yet determined which programs will be classified as professional versus nonprofessional under the new graduate loan guidelines. Final regulations are expected to be released by July 1, 2026. 

Nonprofessional graduate student loan limits after July 1, 2026: $20,500 annually; $100,000 total.

Professional graduate student loan limits after July 1, 2026: $50,000 annually; $200,000 total.

The Graduate PLUS loan has been eliminated for new student borrowers after July 1, 2026, but after July 1, 2026, students are still able to borrow Federal Direct Unsubsidized Loans.

New students starting in May 2026 can still borrow Graduate Plus Loans through July 1, 2026. 

Impacts all students who change their enrollment status, both new and returning.

Federal loan amounts will be reduced for students who are enrolled less than full-time (full time is 12 credit hours). 

Because future loans change based on enrollment status, students should plan their schedules carefully starting the 2026-27 academic year and connect with your academic advisor and the Office of Solutions if you need to drop a course any time throughout your semester at Russell Sage, as withdrawing from a course may result in prorated loan charges. If you are a full-time student and drop below 12 credits, your loan will be prorated (reduced based on your credit hours) — and you may owe the college money. 

Example: 
Full time enrollment for undergraduates at Russell Sage College is 24 credits per full academic year (typically 12 credits in fall and 12 credits in spring).

If you enroll in:

  • 9 credits in Fall
  • 12 credits in Spring
  • This equals 21 total credits for the academic year

Semester Award Calculation:

  • Fall:
  • 9 credits ÷ 24 credits (annual full time enrollment) = 37.5%
  • If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 37.5% = $2,063 for Fall 
  • Spring:
  • 12 credits ÷ 24 credits (annual full time enrollment) = 50%
  • If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 50% = $2,750 for Spring
  • Total Award for Academic Year: $4,813 
    (87.5% of the annual limit with full time enrollment)

Returning Students 

If you’ve already taken out student loans, some recent changes to federal student aid may allow you to keep certain aspects of your existing financing under legacy provisions (you’ll be “grandfathered” in), while other changes are set to take effect July 1, 2026. Review what we currently understand about the new regulations below:

Already borrowing under this program? You’ll be “grandfathered” in.

For new borrowers, Parent PLUS loan limits are changing. However, if you’ve previously borrowed a Parent PLUS loan for your student at Russell Sage for the program they are enrolled in now, your current limit will remain in place for up to three years, as long as your student is continuously enrolled. 

If you already have a Graduate PLUS loan, there’s good news.

The Graduate PLUS loan has been eliminated for new student borrowers.

Any student who has borrowed any federal loan before July 1, 2026, and meets the following conditions is eligible for the Graduate PLUS Loan: 

  • Enrolled in the same graduate program for up to three academic years 
  • Students must continue to be credit approved 
  • Students must be enrolled in a graduate program prior July 1, 2026 

If you already have a Graduate PLUS loan, there’s good news – you’ll be “grandfathered” in as long as you meet criteria.

  • Starting July 1, 2026, the Federal Direct Unsubsidized Loan limits are different for graduate and professional students. A professional student is enrolled in a program that awards a professional degree upon completion of the program. 
  • The federal government has not yet determined which programs will be classified as professional versus nonprofessional under the new graduate loan guidelines. Final regulations are expected to be released by July 1, 2026. 
  • Any student who borrowed a federal loan prior to July 1, 2026, is exempt from these loan limits for up to three years, provided they are continuously enrolled in the same graduate program. 
  • Nonprofessional graduate student loan limits after July 1, 2026: $20,500 annually; $100,000 total.
  • Professional graduate student loan limits after July 1, 2026: $50,000 annually; $200,000 total.

Impacts all students who change their enrollment status, both new and returning.

Federal loan amounts will be reduced for students who are enrolled less than full-time (full time is 12 credit hours). 

Because future loans change based on enrollment status, students should plan their schedules carefully starting the 2026-27 academic year and connect with your academic advisor and the Office of Solutions if you need to drop a course any time throughout your semester at Russell Sage, as withdrawing from a course may result in prorated loan charges. If you are a full-time student and drop below 12 credits, your loan will be prorated (reduced based on your credit hours) — and you may owe the college money. 

Example: 
Full time enrollment for undergraduates at Russell Sage College is 24 credits per full academic year (typically 12 credits in fall and 12 credits in spring).

If you enroll in:

  • 9 credits in Fall
  • 12 credits in Spring
  • This equals 21 total credits for the academic year

Semester Award Calculation:

  • Fall:
  • 9 credits ÷ 24 credits (annual full time enrollment) = 37.5%
  • If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 37.5% = $2,063 for Fall 
  • Spring:
  • 12 credits ÷ 24 credits (annual full time enrollment) = 50%
  • If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 50% = $2,750 for Spring
  • Total Award for Academic Year: $4,813 
    (87.5% of the annual limit with full time enrollment)

Explore your options

As these changes continue, it is important to consider alternative ways to finance your education – including private loans, payment plans, and outside scholarships. 

Got questions?

New Students? Connect with the Graduate or Undergraduate Admissions Office:

Undergraduate Admission

Graduate Admission

Returning students? Connect with Solutions:

In This Section