Financial Aid

• Students whose non-federal aid (institutional scholarships, external scholarships, HOPE Lottery, etc.) fully covers their Cost of Attendance (COA) budget will no longer be eligible for the Federal Pell Grant.

  • Example: An undergrad student living on campus with in-state tuition has a COA of $33,656 for the year. If the student receives scholarships and state aid that meets or exceeds the COA, they will not be eligible for Pell.

• Students whose Student Aid Index (SAI) is greater than twice the maximum Pell amount will no longer be eligible for the Federal Pell grant.

  • Example: The maximum Pell amount for the 2026-2027 aid year is $7,395. If a student has an SAI greater than 14,790, the student is not eligible for Pell.

• New Aggregate loan limit of $257,500 for all federal student loans combined.

• Students who attend less than full-time (24 credit hours total combined from fall and spring) for the year in their program of study (CPOS) will now have their loan amounts reduced.

  • Example 1: An undergraduate enrolls in 12 credit hours for the fall and another 12 credit hours for spring. Their total credit hours for the school year is 24, which meets the 24 credit hour requirement. Therefore, the student's direct loans (subsidized and unsubsidized) will pay out in full each semester.

  • Example 2: An undergraduate enrolls for 10 credit hours in their program for the fall and 12 credits in their program for the spring. Their total credit hours for the year are 22 hours, which is less than 24 credit hours for full-time status. Therefore, the student’s direct loans (subsidized and unsubsidized) will pay out at a reduced rate.

• Moving forward, the Office of Financial Aid will assume the number of credit hours a student registers for in the fall semester will also be the number they register for in the spring semester. If the student does not register for the same number of credit hours for the spring semester as in the fall, the office will adjust the student's credit hour total for the year and make loan adjustments if needed.

  • Example 1: An undergraduate registers for 12 credit hours for the fall, so the Office of Financial Aid assumes the student will also register for 12 credit hours in the spring, which equals 24 credit hours for the year. Therefore, the student's direct loans (subsidized and unsubsidized) will pay out in full each semester. 

  • Example 2: An undergraduate registers for 9 credit hours for the fall, so the Office of Financial Aid assumes the student will also register for 9 credit hours in the fall, which equals 18 credit hours for the year. Therefore, the student's direct loan (subsidized and unsubsidized) amounts will pay out at reduced rates for the fall semester.

  • Example 3: However, if that same student registers for 15 credit hours in the spring semester, the Office of Financial Aid will perform a recalculation and adjust the student's credit hour total to 24 credit hours for the year instead of 18. Therefore, the student will receive their full direct loan amounts for spring in addition to the amounts not received for the fall.

• Dropping a course in the fall semester after a student's direct loans have disbursed can affect their spring loan amounts.

  • Example 1: An undergraduate registers for 12 credit hours in the fall but chooses to drop to 9 hours after the fall portion of their direct loans (subsidized and unsubsidized) have paid towards their balance. Because their yearly credit hour total has dropped from 24 to 21, the student's spring direct loan portions may pay out at a reduced rate. 

  • Example 2: However, if the student registers for 15 credit hours in the spring, which brings their yearly credit hour total to 24, their spring loan portions will not be reduced.

All students are encouraged to reach out to the Office of Financial Aid before dropping a course to determine how doing so may affect their aid for subsequent semesters.

• New Aggregate loan limit of $257,500 for all federal student loans combined.

• Students who attend less than full-time (18 credit hours total combined from fall and spring) for the year in their program of study (CPOS) will now have their loan amounts reduced.

• • Example: A grad student enrolls for 6 credit hours in their program for the fall and 9 credits in their program for the spring. Their total credit hours for the year are 15 hours, which is less than 18 credit hours for full-time status. Therefore, the student’s direct loans (unsubsidized and Grad PLUS) will pay out at a reduced rate.

Graduate Students should note that graduate loans follow the same updated rule changes as undergraduate direct student loans.

• New Annual Limit of $20,000 per dependent student (under the age of 24)

• New Aggregate Limit of $65,000 per dependent student

• Legacy Provision: Students with any existing federal Direct Loan may be eligible to continue borrowing under a legacy provision. Students will need to reach out to the Office of Financial Aid to determine eligibility.

• New Borrowers will need to consider alternative funding such as private loans once loan limits are exceeded. Recommendation: The Office of Financial Aid highly suggests that parents consider requesting a maximum of $16,250 per year in Parent PLUS loans to ensure their student(s) have Parent PLUS eligibility for all four years of school.

• The Grad PLUS loan program will be eliminated for borrowers. New graduates will need to consider alternative funding such as private loans.

• Legacy Provision: Students with an existing Grad Plus Loan will need to reach out to the Office of Financial Aid to determine their continued eligibility.