2026-2027 Federal Student Aid Changes

No, Undergraduate Federal Subsidized and Unsubsidized Loan borrowing limits and Pell Grant lifetime eligibility limits will remain the same.

No, annual borrowing on Parent PLUS Loans is now limited to $20,000 per undergraduate student and a lifetime limit of $65,000 per student. 

However, if the parent borrower had a Federal Direct PLUS Loan disbursed for a dependent student prior to July 1, 2026, while the dependent student was enrolled in their current degree program, the parent can continue to borrow under the current limits for three additional academic year or the remainder of the dependent student’s current program, whichever comes first.

The U.S. Department of Education (ED) is choosing to implement this provision beginning with the 2026-27 academic year (effective July 1, 2026). Any Direct Loans packaged for the 2026-27 academic year and beyond will need to be adjusted when the student’s enrollment changes to less-than-full-time (5 credits or less for Undergraduates and 2 credits or less for Graduates) for the academic year (not just by term). Parent PLUS Loans are not subject to these adjustments for less-than-full-time study.

If you borrowed any Federal Direct Loans (including Unsubsidized or Graduate PLUS) before July 1, 2026, for the program in which you are currently enrolled, you:

• May continue borrowing under the current loan terms and limits.
• Can borrow for up to three additional academic years or until your expected degree completion date (whichever comes first).

The minimum loan amount at CU Denver is $100. Federal loan regulations do not permit borrowing solely to establish future eligibility and then immediately canceling the loan. The regulation requires schools to certify loans based on educational need and prohibits artificial or unnecessary borrowing. Additional guidance related to recent federal legislation is still pending, and institutional procedures may be updated once final rules are issued. 

After three academic years, you will be subject to the new Direct Unsubsidized limits, and you will no longer be eligible to borrow Graduate PLUS loans.

Aggregate lifetime limits remain at $31,000 for dependent undergraduates and $57,500 for independent undergraduates.

Annual borrowing on Parent PLUS Loans is now limited to $20,000 per undergraduate student and a lifetime limit of $65,000 per student. 

Yes, you might qualify as long as you have a Direct Unsubsidized Loan and/or a Graduate PLUS loan disbursed before July 1, 2026, for your new program of study.

If classes in your new program begin after July 1, 2026, you are eligible for the Direct Unsubsidized Loans under the new limits. The Graduate PLUS Loan will no longer be available. See Key Highlights above.

Direct Unsubsidized Loans: These Federal Direct Unsubsidized loans are still available to Graduate students that are enrolled in financial aid eligible programs. 

Private Student Loans: These are offered by banks, credit unions, and other lenders. Terms vary by lender and typically require a credit check. Be sure to compare interest rates, repayment terms, and borrower protections.

For more information and continuing updates on the 2026-2027 changes to federal student aid, please see the Federal Student Aid website.

Borrowers with new federal student loans originating on or after July 1, 2026, will have access to the new Standard Repayment Plan and the Repayment Assistance Plan (RAP). These are the only two repayment options available for new loans issued on or after July 1, 2026.

Borrowers with loans issued before July 1, 2026 may remain on or enroll in the current Standard, Income-Based (IBR), Graduated, Extended, or RAP repayment plans.

Borrowers currently enrolled in ICR, PAYE, or SAVE will be required to transition to either the current Standard, IBR, Graduated, Extended, or RAP repayment plans by July 1, 2028. If a transition is not made, the borrower will be automatically enrolled into RAP.

Borrowers that have loans prior to and after July 1, 2026, will only have access to the new Standard Repayment Plan and RAP. These are the only two repayment options available for borrowers with both old and new loans.

Starting July 1, 2027, economic hardship and unemployment deferments will no longer be available. There will still be a forbearance option, but it will be limited to 9 month increments during any 24-month (2 year) period. Federal loan servicers will still have the option to place borrowers in temporary forbearances throughout the life of the loans.

No changes were made to the PSLF program other than to clarify that payments made while enrolled in RAP will qualify for PSLF.