What This Means For You
Starting on July 1, 2026, some federal financial aid rules for graduate students will change. If you’re currently enrolled in, or are considering enrolling in, a master’s or doctoral program, this information is meant to help you plan ahead with confidence.
Here are the big-picture takeaways:
- Grad PLUS Loans will be ending for new borrowing after July 1, 2026
- New lifetime borrowing limits will apply to graduate students
- Full-time enrollment will be required to receive full loan eligibility
Financial aid policies can be complex, and updates may bring new questions. As you review this information, remember that there is time to prepare and resources available to support you. The Southern Nazarene University (SNU) Financial Services team can help clarify your options and work with you to plan for your academic and professional journey.
Before We Dive Into the Details
Graduate students come to SNU with full plates. They manage careers, families, ministries, and leadership responsibilities. Financial aid language often feels dense, and policy changes can feel overwhelming, especially when you’re already managing so much.
Graduate students can still complete the FAFSA and access federal Direct Unsubsidized Loans up to the remaining graduate loan limits, which remain an important funding source. Many students further reduce costs through employer tuition benefits, including Southern Nazarene University’s Employer Tuition Benefit Program, which provides a $ 49-per-credit-hour discount for employees of partner organizations and is easy for employers to certify. Additional options include external scholarships, military and public service education benefits, and, when needed, private student loans to supplement other funding sources. While the financial aid landscape is changing, graduate education remains attainable through thoughtful planning and by combining multiple funding options.
Before we walk through the specific updates, it may be helpful to review the Financial Aid Glossary below.
Glossary: Understanding Financial Aid Terms
Graduate financial aid can come with a lot of technical terms and fine print. Many of these phrases appear frequently in financial aid conversations and on financial aid forms. We know they can be confusing at first, so please think of this as a simple guide to help you feel more confident as you read through the changes below.
Independent Student
A student who does not use parent information on the Free Application for Federal Student Aid (FAFSA) and borrows loans in their own name.
Grad PLUS Loans
A federal loan that grad students can use to help pay for their education.
Full-Time Enrollment
Taking enough credit hours in a term to be considered full-time. For SNU graduate students, full-time is defined as 6 hours per semester.
Aggregate (Lifetime) Limit
The maximum total amount that can be borrowed over time, not just in one year.
Grandfathered/Legacy Rules
If you began borrowing before a rule change and meet certain conditions, you may continue under the old rules.
Key Financial Aid Changes for Graduate Students
As you read through these changes, please remember that you’re not expected to figure this out alone. SNU’s Financial Services team is here to walk you through everything, step by step. Our counselors are happy to meet with you. Whether you want to talk face-to-face on campus or virtually through an online meeting, they're here to help you.
With that in mind, here are the key changes for graduate students that will take place beginning in the 2026-2027 academic year.
Change #1: Grad PLUS Loans are Ending
After July 1, 2026, Grad PLUS Loans will no longer be available for new borrowing.
For many graduate students, Grad PLUS Loans have been an important source of funding to cover tuition and living expenses while pursuing their advanced degrees.
Grandfathering Provision
If you have received a Direct Loan before July 1, 2026, you may continue under the current rules for up to three years, as long as you:
- Remain continuously enrolled
- Stay in the same graduate program
Normal breaks between terms are fine, but withdrawing from a term would end this grandfathering protection.
Change #2: Updated Graduate Loan Limits
The annual graduate loan limit will remain $20,500 per year. However, a new lifetime borrowing limit will apply:
- Graduate students will have a $100,000 aggregate (lifetime) borrowing limit for graduate study
- Undergraduate loans will no longer count towards this limit
Students will automatically fall under the applicable borrowing limits based on their situation. There is no option to choose between old and new limits.
If you’re unsure of how close you may be to these limits, a Financial Services counselor can review your borrowing history with you and help you understand what this means for your program timeline.
Change #3: New Overall Student Loan Cap
It’s important to note that a new overall student loan cap will apply across all levels of study:
- $257,500 total federal student loan limit
- Parent PLUS loans borrowed on your behalf do not count toward this total
This cap includes both undergraduate and graduate borrowing, but does not include Parent PLUS loans taken out by your parents on your behalf. Legacy provisions apply where applicable, depending on when you began borrowing. Your SNU Financial Services counselor will be happy to walk you through your specific situation and help you understand where you fall under the new loan limit cap based on your borrowing history.
Change #4: Full-Time Enrollment Requirement
Beginning in the 2026-2027 academic year (which starts July 1, 2026), graduate students must be enrolled full-time to receive their full annual loan eligibility. If you’re unsure as to whether or not you are meeting full-time requirements for your program, Financial Services can help you review the requirements and come up with a plan if you need help meeting these requirements. It’s important to note that:
- If you start the term as a full-time student and receive loans based on that status, but later drop a class and fall below full-time, your loan amount for the next term could be lowered to reflect the change.
- This change does not include a grandfathering provision
We recognize that many graduate students balance school with work and family commitments. If you’re uncertain of how full-time enrollment can fit into your schedule, SNU Financial Services can help you think through course load and financial planning options.
Graduate Student Financial Aid FAQ
Will my current funding change right away?
No. These changes begin July 1, 2026. Current students still have time to plan and ask questions.
What does “continuously enrolled” mean?
It means staying enrolled without withdrawing from a term. Normal breaks between terms are fine.
What if I’m close to my borrowing limit?
SNU Financial Services can review your individual situation and help you explore next steps and options.
You’re Not in This Alone
Graduate school is a meaningful investment in your future, and changes to financial aid can feel like a lot to process. That’s why SNU is sharing this information early. We want you to know that you have time, support, and options.
Our Financial Services team is here to walk with you through the details, explain your options in clear language you can understand, and help you create a plan that fits your academic and professional goals and busy lifestyle. You can meet with a counselor on campus or schedule a virtual appointment. Our counselors are happy to help in whichever format works best for you.
If you think any of these updates may affect you, we encourage you to reach out soon. A short conversation now can help you step confidently into the future with a purpose and a plan.
