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:
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.
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.
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.
A student who does not use parent information on the Free Application for Federal Student Aid (FAFSA) and borrows loans in their own name.
A federal loan that grad students can use to help pay for their education.
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.
The maximum total amount that can be borrowed over time, not just in one year.
If you began borrowing before a rule change and meet certain conditions, you may continue under the old rules.
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.
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.
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:
Normal breaks between terms are fine, but withdrawing from a term would end this grandfathering protection.
The annual graduate loan limit will remain $20,500 per year. However, a new lifetime borrowing limit will apply:
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.
It’s important to note that a new overall student loan cap will apply across all levels of study:
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.
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:
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.
No. These changes begin July 1, 2026. Current students still have time to plan and ask questions.
It means staying enrolled without withdrawing from a term. Normal breaks between terms are fine.
SNU Financial Services can review your individual situation and help you explore next steps and options.
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.