Federal financial aid for graduate students is evolving. Beginning July 1, 2026, new federal policies will change how graduate students fund their education. Most notable of these changes is the phase-out of Graduate PLUS Loans for new borrowers. While these updates may feel significant, they do not eliminate financial aid for graduate students. Instead, they will shift how students plan and combine resources for funding.
At Southern Nazarene University (SNU), many graduate students are working professionals who are balancing careers, family, and their degree programs. This necessitates that education funding strategies should be practical, flexible, and realistic. Here’s what graduate students and future graduate students should know, and how they can best prepare for funding their degree.
What’s Changing in 2026
Starting July 1, 2026, federal financial aid policies for graduate students will be updated. Graduate PLUS Loans will be phased out for new borrowers, and graduate students must be enrolled full-time to receive their full annual loan eligibility. This will change how students cover remaining tuition costs after federal loan limits are reached.
It’s important to know what is not changing:
- Graduate financial aid is still available.
- In the majority of our graduate programs, most students will still have enough funds from regular federal financial aid to cover their direct costs.
- Federal Direct Unsubsidized Loans remain an option within established limits.
- Multiple funding pathways remain available for master’s and doctoral students.
The key shift resulting from the changes is that graduate students will rely more on a combination of resources rather than a single federal loan program.
Why Funding Looks Different at SNU
SNU’s graduate programs are designed for working adults who want practical skills they can apply immediately in their current careers or to enter a new career path. Most of our programs are career-focused and practice-oriented, so they differ from traditional research university programs in a few ways.
While research grants and funded assistantships exist in higher education, they are less common in professional graduate programs and often require significant on-campus time. For many working adults, this just isn’t possible.
Instead, SNU encourages a funding approach for graduate students that combines several practical resources. Our enrollment and financial services teams work closely with students to develop a plan that helps them achieve their goals while keeping their everyday responsibilities in mind.
FAFSA Still Matters After the 2026 Changes
Even with policy changes, the Free Application for Federal Student Aid (FAFSA) remains a critical step in financial aid planning for graduate students.
By completing the FAFSA, graduate students can still access Federal Direct Unsubsidized Loans within graduate borrowing limits. These federal loans often serve as the foundation of a graduate degree funding plan and can be combined with other resources.
Key things to remember:
- Filing the FAFSA is still required for federal loan eligibility.
- Federal graduate loan options remain available, with limits.
- Filing your FAFSA early helps ensure timely processing and planning.
Employer Tuition Benefits: A High-Impact Option
For full-time professionals, employer tuition benefits can be one of the most effective ways to reduce the cost of graduate school.
SNU’s Employer Tuition Benefit Program provides a $49 per credit hour discount for employees of partner organizations. This benefit applies every term and can be combined with federal loans and scholarships.
Why this matters:
- Reduces the total cost per credit hour.
- Lowers the amount students may need to borrow.
- Works alongside FAFSA and other financial resources.
Employers can participate easily, typically by contacting SNU to confirm eligibility. SNU is committed to building partnerships with organizations to help make graduate education more affordable for their employees.
External Scholarships
Although they are often more limited than undergraduate awards, graduate student scholarships are available and can make a meaningful difference in funding your degree.
Common scholarship sources include:
- Professional associations
- Industry-specific organizations (education, business, counseling, healthcare, and more)
- Leadership, service, or demographic-based awards
Even smaller scholarships can help cover books, fees, or part of tuition. They can also be combined with other funding sources to help reduce your overall costs.
Military and Public Service Benefits
Students with military or public service backgrounds may have additional funding options.
These options may include:
- Military Tuition Assistance
- Veterans Education Benefits
- Public service-related loan programs
These benefits often work alongside federal loans, employer tuition discounts, and scholarships. Early planning is essential to making the most of any funding opportunities.
Private Student Loans: A Supplemental Option
Private student loans can help fill any remaining gaps left after federal loans and other funding resources are applied. SNU's Financial Aid Professionals have vetted many lenders, and a list of those lenders is available upon request from SNU Financial Services.
Important aspects to take into consideration:
- Private student loans are offered by banks and private lenders
- They typically require credit approval or a co-signer
- Interest rates and repayment terms vary
Private loans are best used as a supplement and strategically, not as a first step.
A Practical Funding Plan After July 2026
A common funding approach for SNU graduate students after the financial aid changes take place on July 1, 2026, may look like this:
- Complete the FAFSA to access federal loan options.
- Apply employer tuition benefits to reduce per-credit costs.
- Seek external scholarships.
- Use military or public service benefits if eligible.
- Consider private loans only if needed to fill in any remaining funding gaps.
This layered approach helps students manage costs while limiting borrowing.
Planning Ahead with SNU
Graduate students are strongly encouraged to plan ahead early and ask questions to make the most of their funding options. If you’re considering how to fund your graduate degree, helpful next steps include:
- Ask your employer about tuition benefits or reimbursement programs.
- Learn about federal loan limits and timelines.
- Research scholarship opportunities before enrollment.
- Speak with SNU enrollment and financial aid counselors.
SNU is committed to helping students understand their funding options and make informed decisions about financing their education. Our team partners with students throughout the process to support sustainable, realistic degree-funding plans.
If you’re considering graduate school at SNU, connect with our team to explore your degree and funding options to plan for your graduate experience with confidence.
