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.
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:
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.
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.
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:
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:
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.
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:
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.
Students with military or public service backgrounds may have additional funding options.
These options may include:
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 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 loans are best used as a supplement and strategically, not as a first step.
A common funding approach for SNU graduate students after the financial aid changes take place on July 1, 2026, may look like this:
This layered approach helps students manage costs while limiting borrowing.
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:
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.