Federal Loan Changes

Key updates to federal financial aid policies for Wake Forest University undergraduate and graduate students, effective for the 2026-27 academic year and future terms.

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How This Affects You

To understand how the federal changes affect you as a student, please select the link that best describes you:

• I am a current undergraduate student: Enrolled in an undergraduate program and continuing in the 2026-27 academic year.
• I am a future undergraduate student: Starting an undergraduate program in Fall 2026 or later.
• I am a current graduate student: Enrolled in a graduate or professional program and continuing in the 2026-27 academic year.
• I am a future graduate student: Starting a graduate or professional program in Fall 2026 or later.
• I am a borrower in school: In school and haven’t started repaying loans.
• I am a borrower in repayment: Actively repaying student loans or in deferment/forbearance.

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Current Undergraduate Students

What’s Staying the Same:

Undergraduate Loan Limits

Subsidized and Unsubsidized loan limits remain the same:

• Annual: $5,500-$12,500 (based on year and dependency status)
• Total: $31,000 (dependent) or $57,500 (independent)
• U.S. Department of Education: Loan Amount Limits

What’s Changing:

Parent PLUS Loan Limits: Updated annual and lifetime borrowing limits apply to Parent PLUS loans; limits are per student, not per parent borrower:

• Annual: $20,000 per year, per student
• Total: $65,000 per student

If you do not qualify for an exception and your parent(s) plan to borrow in excess of new limits, consider private education loan options. 

Reduced Annual Loan Limits for Part-Time Enrollment

Limited loan eligibility: Registering for fewer than 12 credits will lower your maximum borrowing limit for that specific semester.

• How it works: If you take six credits in the fall (half of a full-time load), the fall portion of your annual federal loan limit is reduced by 50 percent.
• The Impact: If your requested loan amount for the fall semester is higher than this new prorated cap, your aid must be adjusted downward to comply with the limit.

If you plan to enroll part-time and your federal loans are reduced leaving a funding gap, consider private education loan options.

Pell Grant Eligibility

Updated eligibility criteria: Certain types of income/assets are either included or excluded for some students, and new eligibility limitations apply:

• Certain Assets Excluded: Family businesses (≤100 employees), family farms, and commercial fishing operation assets will be excluded.
• Foreign Income Included: Income from foreign sources will be added to adjusted gross income (AGI).
• Student Aid Index (SAI) limitation: Students with SAI ≥ $14,790 (2x the current maximum Pell award) will not be eligible.
• Other grants and scholarships limitation: Students with total grants and scholarships from non-federal sources ≥ total estimated cost of attendance will not be eligible for Pell.

Action: None required — Wake Forest University Need-Based Scholarship eligible students are not impacted. If your Pell Grant changes, your WFU Need-Based Scholarship will be adjusted automatically to compensate for the difference.

Exception for Current Students (a.k.a. “legacy” or “grandfather” provisions):

Most active students will qualify for a temporary waiver, delaying the new Parent PLUS limits for up to three academic years. This means your parents can borrow under the legacy guidelines for the lesser of three years or the remaining duration of your studies, as long as you fulfill all of the following conditions:

• You are enrolled as of June 30, 2026.
• You or your parent(s) previously borrowed a federal loan for your academic program.
• You remain in the same academic program through graduation.

New rules for part-time loan limits and Pell Grant eligibility cannot be waived and take effect July 1, 2026, for the 2026-27 academic year.

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Future Undergraduate Students

Federal Student Loans

Subsidized and Unsubsidized loan limits remain the same.

Undergraduate Loan Limits

• Annual: $5,500-$12,500 (based on year and dependency status)
• Total: $31,000 (dependent) or $57,500 (independent)
• U.S. Department of Education Loan Amount Limits

Parent Plus Loan Limits

New limits: Updated annual and lifetime borrowing limits apply to Parent PLUS loans;  limits are per student, not per parent borrower:

• Annual limit: $20,000 per year per student
• Lifetime limit: $65,000 total per student

If you borrow $20,000 annually during your student’s first three years, your remaining Parent PLUS limit drops to just $5,000 for their senior year (unless Congress adjusts the lifetime limit). If your parents plan to borrow in excess of new Parent PLUS limits, consider private education loan options.

Reduced Annual Loan Limits for Part-Time Enrollment

Taking fewer than 12 credits in a semester will proportionally lower your federal loan limit for that term. For example, enrolling half-time (six credits) means your available loan allocation for that semester is cut by 50 percent. If your requested loan amount for that term is higher than this recalculated cap, your financial aid package will automatically be reduced to match the new limit.

Program Accountability

Under new federal regulations, all U.S. undergraduate programs must prove that their graduates out-earn typical high school diploma holders. Consequently, programs that fail to meet these employment outcome thresholds risk losing their eligibility for federal student loans starting in the 2030-31 academic year.

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Current Graduate Students

What’s Changing:

Graduate PLUS loans are no longer available starting July 1, 2026. If you are a current student and have never borrowed direct loan funds for your current programs, see the information for New Borrowers. Current borrowers may qualify for an exception.

Also, the U.S. Department of Education issued regulations defining graduate vs. professional programs in Spring 2026. If you do not qualify for an exception and your program costs exceed new limits, please see the information for New Borrowers. You may wish to also consider borrowing  private education loan options to assist with financing your educational costs. 

Reduced Annual Loan Limits for Part-Time Enrollment

Enrolling less than full-time (fewer than 12 credits in the fall, spring, or summer) triggers a proportional reduction in your yearly loan cap. For instance, registering for a half-time load of six credits during the fall semester will slice that term’s allocated borrowing limit by 50 percent. If your anticipated fall borrowing surpasses this newly calculated threshold, your loan must be adjusted downward to meet the lower cap. If you plan to enroll part-time and your federal loans are reduced leaving a funding gap, consider private education loan options.

Exception for Current Borrowers:

• Most currently enrolled students will qualify for a temporary waiver, delaying the new Graduate PLUS limits. This means you may be able to borrow under the legacy guidelines for up to three academic terms.
• You may continue borrowing Graduate PLUS loans under prior limits for up to three academic years (or the remainder of your academic program, whichever is less) if you meet all of the following criteria:
  • You are enrolled as of June 30, 2026.
  • You previously borrowed a federal Direct loan for your academic program.
  • You remain in the same academic program through graduation and maintain continuous enrollment.
• The OBBB does not provide exceptions for reduced annual loan limits for part-time enrollment.

What’s Staying the Same:

No Interest Forbearance for Medical/Dental Residents: Medical and dental residents can access forbearance during residency with no interest accrual for up to four 12-month periods.

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Future Graduate Students

Federal Student Loans

Graduate PLUS loans are no longer available starting July 1, 2026. 

Also, the U.S. Department of Education issued regulations defining graduate vs. professional programs in Spring 2026. If you do not qualify for an exception and your program costs exceed new limits, consider private education loan options.

New Annual, Aggregate, and Lifetime Total Loan Limits – New Borrowers*
Program Type	Annual Limit	Aggregate Limit	Lifetime Maximum
Graduate
Graduate School of Arts and Sciences	$20,500	$100,000	$257,500 — All undergraduate, graduate, and professional
Business School	$20,500	$100,000
Divinity School: MDiv	$50,000	$200,000
Divinity School: MA in Religion and DMin	$20,500	$100,000
Law School: MLS, LLM, and SJD	$20,500	$100,000
School of Professional Studies	$20,500	$100,000
Professional
Law School: Juris Doctor (JD)	$50,000	$200,000

* New amount/limits are only for new student borrowers. Continuing students will follow previous rules.

Reduced Annual Loan Limits for Part-Time Enrollment

Limited loan eligibility for part-time students: In most instances, enrolling below the full-time threshold of 12 credits per semester (whether Fall, Spring, or Summer) requires a proportional reduction of your annual loan limit. For example, registering for a half-time load of six credits during the Fall term slashes that semester’s loan allocation by 50%. If your scheduled borrowing for the Fall exceeds this recalculated threshold, the loan amount must be lowered to comply with the new cap.

Program Accountability

Under new federal regulations, all U.S. graduate and professional programs must prove that their alumni earn more than individuals holding only a bachelor’s degree in the same field of study. Consequently, programs that fail to meet these career outcome standards risk losing their eligibility for federal student loans starting in the 2030-31 academic year.

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Borrowers Currently In School

New and Updated Repayment Plans

Simplified Repayment Plan Options: After graduation (or otherwise ceasing enrollment), you’ll choose one repayment plan option for all your federal student loans:

Standard Repayment Plan (SRP)

• Fixed payments over 10 to 25 years (based on debt amount)
• Pays off loans fastest, lowest total interest

Repayment Assistance Plan (RAP)

• Income-based payments (minimum $10/month)
• Forgiveness after 30 years (360 payments)
• Good for variable income or public service careers

Income-Based Repayment (IBR)

• Only available if you borrowed prior to July 1, 2026, and do not borrow after July 1, 2026
• Payments capped at 10 percent of discretionary income
• Forgiveness after 20 years.

Public Service Loan Forgiveness (PSLF)

Current PSLF requirements continue until further notice:

• Full-time work for qualifying employer (government/eligible nonprofit)
• Payments made under a qualifying repayment plan
• 120 qualifying payments

The U.S. Department of Education will clarify which new repayment plans qualify for PSLF, tentatively in the Spring of 2026.

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Borrowers Currently in Repayment

Transition to New Repayment Plans:

Your existing federal loan terms are not changing: However, available repayment plan options are changing. You will receive more information about transitioning to an available repayment plan directly from your loan servicer.

If you are currently in a SAVE or PAYE repayment plan:

• Current SAVE and PAYE repayment plans are being eliminated.
• Interest began accruing on Aug. 1, 2025.
• No payment requirement, but interest is accumulating.
• To avoid interest accumulation, contact your student loan servicer to select an available repayment plan as soon as possible.

Available Options after July 1, 2026:

Standard Repayment Plan

• Fixed payments over 10 to 25 years (based on debt amount)
• Pays off loans fastest, lowest total interest

Repayment Assistance Plan (RAP)

• Income-based payments (minimum $10/month)
• Forgiveness after 30 years (360 payments)
• Good for variable income or public service careers

Income-Based Repayment (IBR)

• Only available if you borrowed prior to July 1, 2026, and do not borrow after July 1, 2026
• Payments capped at 10% of discretionary income
• Forgiveness after 20 years

Current Plan	Transition Deadline	Comparable Plan Options
SAVE	July 1, 2028	RAP or IBR
PAYE
ICR	June 30, 2028
IBR	No deadline	Remain in IBR or RAP
Standard	No deadline	Remain in Standard/Graduated/Extended,or New Standard (repayment term determined by total debt)
Graduated
Extended

Parent PLUS Borrowers

New Parent PLUS loans taken after July 1, 2026, are limited to $20,000/year and $65,000 lifetime limits per child. For some families, an older child who is currently in college may qualify for an exception (prior loan limits apply), while new loan limits apply to a younger sibling in the same academic year.

For Parent PLUS loans taken prior to July 1, 2026:

• Parent Borrowers must use the Standard Repayment Plan (no penalty for early repayment)
• May not use RAP
• May consolidate to access ICR, but must transition out of ICR by June 30, 2028

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Disclaimer

Due to a court order, the U.S. Department of Education can’t enforce certain changes to the PSLF Program previously scheduled to take effect July 1, 2026. Until we update the PSLF Form, employers may use the current version to certify a borrower’s employment. Language regarding an employer’s certification that it has not engaged in illegal activities will have no effect.