Financial Aid
Financial Aid Changes Effective 2026-2027
On July 4, 2025, HR 1 – Public Law No. 119–21, known as the “Big Beautiful Bill” or OBBB (One Big Beautiful Bill), was signed into law. This legislation introduces many changes to financing higher education.
Key Changes at a Glance (Effective 2026–2027):
- Graduate PLUS Loans phased out
- New loan limits for graduate students
- Parent PLUS Loan limits
- New federal loan repayment plans
We are awaiting official guidance from the Department of Education; however, the Office of Financial Aid has provided a summary below of how this law may impact financial aid beginning in the 2026-2027 academic year. As of the last update made to this page (January 30, 2026), the Department of Education has not yet provided official guidance. The information contained here is based on guidance provided by the National Association of Student Financial Aid Administrators (NASFAA), an organization which has worked closely with the Department of Education to obtain and share preliminary information with institutions.
Please note that final determinations and interpretations of the law may be updated to reflect official Department of Education guidance once provided.
Student Loan Implications for the 2026-2027 Academic Year
Federal Direct Graduate PLUS Loans Will Be Phased Out
New graduate and professional students starting with the 2026-2027 year will no longer be able to borrow Federal Direct Graduate PLUS Loans beginning July 1, 2026.
Current students that enrolled in a graduate/professional program for the 2025-2026 year or before may continue to borrow Graduate PLUS Loans for up to 3 more years (2026-2027, 2027-2028, and 2028-2029), or until graduating from their current program of study*—whichever comes first. This means graduate students will not be eligible to utilize Graduate PLUS Loans after 2025-2026 if they change degree level (masters to post-baccalaureate certificate), program (master’s in Law Enforcement and Justice Administration to master’s in business, etc.) , or concentration within degree. Students need to have borrowed a Direct Loan (Unsubsidized OR Graduate PLUS) to be considered eligible to borrow a Graduate PLUS Loan for up to 3 academic years after 2025-2026.
Students will lose eligibility for any part of the remaining 3 years of eligibility if they withdraw from or take a term away from their program.
New Unsubsidized Graduate Loan Limits
Effective July 1, 2026 (excluding undergraduate loan amounts):
| Annual (Academic Year) Limit | Aggregate (Lifetime) Limit | |
|---|---|---|
| Graduate Students | $20,500 | $100,000 |
| Professional* Students | $50,000 | $200,000 |
*Professional degrees are largely limited to Pharmacy (Pharm D.), Dentistry (D.D.S or D.M.D), Veterinary Medicine (D.V.M), Chiropractic (D.C. or D.C.M.), Law (L.L.B or J.D.), Medicine (M.D.), Optometry (O.D.), (Osteopathic Medicine (D.O.), Podiatry (D.P.M, D.P., or Pod. D.), Clinical Psychology (PsyD. Or Ph.D.), and Theology (M.Div., or M.H.L.).
Parent PLUS Loan Limits
Undergraduate student loans (Subsidized and Unsubsidized) are NOT changing; however, Parent PLUS Loans offered to undergraduate students will have a new annual academic year limit of $20,000, and an aggregate (lifetime) limit of $65,000.
The above is effective July 1, 2026. Parents who borrowed in 2025-2026 or before* can continue to borrow under current limits for 3 years (2026-2027, 2027-2028, and 2028-2029) or until their student graduates—whichever comes first.
*Limited guidance provided thus far indicates that undergraduate students will remain eligible for legacy provisions if they change their major.
Federal Direct Loan Annual Loan Limits - Undergraduate
| Dependent/ Undergraduate | Independent/ Undergraduate | |
|---|---|---|
| Freshman (0-29 credit hours) | $5,500 | $ 9,500 |
| Sophomore (30-59 credit hours) | $ 6,500 | $10,500 |
| Junior/Senior (60+) | $7,500 | $ 12,500 |
| Aggregate (Lifetime) Limit | $31,000 | $57,500 |
| Parent PLUS | $20,000 annually; $65,000 aggregate | Not eligible for PLUS |
Students will lose eligibility for any remaining extended eligibility for Parent PLUS Loans at 2025-2026 limits if they withdraw from or are not enrolled in 2026-2027, 2027-2028, or 2028-2029. For example, if a student is enrolled through fall 2027, but does NOT enroll in spring 2028, they would not be eligible for 2025-2026-level limits when returning to their program in fall 2028.
Part-Time Enrollment and Loan Eligibility
Federal direct loans are required to be prorated for all students (undergrad and graduate) enrolled less than full-time beginning with the 2026-2027 academic year. For undergraduate students 12 hours is full-time for financial aid purposes; for graduate students 9 hours is full-time for financial aid purposes.
Schedule of Reduction Examples
Dependent Undergraduate
| Registered Fall Hours | Registered Spring Hours | Percentage of FT Enrollment | Annual Loan Eligibility | Final Annual Loan Amount |
|---|---|---|---|---|
| 12 | 12 | 24/24 = 100% | $5,500 | $5,500 |
| 9 | 9 | 18/24 = 75% | $5,500 | $4,125 |
| 6 | 6 | 12/24 = 50% | $5,500 | $2,750 |
| 3 | 3 | 6/24 = 25% | $5,500 | $0 |
Note: This example uses the first year (freshman) annual loan maximum of $5,500. Visit studentaid.gov > Loan Limits to view annual loan limits for all careers. You must be enrolled at least halftime (50% of full-time enrollment) to be eligible for a federal loan.
Independent Undergraduate
| Registered Fall Hours | Registered Spring Hours | Percentage of FT Enrollment | Annual Loan Eligibility | Final Annual Loan Amount |
|---|---|---|---|---|
| 12 | 12 | 24/24 = 100% | $9,500 | $9,500 |
| 9 | 9 | 18/24 = 75% | $9,500 | $7,125 |
| 6 | 6 | 12/24 = 50% | $9,500 | $4,750 |
| 3 | 3 | 6/24 = 25% | $9,500 | $0 |
Note: This example uses the independent, first year (freshman) annual loan maximum of $9,500.
Graduate Student Annual Loan Limit
The chart demonstrates how your annual Direct Unsubsidized Loan will be adjusted based on enrollment in a reduced number of credits.
| Academic Year Combined Course Load (Credits) | Loan Limit Percentage | Estimated Dollar Amount of Loan |
|---|---|---|
| 18 | 100% | $20,500 |
| 17 | 94% | $19,270 |
| 16 | 89% | $18,245 |
| 15 | 83% | $17,015 |
| 14 | 78% | $15,990 |
| 13 | 72% | $14,760 |
| 12 | 67% | $13,735 |
| 11 | 61% | $12,505 |
| 10 | 56% | $11,480 |
| 9 | 50% | $10,250 |
Note: You must be enrolled in 9 credits per semester (18 credits per academic year) to be considered full-time enrollment as a graduate student.
Graduate — Even Split
| Registered Fall Hours | Registered Spring Hours | Percentage of FT Enrollment | Annual Loan Eligibility | Final Annual Loan Amount |
|---|---|---|---|---|
| 12 | 12 | 24/18 = 100% | $20,500 | $20,500 |
| 9 | 9 | 18/18= 100% | $20,500 | $20,500 |
| 6 | 6 | 12/18 = 67% | $20,500 | $13,735 |
Note: $20,500 is the Annual Loan Eligibility Maximum for each year of a student’s graduate program.
Changes to Federal Loan Repayment
For loans disbursed after July 1, 2026, income-driven repayment plans will be replaced by a new Repayment Assistance Program (RAP). Borrowers of loans disbursed after July 1, 2026 will be able to choose RAP or a standard 10-year or 25-year repayment plan.
Borrowers of loans disbursed before July 1, 2026 will have the option to remain in existing income-driven repayment plans (IBR, PAYE, SAVE) but must enroll by June 30, 2028. They will be moved to RAP if they miss this deadline.
Please note that OSFA generally recommends that borrowers contact their loan servicer(s) or review information available from the Department of Education concerning federal loan repayment.
Pell Grant Changes
Western Illinois University does not currently offer the type of programs that are impacted by changes to Pell eligibility.
Updated Information
The Financial Aid Office and Western Illinois University are tracking changes and will update this website as new information or official guidance from the Department of Education becomes available. We appreciate your patience as we navigate these changes and share what we learn with our students!
Last updated: August 10, 2026
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