Federal Direct Loan Changes

• The University of Notre Dame does not have the ability to grant exceptions to federal regulations, including those concerning enrollment, grandfather provisions, or federal loan eligibility.

• This information is based on the current understanding of new rules and regulations as they relate to federal student financial aid and could change with little notice. We will update and add to this page as additional guidance is received from the U.S. Department of Education.

The One Big Beautiful Bill Act (H.R.1), signed into law on July 4, 2025, includes significant changes that affect all federal student loan types. These changes, which include new loan limits, proration for less than full-time enrollment, and changes to loan repayment programs, will take effect on July 1, 2026.

Student borrowers who received federal direct loans at the University of Notre Dame prior to July 1, 2026, will be considered grandfathered under the current federal loan rules. The grandfathering provisions end June 30, 2029, or when the student reaches the normal end of their program, whichever occurs first.

Grandfathered borrowers:

• Undergraduate - a student enrolled at the University of Notre Dame in an undergraduate program and you borrowed a Federal Direct Loan prior to July 1, 2026.
• Graduate/Professional - student enrolled at the University of Notre Dame in a graduate/professional program and you borrowed a Federal Direct Loan for that program prior to July 1, 2026.

Note:  Students who separate from the University will no longer be eligible for the grandfathered provision.

New Borrowers:

You will be a new borrower in 2026-2027 if you will be:

• Enrolled as a student at the University of Notre Dame for the first time in 2026-2027, or

• A continuing graduate student who will be enrolled in a different program in 2026-2027 than in 2025-2026, or

• A student (undergraduate or graduate) returning to the same program in 2026-2027, but never had a Direct Loan disbursed for that program before July 1, 2026.

If you are enrolled, and have a federal direct loan for your program that disburses prior to July 1, 2026, you are a grandfathered borrower.

Beginning with the 2026-27 academic year (effective July 1, 2026), we will be required to adjust your loan limit for less-than-full-time enrollment. This applies to all undergraduate, graduate, and professional student Direct Loan borrowers.

This includes the following loans for both new borrowers and grandfathered borrowers: Direct Subsidized Loans, Direct Unsubsidized Loans, and Federal Direct Graduate PLUS Loans. 

No, you and your parents cannot opt out of the legacy provisions; you must continue to borrow under the pre-July 1, 2026, loan limits.

When considering what repayment plan you are eligible for and which plan is best for you, we encourage you to contact your loan servicer. You can find your loan servicer name and contact information on your federal student account at studentaid.gov.

There is now a distinction, defined by the government, between “graduate” and "professional" programs, and there are different annual and lifetime borrowing limits for each.

Students enrolled in graduate programs can continue to borrow up to $20,500 per year in the Federal Direct Unsubsidized Loan. The aggregate borrowing limit for graduate students is now $100,000, which includes all unsubsidized federal loans you borrowed for all graduate programs you may have been enrolled in.

Students enrolled in professional programs can now borrow up to $50,000 per year in the Federal Direct Unsubsidized Loan. The aggregate borrowing limit for professional students is now $200,000, which includes all unsubsidized federal loans you borrowed for all professional programs and all unsubsidized loans that you borrowed for graduate programs.

New borrowers will not be able to borrow Federal Direct Graduate PLUS Loans.

Grandfathered graduate and professional borrowers will be able to continue to borrow under the Federal Direct Graduate PLUS Loan program until completing their program, or for three additional years, whichever is less.

Note: Students who separate from the University will no longer be eligible for the grandfathered provision.

Currently, the University of Notre Dame has one graduate level program considered Professional under the new federal guidelines: Law J.D. 

The good news is that there are no changes to the amounts undergraduates can borrow each year in student loans. But the amounts students borrow will count towards the new lifetime borrowing limit, which is $257,500 for all Federal Direct Student Loans.

First time borrowers of the Parent PLUS loan program will have an annual limit of $20,000 per student, per year, with a $65,000 lifetime limit per dependent student.

Existing (grandfathered borrowers) of Parent PLUS loan program who have borrowed for their current student at the University of Notre Dame before July 1, 2026, can continue with the current limits for three more years or until your program ends, whichever is less.

Note: Students who separate from the University will no longer be eligible for the grandfathered provision.

Yes, but if you are considered a new borrower the combined amounts both parents can borrow for you is capped at a total of $20,000 per year  (in other words, $10,000 per parent).  The aggregate total parents may borrow per student is $65,000.

• Full Legislation Text

• U.S. Department of Education Updates

• Federal Student Aid One Big Beautiful Bill Act Updates

• Federal Student Aid Announcements and Events