Last updated March 6, 2026.
2026 Federal Student Aid Changes: Frequently Asked Questions (FAQ)
Federal legislation passed by Congress and signed into law by the President last year makes significant changes to the U.S. tax code, as well as federal programs that receive mandatory funding, such as federal student loans. We realize many Lancers and their families have questions about how these changes might affect their ability to pay for college. This page will answer many of these questions and will be updated with more information as it becomes available.
Key Takeaways:
- Elimination of the Graduate PLUS Loan for new borrowers
- Federal Direct Loan eligibility prorated for students enrolled less than full time (under 24 credits for undergraduates; under 12 credits for graduates)
- Continued availability of Direct Student Loans for undergraduates and graduate students
- Parent PLUS Loans for undergraduate students remain available
- New annual and aggregate borrowing limits across federal loan programs
- Limited “legacy” borrowing provisions for certain prior borrowers
- Changes take effect beginning July 1, 2026
- Current 2025-26 financial aid offers are not impacted
Undergraduate Students
Are undergraduate loans changing?
No. There are no changes to Direct Subsidized or Direct Unsubsidized Loan annual or aggregate limits for dependent or independent undergraduate students.
What federal loans are still available to undergraduates?
- Direct Subsidized Loans (eligible for students with demonstrated financial need); the government pays interest while the student is enrolled at least half-time)
- Direct Unsubsidized Loans (available regardless of financial need; interest accrues while the student is enrolled)
Annual borrowing limits range from $5,500 to $12,500, depending on dependency status and grade level.
How many credit hours do I need to take to receive full federal loan eligibility?
Beginning July 1, 2026, Federal Direct Loan eligibility will be prorated for students enrolled less than full-time. Full‑time enrollment is defined as 24 credit hours across the fall and spring terms. If you take fewer than 24 credits for the academic year, your Federal Direct Loan amounts may be reduced proportionally to the actual credit load (similar to how Pell Grant eligibility is calculated).
Do other types of financial aid use the same 24‑credit requirement?
No. Merit scholarships, state aid, and institutional grants each have their own enrollment requirements, and many do not use the 24-credit federal standard. These rules vary by program and are separate from federal loan regulations.
Does Parent PLUS Loan eligibility change if I take a semester off?
Yes. Changes to your enrollment can affect Parent PLUS Loan eligibility. If you take a semester off, it may impact your parent’s eligibility for the loan, and eligibility is reviewed every academic year. Be sure to contact the Office of Financial Aid before making any changes to your enrollment.
What happens if a Parent PLUS Loan is denied?
If a Parent PLUS Loan is denied, dependent students may become eligible for a limited additional amount of Direct Unsubsidized Loan funding. In these cases, the student may borrow up to an additional $4,000 per year (freshman or sophomore) or $5,000 per year (junior or senior) in Direct Unsubsidized Loans.
Can Longwood override federal loan limits or eligibility?
No. The Financial Aid Office cannot override federal eligibility requirements or federal loan limits.
Will there be upcoming changes to Pell Grants?
Yes. Beginning with the 2026–27 award year, Federal Pell Grant eligibility will also consider whether a student’s nonfederal grants and scholarships (state, institutional, private, etc.) fully cover their Cost of Attendance (COA). This change is expected to affect only a small group of students, as most students do not receive enough outside aid to fully meet their COA.
Who should I contact if I still have additional questions about upcoming federal student loan changes?
Because individual circumstances vary, students should contact Financial Aid at 434-395-2077 or finaid@longwood.edu to discuss their specific eligibility, borrowing options and financial planning considerations.
Undergraduate Parents (New Borrowers)
How are Parent PLUS Loans affected by these changes?
Parent PLUS Loans remain available, but new federal borrowing limits now apply to new Parent PLUS borrowers.
What are the new Parent PLUS borrowing limits?
For new Parent PLUS borrowers:
- $20,000 annual cap per dependent student
- $65,000 lifetime (aggregate) cap per dependent student
Parents may continue to borrow up to the cost of attendance, provided the annual amount does not exceed $20,000 and the lifetime cap has not been reached. The lifetime cap effectively limits borrowing to an average of approximately $16,250 per year over four years.
Does each parent get their own Parent PLUS borrowing limit?
No. Parent PLUS limits apply per student, not per parent. If more than one parent borrows Parent PLUS for the same student, the amounts borrowed count toward the same annual and lifetime limits.
What happens if my student takes longer than four years to graduate?
If you are subject to the new Parent PLUS limits, you may reach the lifetime cap before your student completes their program. Planning ahead for all years, not just the first year, and managing borrowing early is important. Contact the Financial Aid Office if you anticipate reaching borrowing limits.
Can Longwood override federal loan limits or eligibility?
No. The Financial Aid Office cannot override federal eligibility requirements or federal loan limits.
Who should I contact if I still have additional questions about upcoming federal loan changes?
Because individual circumstances vary, students should contact Financial Aid at 434-395-2077 or finaid@longwood.edu to discuss their specific eligibility, borrowing options and financial planning considerations.
Undergraduate Parents (Returning Borrowers)
Who qualifies for Parent PLUS “legacy” borrowing?
If the student or parent received a Parent PLUS Loan or any Federal Direct Loan before July 1, 2026, you may qualify for “legacy” borrowing. This allows your family to continue borrowing under the older, higher loan limits for up to three more years, even after the new annual and lifetime limits go into effect.
What benefits do “legacy” Parent PLUS borrowers retain?
“Legacy” borrowers:
- Are not subject to the $20,000 annual cap
- Are not subject to the $65,000 lifetime cap
- May continue borrowing up to the full cost of attendance
Does Parent PLUS “legacy” eligibility change if my student takes a semester off?
Yes. Enrollment changes can affect eligibility. A break in enrollment may impact “legacy” status, and eligibility is reviewed each academic year. Families should contact the Office of Financial Aid before making enrollment changes.
Who determines “legacy” eligibility?
“Legacy” eligibility is determined solely by the U.S. Department of Education.
Can Longwood override federal loan limits or eligibility?
No. The Financial Aid Office cannot override federal eligibility requirements or federal loan limits.
Who should I contact if I still have additional questions about upcoming federal loan changes?
Because individual circumstances vary, students should contact Financial Aid at 434-395-2077 or finaid@longwood.edu to discuss their specific eligibility, borrowing options and financial planning considerations.
Graduate Students
What are the main changes to graduate student loans?
The most notable change is the elimination of the Federal Direct Graduate PLUS Loan program for new borrowers, effective July 1, 2026. Graduate students will now be limited primarily to Direct Unsubsidized Loans, with an annual cap of $20,500 and lifetime loan limits of $100,000 (not including undergraduate loans). New borrowers are defined as anyone who has not had a federal student loan disbursed prior to July 1, 2026.
How many credit hours do I need to take to receive full federal loan eligibility?
Beginning July 1, 2026, Federal Direct Loan eligibility will be prorated for students enrolled less than full-time. Full‑time enrollment is defined as 12 credit hours across the fall and spring terms. If you take fewer than 12 credits for the academic year, your Federal Direct Loan amounts may be reduced proportionally to the actual credit load.
Does Longwood offer the types of professional degree programs that are affected by the new professional loan limits?
No. Longwood currently does not offer any graduate programs classified as professional degree programs (such as medical, dental or law programs) as defined by the U.S. Department of Education. The new loan limits specific to professional programs do not apply to Longwood students (graduate or undergraduate).
Is there a “legacy” provision for graduate students who are currently enrolled?
Yes. If a borrower has a federal student loan (Direct Unsubsidized or Graduate PLUS) disbursed in their current academic program before July 1, 2026, the student can borrow under current annual and lifetime loan limits for three academic years or the remainder of their expected time to graduation, whichever is less.
Who qualifies as a “legacy” Graduate PLUS borrower?
Graduate students may qualify for “legacy” access if:
- They borrowed under their current program of study, and
- They had a Federal Direct Loan disbursed prior to July 1, 2026, and
- They remain in the same eligible program, and
- They remain continuously enrolled with no significant break (you are still considered continuously enrolled even if you don’t take summer classes).
Legacy eligibility is available for up to three years and remains subject to federal credit approval standards.
Who does NOT qualify for Graduate PLUS “legacy” access?
Students who:
- Change programs (Note: Changing a track or concentration within the same program does not count as a program change and does not impact “legacy” eligibility.
- Stop or pause enrollment for a period that is deemed a significant break (as defined in the next question)
- Never previously borrowed a Federal Direct Loan
How does enrollment in graduate programs with different terms affect “legacy” status?
In our graduate programs, each standard term consists of multiple parts. Our graduate 8-week and 7-week terms have Parts A and B, while the 5-week term has Parts A, B and C. “Legacy” eligibility and status are based on continuous enrollment in the program, not on attendance in every individual part within a term.
If a student enrolls in at least one part (A, B or C, as applicable) during the term and continues into the next term, this is not considered a significant break in enrollment, and the student will retain “legacy” status. However, if a student is not enrolled in any part of the term (sits out all parts for that term), this is considered a significant break in continuous enrollment, and the student will lose “legacy” status. Summer, however, is treated as a non‑required term—students may sit out the entire summer without this being considered a break in enrollment, and their “legacy” status will remain intact.
Who determines “legacy” eligibility?
Legacy eligibility is determined solely by the U.S. Department of Education.
Will this change significantly increase graduate student financial burden at Longwood?
Because Longwood’s graduate tuition is generally moderate compared to professional programs, the overall impact is expected to be limited but still meaningful for some students.
Can Longwood override federal loan limits or eligibility?
No. The Financial Aid Office cannot override federal eligibility requirements or federal loan limits.
Who should I contact if I still have additional questions about upcoming federal student loan changes?
Because individual circumstances vary, students should contact Financial Aid at 434-395-2077 or finaid@longwood.edu to discuss their specific eligibility, borrowing options and financial planning considerations.
* This information is based on the current understanding of new rules and regulations as they relate to federal financial aid, and is subject to change. We will update this page as additional guidance is received from the U.S. Department of Education.