2026 Federal Student Aid for College Students

Recent federal student aid changes under H.R. 1 (the budget reconciliation bill passed by the 119th Congress and signed into law on July 4, 2025) introduce new federal student loan changes that affect: 

  • borrowing limits, 
  • eligibility, and 
  • aid programs nationwide. 

Most updates will begin July 1, 2026, with the start of the 2026-2027 aid year and apply to all college and universities. 

At Kennesaw State University, the Office of Scholarships and Financial Aid will continue updating this page as federal guidance becomes available from the U.S. Department of Education. Information below is organized for undergraduate and graduate students to quickly review the federal aid updates that apply to your enrollment here at KSU. 

 

 

 

Who Is Affected by Federal Student Loan Changes?

These updates mainly affect students and families who will borrow federal loans on or after July 1, 2026, including:

  • Students starting a new undergraduate or graduate program in 2026 or later,
  • Students enrolled part-time and borrow federal loans,
  • Families using Parent PLUS Loans, and
  • Graduate students who previously relied on Graduate PLUS Loans.

Some enrolled may qualify for legacy provisions, allowing certain borrowers to continue under previous federal student aid rules for a limited period of time.  Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.

What Is Not Changing?

Some core federal aid programs will remain in place. 

Federal Aid Changes for Undergraduate Students

These are nationwide federal changes that apply to all colleges and universities. Additional details will be released by the U.S. Department of Education, and KSU will update this page as more information becomes available. 

Loan Limits for Part-Time Students

Beginning July 1, 2026, federal Direct Loan amounts will be based on the percentage of credits a student takes each term. This means:

  • Students enrolled full-time will be eligible for the full loan amount.
    • Undergraduate students are considered full-time at 12 credit hours.
  • Students enrolled part-time will receive a reduced loan amount based on enrolled credit hours.

Dropping or withdrawing from a course may reduce federal loan eligibility. Students should check with an academic advisor before making changes to their course schedule.

Parent PLUS Loan Limits

Beginning July 1, 2026, new limits will apply to Federal Parent PLUS Loans for undergraduate students.

  • Annual limit: Up to $20,000 per dependent student per award year (combined total if both parents borrow).
  • Aggregate (lifetime) limit: Up to $65,000 per dependent student over time.

Interim Exception (Legacy Provision) for Parent PLUS Loans
Parents who borrowed Parent PLUS Loans before July 1, 2026, may be able to continue borrowing under the current rules until one of the following occurs:

  • Three (3) additional academic years;  or
    • For example, the 2026-2027 academic year consists of Fall 2026, Spring 2027, and Summer 2027. 
  • The student completes their current credential/degree; or
  • The student completes their remaining eligiblity, which is determined by taking the total length of their program and subtracting the time they've already been enrolled.

Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.

What This Means
Families who rely on Parent PLUS Loans should plan ahead, since total Parent PLUS borrowing may be lower for students starting college in 2026 or later.

Pell Grant Eligibility Changes

Beginning July 1, 2026, eligibility rules for the Federal Pell Grant will change.

  • Students whose Student Aid Index (SAI) is greater than twice the maximum Pell Grant award amount will not be eligible for a Federal Pell Grant.
    • The Pell Grant and Federal Work-Study are prorated based on enrollment.

What This Means
Some students who previously qualified for a Pell Grant may no longer qualify under the updated federal guidelines.

Graduate Student Loan and Borrowing Changes

These are nationwide federal changes that apply to all colleges and universities. Additional details will be released by the U.S. Department of Education, and KSU will update this page as more information becomes available. 

Loan Limits for Part-Time Students

Beginning July 1, 2026, federal Direct Loan amounts will be based on the percentage of credits a student takes each term. This means:

  • Students enrolled full-time will be eligible for the full loan amount.
    • Graduate students are considered full-time at 9 credit hours.
  • Students enrolled less than full-time will receive a reduced loan amount based on enrolled credit hours.

Dropping or withdrawing from a course may reduce federal loan eligibility. Students should check with an academic advisor before making changes to their course schedule.

Graduate PLUS Loan Availability

Beginning July 1, 2026, the Graduate PLUS Loan will be eliminated for new borrowers.

  • Graduate students who begin a new graduate program on or after July 1, 2026, will not have Graduate PLUS Loans available, even if they borrowed Graduate PLUS Loans in the past.

What This Means
Graduate students starting a new program in Fall 2026 or later should plan for other funding options, such as federal direct unsubsidized loans, scholarships, or private loans. 

Interim Exception (Legacy Provision) for Graduate Students
There is a legacy provision for current graduate students. 

Graduate students who are already enrolled in a graduate program and borrowed a Federal Direct Unsubsidized Loan before July 1, 2026, may be able to continue borrowing under the current rules until one of the following occurs:

  • Three (3) additional academic years;  or
    • For example, the 2026-2027 academic year consists of Fall 2026, Spring 2027, and Summer 2027. 
  • The student completes their current credential/degree; or
  • The student completes their remaining eligiblity, which is determined by taking the total length of their program and subtracting the time they've already been enrolled.

Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.

Federal Direct Unsubsidized Loan Limits for Graduate Students

Current limits (through June 30, 2026):

  • Annual limit: Up to $20,500 per academic year.
  • Aggregate (lifetime) limit: Up to $138,500, including federal loans borrowed for undergraduate study.

New limits (effective July 1, 2026):

  • Annual limit: Up to $20,500 per academic year.
  • Aggregate (lifetime) limit: Up to $100,000 (applies only to graduate-level borrowing; undergraduate loans are not included).

Interim Exception (Legacy Provision) for Graduate Students
There is a legacy provision for current graduate students. 

Graduate students who are already enrolled in a graduate program and borrowed a Federal Direct Unsubsidized Loan before July 1, 2026, may be able to continue borrowing under the current rules until one of the following occurs:

  • Three (3) additional academic years;  or
    • For example, the 2026-2027 academic year consists of Fall 2026, Spring 2027, and Summer 2027. 
  • The student completes their current credential/degree; or
  • The student completes their remaining eligiblity, which is determined by taking the total length of their program and subtracting the time they've already been enrolled.

Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.

 What this Means
Graduate students who begin a new graduate program on or after July 1, 2026, will be subject to the new loan limits listed above.

 

Frequently Asked Questions

  • Yes, some enrolled students may be affected depending on enrollment level, borrowing history, and when future federal loans are disbursed.  
    Students enrolled part-time, changing programs, or receiving new loans after July 1, 2026, may see reduced federal loan eligibility or lower borrowing limits.  

    Students should review enrollment plans with an advisor carefully before dropping courses or changing schedules.  

  • Starting a new program on or after July 1, 2026, may result in being subject to the new federal rules, even if loans were borrowed under previous rules.
  • Yes. The FAFSA must be completed annually to be considered for federal, state, and KSU financial aid.
  • Contact the Kennesaw State University Office of Scholarships and Financial Aid at 470-KSU-INFO (470-578-4636) or finaid@kennesaw.edu for help understanding how these changes may affect you.