Undergraduate Students

Most federal Direct Subsidized and Direct Unsubsidized Loan limits for undergraduate students remain unchanged.

Students may continue to borrow federal Direct Loans based on their dependency status and grade level.

Graduate Students

Beginning July 1, 2026:

• Graduate PLUS Loans will no longer be available to new borrowers. Graduate students may continue to borrow Direct Unsubsidized Loans up to the annual federal limit of $20,500.
• Graduate students will be subject to a new lifetime federal Direct Loan limit of $100,000 (excluding Parent PLUS Loans borrowed by a parent).
• Students enrolled in eligible professional degree programs will have an annual loan limit of $50,000 and a lifetime aggregate limit of $200,000. John Brown University does not currently offer graduate programs classified as professional degree programs under federal guidelines.

Limited Exception/Legacy Provision

If you were enrolled at JBU in your current program as of June 30, 2026, and continue in that same program without a break in enrollment, you may be eligible to continue borrowing under the current Graduate PLUS Loan and Direct Loan limits rather than the new federal limits. To qualify, you must have received a Direct Loan for your current program before July 1, 2026. This transition period is available for up to three academic years or for the remainder of your program, whichever is shorter.

For additional details, see What Graduate Students Need to Know, 2026–27 & Beyond Graduate / Professional Student Loan Borrowing Limits and What Professional Students Need to Know.

Enrollment Status and Loan Eligibility

Your federal student loan eligibility is based on both your enrollment status and your Cost of Attendance (COA). Students who are enrolled less than full-time may be eligible for a lower federal loan amount because their Cost of Attendance is reduced. In some cases, federal annual loan limits may also be prorated based on federal regulations.

Example: If you're enrolled three-quarter time instead of full-time, your tuition and other educational expenses used to calculate your Cost of Attendance may be lower. As a result, the amount of federal student loans you're eligible to receive could be less than if you were enrolled full-time. 

Beginning July 1, 2026, new borrowing limits will apply to Parent PLUS Loans.

Annual Borrowing Limit

Parents may borrow up to:

$20,000 per year per dependent student

Lifetime Borrowing Limit

Parents may borrow up to:

$65,000 total per dependent student

Families who currently rely on Parent PLUS Loans to help cover educational expenses should review their financing plans for future academic years.

Limited Exception/Legacy Provision:

If your parent is borrowing a Parent PLUS Loan, they may be eligible to continue under the current federal loan limits rather than the new limits. To qualify, you must have been enrolled at JBU in your current program as of June 30, 2026, and remain continuously enrolled in that same program. In addition, either your parent must have received a Parent PLUS Loan for your program before July 1, 2026, or you must have received a Direct Subsidized or Unsubsidized Loan for that program before July 1, 2026. This transition period is available for up to three academic years or for the remainder of your program, whichever is shorter.

For additional details, see What New Parent Borrowers Need to Know and What Current Parent Borrowers Need to Know.

Repayment: New Parent PLUS Loans will be repaid under the new Tiered Standard Repayment Plan. Parent PLUS Loans are not eligible for the Repayment Assistance Plan.

• The existing Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE) repayment plans will no longer be available to new borrowers.
• A new income-driven repayment option, the Repayment Assistance Plan (RAP), will be introduced. Monthly payments under RAP will be based on several factors, including:
  • Payments starting as low as $10 per month.
  • Adjustments based on the number of dependents.
  • Remaining loan balances may be forgiven after 30 years of qualifying payments.
• A new standard repayment plan will also be established. Repayment terms will be fixed at 10, 15, 20, or 25 years, depending on the total amount borrowed.

Current Borrowers:

• If you do not receive any new loans on or after July 1, 2026, you may continue to choose from the current Standard, Graduated, Extended, or Income-Based Repayment (IBR) plans, or you may elect to enroll in the new Repayment Assistance Plan (RAP).
• If you are currently enrolled in the ICR, PAYE, or SAVE plan, you must switch to another eligible repayment plan by July 1, 2028. Your options include the current IBR plan, the current Standard repayment plan, or RAP. If you do not choose a new plan, you will automatically be enrolled in RAP.
• All federal student loans must be repaid under the same repayment plan. As a result, borrowers with loans made before July 1, 2026, who receive additional loans on or after that date, will only be eligible to choose between RAP and the new standard repayment plan.

New Borrowers:

• Borrowers who receive loans on or after July 1, 2026, will have two repayment plan options: the new standard repayment plan or the RAP. If no repayment plan is selected, the borrower will automatically be enrolled in the new standard repayment plan.

The One Big Beautiful Bill Act (OBBBA) includes additional changes related to federal student loan consolidation, deferment, and forbearance options. These updates are not expected to take effect until July 1, 2027. Student Financial Services will provide additional information as the U.S. Department of Education releases further guidance and implementation details.

• FAFSA Asset Exemptions: Beginning with the 2026–2027 FAFSA, the exemptions for family-owned small businesses, family farms, and family-owned commercial fishing businesses will be restored when calculating the Student Aid Index (SAI).
• Foreign Income and Pell Grant Eligibility: Beginning with the 2026–2027 FAFSA, foreign income must be included as part of the Adjusted Gross Income (AGI) used to determine eligibility for the Federal Pell Grant.
• Full Cost of Attendance Scholarships and Grants: Effective July 1, 2026, students who receive non-federal scholarships or grants that cover their full Cost of Attendance (COA) will no longer be eligible to receive a Federal Pell Grant, even if they otherwise meet Pell eligibility requirements.