Federal Policy Changes

New Graduate Students

Key Changes You Should Know

1. Graduate PLUS Loans (Grad PLUS) will no longer be available
   Historically, graduate and professional students could borrow through the federal Grad PLUS program up to the full cost of attendance. Under the new law, this option is eliminated.

What this means for you:

• You may need to look at other alternative funding sources if your program cost exceeds what you can borrow via federal loans.
• If you were planning to rely on Grad PLUS, you should speak with the SCU Financial Aid Office now to review your plan. SCU provides students with access to Private loans, which may be available to help bridge funding gaps, but carry different terms, generally higher or variable rates, and fewer borrower protections than federal loans. Students should carefully compare all options before borrowing.

2. Annual and lifetime borrowing limits for federal loans are lower and more defined
   The law introduces new annual and lifetime caps on federal borrowing for graduate/professional students. While exact amounts may vary depending on program type, current guidance includes:

• For many graduate programs: a cap of $10,250 per term (3 terms per academic year) or $30,750 per year and a lifetime cap of $100,000.
• For professional degrees: a higher cap of $25,000 per term (3 terms per academic year) or $75,000 per year and a lifetime cap of $200,000.

What this means for you:

• Carefully estimate the total cost of your degree (tuition, fees, living expenses, books, equipment, etc.).
• If you expect to borrow more than the new caps allow, you’ll need to plan for alternative sources of funding (scholarships, employer support, savings, private loans).  SCU is here to help you.
• You should talk with your Financial Aid Advisor early to ensure your budget aligns with the new borrowing limits.

3. Repayment and borrower protections have changed for future loans
   For loans first disbursed on or after July 1, 2026, the repayment landscape changes: fewer income‐driven repayment options, fewer deferment/forbearance protections, and longer paths to forgiveness in many cases.

What this means for you:

• Borrowing decisions need to consider both how much you borrow andhow you will repay.
• It is more important than ever to keep total borrowing as lean as possible and to explore all funding sources.
• The Financial Aid Office can help you model repayment scenarios so you understand what your monthly payment could be based on your future income.

SCU is here to support you

• Our Financial Aid Office has updated all costs and financing models in light of these federal changes.
• We strongly encourage you to meet with a financial aid advisor beforeyou commit to borrowing or enrolling, to ensure your funding plan remains solid.
• If you have employer sponsorship, tuition assistance, scholarships, or other non‐loan funding, we’ll help you integrate that into your budget.
• We encourage you to revisit costs and funding each year of your program, especially if you have a multi‐year doctoral or master’s program.

What You Should Do Now

• Schedule a one‐on‐one meeting with the SCU Financial Aid Office as soon as possible.  Please contact the financial aid office at financialaid@scuhs.edu
• Update your cost estimate for your program: tuition, fees, books/supplies, living costs, and any differential expenses (travel, equipment, licensing).
• List all funding sources you expect: employer tuition support, scholarships/grants, savings, and federal loans.
• Estimate your total borrowing need and compare it to the new federal lifetime caps.
• Consider alternative funding early, such as institutional scholarships, student worker assistantships, employer reimbursement, or private loans.
• Plan for repayment: ask what your projected monthly payment might be based on your expected income after graduation and your expected loan debt.

Current Graduate Students

Effective for loans disbursed on or after July 1, 2026

As a current SCU graduate or professional student, we want to ensure you understand how the One Big Beautiful Bill Act (OBBBA) may affect your future borrowing. These changes apply to loans first disbursed on or after July 1, 2026, but current students receive a three-academic-year grandfather period that preserves many of today’s borrowing rules while continuously enrolled in your program. The information below reflects the latest guidance available and may change as federal instructions are updated.

Key Changes You Should Know

1. You Have a Three-Academic-Year Grandfather Period

Current students are protected for three academic years beginning July 1, 2026. During this time, you may continue borrowing under the current federal loan rules, including access to Grad PLUS loans and existing annual limits. After the grandfather period ends, all borrowing must follow the new OBBBA rules.

2. Graduate PLUS Loans Will Be Eliminated After the Grandfather Period

Grad PLUS loans remain available to you only during the grandfather window. After it ends, Grad PLUS loans will no longer be offered under federal law.

3. New Annual and Lifetime Borrowing Caps Will Begin After the Grandfather Period

Once the transition period expires, new federal caps apply:

• Graduate programs:
  • Annual: a cap of $10,250 per term (3 terms per academic year) or $30,750 per year
  • Lifetime: $100,000
• Professional programs (SCU’s Doctor of Chiropractic):
  • Annual: a higher cap of $25,000 per term (3 terms per academic year) or $75,000 per year
  • Lifetime: $200,000

You should evaluate whether your remaining program length may require planning for additional funding sources.

4. Repayment Rules Will Change for Future Loans

Loans disbursed after your grandfather period may have:

• Fewer income-driven repayment options
• More limited deferment/forbearance protections
• Longer timelines to loan forgiveness

Your existing loans will keep their current terms.

What You Should Do Now

• Meet with a SCU Financial Aid Counselor to map out your funding across the grandfather period and beyond.
• Review your remaining cost of attendance and estimate how far your current borrowing rules will carry you.
• Assess your total borrowing need against the upcoming limits.
• Explore alternative funding options early, including scholarships, employer assistance, payment plans, or private loans.
• Plan for repayment by reviewing projected loan totals and estimated monthly payments.