Financial Aid

Important Changes to Federal Graduate Student Loans for Current Students — What You Need to Know

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 you complete 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.

  1. 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.

  1. 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.

  1. 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 the SCU Financial Aid Office 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.

Contact Information

If you’re a prospective or current SCU graduate or professional student and have questions about how the One Big Beautiful Bill Act affects your financial aid options, please contact:

SCU Financial Aid Office
Phone: 562-947-8755 Ext. 766
Email: financialaid@scuhs.edu
Office Hours: 8:00 AM – 5:00 PM PT

We are committed to helping you navigate these changes and plan a financing strategy that keeps your education as achievable and manageable as possible.