Title IV Resource Hub

The One Big Beautiful Bill eliminates Graduate PLUS loans effective July 1, 2026 and imposes strict new borrowing limits:

• Graduate students in “non-professional programs” will be limited to $20,500 annually and $100,000 lifetime for federal Direct Unsubsidized Loans (The Direct Stafford Loan Program).
• Students in “professional programs” can borrow $50,000 annually with a $200,000 lifetime limit.

Additionally, a universal borrowing cap of $257,500 applies to all federal student loans across undergraduate, graduate, and professional education combined. Lifetime maximums for graduate students will be the total of what you borrowed as an undergraduate student plus the lifetime maximum for your graduate level. If you borrow less than $57,500 as an undergraduate, the maximum will be the amount borrowed plus the new maximums as a graduate student.

All federal student loan changes take effect on July 1, 2026, meaning the 2025–26 academic year is unaffected. If you’re currently enrolled at Alliant or plan to start before July 1, 2026, you can still access existing federal aid programs, including Graduate PLUS loans, under current rules. Note – you must be enrolled and receive a loan before July 1, 2026 to remain eligible for Grad PLUS loans.

Additionally, current, active, and new Alliant students whose loans are disbursed by June 30, 2026, will be classified as “legacy” Title IV students and will keep access to Graduate PLUS loans and existing caps in Direct Stafford Loans through June 2029 or the expected degree program completion date based on the enrollment agreement (whichever is shorter).

According to U.S. Department of Education regulation 34 CFR § 668.2, a professional degree is “a degree that signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree.” Professional licensure is also generally required for practice in these fields.

The Clinical Psychology PsyD and PhD programs fall under the definition of a Professional Program.

Graduate PLUS loans currently allow borrowing up to the full cost of attendance minus other aid received. Most Alliant students who take out Graduate PLUS loans are in programs requiring significant practicum and internship hours (Clinical Psychology PhD/PsyD and Marital and Family Therapy MA/PhD), making working full-time while attending school difficult. Without this option, new students entering their program after July 1, 2026 will need to explore private loans, other available institutional aid, or alternative funding sources to bridge this gap.

The funding gap created by eliminating Graduate PLUS loans and reducing borrowing limits will likely require students in Clinical Psychology and MFT programs to seek private loans, which typically have higher interest rates and less favorable terms than federal loans. Students may also need to work while attending school, extend their program timeline, or explore more costly private financing options.

If possible, consider starting your Alliant program before July 1, 2026 to maintain access to current federal aid programs, including Graduate PLUS loans. For those starting or planning to start after July 1, 2026, begin exploring alternative funding sources immediately, including private loans, available institutional aid, and external scholarships. Early application for alternative funding is crucial, as these opportunities are often limited and competitive.

If a student changes their program of study after July 1, 2026, they will no longer be eligible under the legacy rule.

If a student who was eligible for the legacy rule for loans graduates the legacy standing is no longer eligible. If the student starts a new program after July 1, 2026, even at Alliant the financial aid rules will fall under the new guidelines.

Any factors that may extend your enrollment longer than the expected time to completion per the enrollment agreement or approved time to completion approved by the Department of Education:

• Zero unit courses
• Approved Academic Absence
• Part-time enrollment
• Failure to obtain an approved internship or practicum
• Dissertation Extension

Yes, part-time students will have their federal loan eligibility prorated based on their enrollment status. This means part-time graduate students can borrow even less than the already-reduced annual limits, making it particularly challenging to fund extended part-time programs that many working professionals prefer.

Full-time enrollment is defined as:

• Undergraduate students: 12 units per trimester
• Graduate students: 8 units per semester/trimester OR 4 units per session

The Department of Education is building a table that will be used to consider the prorated amount of aid based on unit enrollment. This information will be published when available.

Private graduate student loans currently offer variable rates starting around 3.62% APR* and fixed rates from 2.89% APR* for creditworthy borrowers. However, these require credit checks and often benefit from having a cosigner. Unlike federal loans, private loans typically don’t offer income-driven repayment, loan forgiveness programs, or generous deferment options. Interest rates and terms vary significantly by lender, making comparison shopping essential.

*Interest rates change as the market rates change

RAP replaces existing income-driven repayment plans starting July 1, 2026. Unlike current plans that exclude a portion of income for basic needs, RAP calculates payments based on your full Adjusted Gross Income (AGI): 1–10% depending on income level, with a minimum $10 monthly payment. The plan offers 30-year forgiveness but eliminates the $0 payment option that exists under current plans. RAP also caps interest accumulation and ensures that at least $50 of your payment goes toward principal reduction each month.

Student Finance: (858) 635-4700 | SF@alliant.edu; Financial Aid Office: (858) 635-4700