Federal financial aid for graduate students changes on July 1, 2026. Grad PLUS loans will no longer be available for newly enrolled students and new borrowing limits apply, meaning many prospective students may need to find alternative funding options. This change will affect people seeking federal financial aid for the online Master of Science in Marriage and Family Therapy Program at Northwestern University; primarily, those who enroll on or after July 1, 2026.

Last updated: May 2026

Starting July 1, 2026, federal financial aid for graduate students will change under the One Big Beautiful Bill Act (OBBBA), enacted in 2025.

For many students, federal loans will no longer cover the full cost of attendance. Prospective students should begin financial planning as early as possible, ideally before applying, to find alternative funding options.

Currently enrolled students: Students with federal loans, including Grad PLUS, disbursed before July 1, 2026 will have a transition period if they stay continuously enrolled. Certain elements of the new rules will not be immediately applicable to these loans. See FAQs below for more information.

Part-time students: Federal loan limits will be prorated based on enrollment intensity. If you plan to enroll less than full-time, you may be eligible for less aid.

*Previously, with Grad PLUS loans, federal support was often available to cover the full cost of attendance for students, less other financial aid received. Now, the only federal financial loan support available is the $20,500 annual loan for new borrowers (subject to change based on enrollment status).

Effective July 1, 2026:

Students should consult the financial aid office and review official guidance for the most current information.

Federal aid now may not cover your full cost of attendance. Learn about how to apply for federal financial aid and build a funding plan to bridge the gap. The earlier you start, the more options are available. 

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• Will federal loans still be available to graduate students after July 1, 2026?

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  Yes. Federal Direct Unsubsidized Loans will remain available to eligible graduate students. However, Grad PLUS Loans will be eliminated for new borrowers, and annual and total borrowing limits will apply. Federal loans may not cover the full cost of attendance for all programs. You can learn more about the types of loans from the Department of Education here.

• What is the most significant change to graduate financial aid in 2026?

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  The two most significant changes are the elimination of Grad PLUS Loans and the introduction of federal borrowing caps. Graduate students who previously could borrow up to the full cost of attendance through Grad PLUS will now be limited to $20,500 per year and $100,000 total in federal loans for graduate study (with the exception of “professional” programs — see FAQ below). Students with costs above these thresholds will need to secure funding from other sources.

• I’ve been admitted but haven’t started yet. Am I affected?

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  This depends on when your enrollment begins and when federal loans are first disbursed. Students who begin enrollment on or after July 1, 2026 will be most impacted by the new federal loan provisions. Contact the financial aid office for guidance specific to your situation.

• I’m currently enrolled. Does this affect me?

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  Currently enrolled students with Grad PLUS loans disbursed before July 1, 2026 may continue borrowing through program completion with the following conditions:

  • You must remain continuously enrolled in the same program at the same institution
  • You must complete your program within 3 academic years (by June 30, 2029)
  • But, you are subject to loan proration if enrolled less than full time.

  Taking a leave of absence, withdrawing, transferring, or changing programs on or after July 1, 2026 will likely result in loss of eligibility under prior borrowing rules. Contact the financial aid office before making any enrollment changes. On a leave of absence? You may need to re-start your studies by June 30, 2026 to maintain legacy aid eligibility and avoid new borrowing limits.

• Are repayment plans changing?

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  Yes, depending on when you borrow and what plan you’re currently on.

  Beginning in 2026, all new borrowers will choose between a single fixed “tiered standard” plan and a new Repayment Assistance Plan (RAP). RAP replaces multiple income-driven repayment (IDR) options with one structure that ties payments to total adjusted gross income rather than discretionary income. Borrowers on older income-driven repayment plans (including REPAYE) must transition to certain legacy income-based repayment or other existing plans or to RAP by 2028.

  If you take out new federal loans after June 30, 2026, all new borrowers will choose between a single fixed “tiered standard” plan and a new Repayment Assistance Plan (RAP). RAP replaces multiple income-driven repayment (IDR) options with one structure that ties payments to total adjusted gross income rather than discretionary income.

  For loans disbursed prior to July 1 2026, the Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and SAVE plans will remain temporarily available (SAVE plan borrowers have already been instructed by the Department of Education to exit the plan and find a new plan). Borrowers on those plans must choose to move to Income-Based Repayment (another income-driven plan), RAP, or a fixed payment plan by 2028.

  Borrowers in legacy plans who do not choose a repayment plan will be automatically enrolled in RAP. Meanwhile, borrowers enrolled in the Income-Based Repayment plans or one of the current fixed repayment plans can remain on those plans after 2028.

  You should consult your lender and loan servicer for further information about your specific plan as the final rules for these changes are still being promulgated.

• How does less than full-time enrollment affect federal financial aid for graduate students under the new rules?

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  Direct Unsubsidized loans will be prorated based on enrollment intensity for the 2026-2027 academic year and beyond. Students enrolled less than full-time may receive lower loan amounts than full-time students. Before reducing your course load, taking a leave of absence, or withdrawing, consult the financial aid office to understand the potential impact on your aid eligibility.

• What’s the difference between a “graduate” and “professional” degree for federal loan purposes?

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  The federal government classifies graduate programs into two categories for loan limit purposes:

  • Graduate programs include most master’s degrees and many doctoral programs
  • Professional programs include a defined set of doctoral-level degrees that prepare students for immediate and licensed professional practice

  These federal classifications do not reflect the institution’s academic classification of programs or the professional standing of any field, and this information is subject to change based on final rulemaking.

• Which degrees are classified as professional programs under federal rules?

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  While still subject to final rulemaking by the U.S. Department of Education, professional degrees are anticipated to include:

  Pharmacy (Pharm.D.) · Dentistry (DDS or DMD) · Veterinary Medicine (DVM) · Chiropractic (DC or DCM) · Law (LLB or JD) · Medicine (MD) · Optometry (OD) · Osteopathic Medicine (DO) · Podiatry (DPM, DP, or PodD) · Clinical Psychology (PsyD or PhD) · Theology (MDiv or MHL)

Prospective and current students should review official guidance from the U.S. Department of Education and consult the school’s financial aid office for advice specific to their circumstances.