Overview
If you are currently enrolled in an undergraduate degree program and borrowed federal student loans prior to July 1, 2026, you may qualify as a continuing or legacy borrower under federal legacy provisions.
Key Changes
- Undergraduate Direct Loan limits remain largely unchanged.
- Parent PLUS borrowing options for families will become more limited beginning in 2026–2027.
- Students enrolled less than full time will see reduced annual loan eligibility due to federal loan proration rules.
Continuing Borrower Protection
Students already enrolled may qualify for a temporary protection period.
The 3-Year Legacy Rule: If you or your parents borrowed a federal student loan (Direct or PLUS) for a term that began before July 1, 2026, you are considered a "UG legacy borrower." You can continue to borrow under the old, higher limits (including Parent PLUS) for the remainder of your current program of study, or for three academic years, whichever is shorter.
To keep this legacy status, you must stay continuously enrolled in the same program of study. If you switch schools, change program types, or take a leave of absence, you will lose your legacy status and switch into the new OBBBA limits.
