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Federal Aid Updates

We understand that navigating your financial aid options can feel overwhelming. Recent legislation has changed student aid options and how higher education is funded, regulated, and distributed.

This site offers a resource for our current understanding of the new legislation. Final language for regulatory compliance for the Higher Education Act has not yet been written on these changes as they will be effective July 1, 2026; therefore, some site links to the Federal Aid information may not yet be updated.

 

Undergraduate-specific Updates
Effective Date What Specifics What this means What is not yet known
July 1, 2026 Parent PLUS Loans
  • Will have an annual limit (cap) of $20,000 per student
  • Will have an aggregate (lifetime) limit of $65,000 per student
  • without regard to amount paid, forgiven, canceled, or discharged.
 Your parent will only be allowed to borrow up to $20,000 per year until they reach the maximum of $65,000 for your lifetime across all undergraduate education credits This legislation has yet to define if previous Parent PLUS Loan totals are included in this maximum of $65,000.

Other Information Specific to Undergraduates:

  1. Undergraduate Federal loan limits maintain the current limits for annual and aggregate borrowing.
  2. There were no applicable changes to the Federal Pell Grant program.
Graduate-specific Updates
Effective Date What Specifics What this means What is not yet known
July 1, 2026 Graduate PLUS Loans
  • Current borrowers have legacy provisions to complete their plan of study.
 If you currently have taken a Graduate PLUS loan for your current program of study at UT Health Science Center or you obtain a Graduate PLUS loan prior to July 1, 2026, you will be eligible to continue in this loan program to the completion of your program of study at UT Health Science Center. This legislation has yet to define if transferring between institutions allows for the legacy provisions.
July 1, 2026 Graduate PLUS Loans
  • New borrowers who are not part of the legacy provision will be subject to the annual graduate loan limits.
  • Annual loan limits listed are:
    • $20,500 for graduate students
    • $50,000 for professional students
 This means that effective July 1, 2026 a new Federal loan borrower will be subject to the new legislation.  
July 1, 2026 Graduate PLUS Loans
  • New borrowers who are not part of the legacy provision will be subject to the aggregate graduate loan limits.
  • Aggregate loan limits listed are:
    • $100,000 for graduate students
    • $200,000 for professional students
 This means that effective July 1, 2026, a new Federal loan borrower will be subject to the new legislation.  
Loan Limitations for All Borrowers
Effective Date What Specifics What this means What is not yet known
July 1, 2026 Annual, Aggregate, and Lifetime Loan Limits Current borrowers with legacy provisions may continue to borrow under current limits for the remainder of their expected program of study This means that students that are currently borrowing a Federal loan (Graduate PLUS, subsidized, and/or unsubsidized) will remain under the same loan limits until completion of program of study at UT Health Science Center. This legislation has yet to define if transferring between institutions allows for the legacy provisions.
July 1, 2026 Borrowing limit  The legislation contains a borrowing limit on all Federal student loans of $257,500 without regard to amount paid, forgiven, canceled, or discharged, excluding the borrowed Parent PLUS loan amounts.

This means that students will not be allowed to borrow more than the $257,000 maximum amount over their entire lifetime.

For currently enrolled students, legacy provisions provide for three years minus the total current years toward completion of the minimum published program of study weeks/years.

  • For example, your published program length in your current catalog year is 4 years. You have completed 2 years. Your resulting remaining legacy provision will allow an additional 2 years to complete your program of study under the current loan limits. If you exceed the 2 years, you would be subject to the new loan limits under the new legislation.
  
July 1, 2026 Loan proration The legislation requires loan proration for less-than-full-time enrollment

This means if you are enrolled as less-than-full-time, your loans will be prorated on the actual enrolled credit hours. Less than full time means:

  • Undergraduate student with less than 12 credit hours
  • Graduate or Professional student with less than 9 credit hours
  
Repayment Updates
Effective Date What Specifics What this means
July 1, 2026 Borrowers with new loans made on or after July 1, 2026

Two available repayment plans

  1. A new standard repayment plan with fixed monthly payments and fixed terms ranging from 10 to 25 years based on the amount borrowed.
  2. A new income-based repayment assistance plan (RAP).

Borrowers with new loans made on or after July 1, 2026, can only use one of these two repayment plans.

This includes currently enrolled students taking additional loans to complete their program of study.
July 1, 2026 Borrowers with no new loans made on or after July 1, 2026

Continue to be eligible to enroll in:

  • Current Standard
  • Current Income Based (IBR)
  • Graduated Repayment Plan
  • Extended Repayment Plan

May also opt in to the new income-based repayment assistance plan (RAP).

Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, the borrower will be moved into RAP. This includes currently enrolled students who are not taking additional loans to complete their program of study.

  

Other Repayment Updates

  • The legislation requires a $10 minimum monthly payment under RAP.
  • A borrower’s RAP monthly payment will be based on their Adjusted Gross Income and number of dependents.
  • Income and dependents are calculated separately for married borrowers who file taxes separately from their spouses.
  • The legislation removes the requirement for borrowers to demonstrate a partial financial hardship in order to enroll in income-based repayment plans.

Loan Forgiveness / Deferment / Forbearance Updates

  • Public Service Loan Forgiveness continues to allow for time spent in a medical or dental internship or residency program. https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
  • For a borrower who receives a loan on or after July 1, 2027, those loans are not eligible for economic hardship and unemployment deferments. This means that loans received after July 1, 2027, cannot be deferred based on an economic hardship or proof of unemployment.
  • Loans made on or after July 1, 2027, may only be eligible for a forbearance on those loans not to exceed 9 months in a 24-month period. This means that any loan received after July 1, 2027, will be subject to the limited forbearance period of 9 months over a 24-month period.

Undergraduate Programs

  • Audiology and Speech Pathology (BSASP)
  • Dental Hygiene (BSDH)
  • Nursing (BSN)
  • Medical Laboratory Science (BSMLS)

Graduate (Master’s and Doctoral)

  • Audiology (AuD)
  • Biomedical Engineering (MS and PhD)
  • Biomedical Sciences (MS and PhD)
  • Clinical Laboratory Science (MSCLS)
  • Cytopathology (MCP)
  • Dental Science (MDS)
  • Epidemiology (MS)
  • Health Informatics and Information Management (MHIIM)
  • Health Outcomes and Policy Research (MS and PhD)
  • Nursing Practice (DNP)
  • Nursing Science (PhD)
  • Occupational Therapy (MOT and OTD)
  • Pathologists’ Assistant (MHS)
  • Pharmaceutical Sciences (PhD)
  • Pharmacology (MS)
  • Physical Therapy (DPT)
  • Physician Assistant (MMS-PA)
  • Speech and Hearing Science (PhD)
  • Speech Language Pathology (MSSLP)

Professional (DDS, MD, PharmD)

  • Dentistry (DDS)
  • Medicine (MD)
  • Pharmacy (PharmD)

Note: The classification of certain graduate programs as “health professional programs” (e.g., MD, DDS, PharmD) is based on definitions established by the U.S. Department of Education for the purposes of federal financial aid and student loan policies. This distinction is not determined by our institution and does not reflect the value or importance of other graduate programs such as DNP, DPT, or others in the health professions. We recognize and deeply value the contributions of all health-related disciplines.

We know that change can be confusing, but we are here to assist you in navigating the new legislation and impacts to your financial aid options. If you would like to discuss the impact on your financial aid, please schedule a meeting with your Financial Aid Counselor.

Steps to Take Regarding Repayment

  1. Review Your Loan Information: Visit your loan servicer's website or studentaid.gov and make sure your contact information is up to date. This will ensure you receive all important notices about repayment deadlines and your loan status. Print your loan information or take a screenshot to ensure your status and information is accurate as of that day.

  2. Explore Repayment Plans: Take time to understand the plans and which one may work best for your financial situation. Options that do exist and have not changed are still available.  Please view https://studentaid.gov/manage-loans/repayment/plans for a full listing. We recommend using online calculators to estimate your new monthly payments.

  3. Stay Informed About Forgiveness Programs: If you are employed in public service or teaching, make sure you're enrolled in the PSLF program, and check if any recent changes could help you qualify for forgiveness sooner.
    For updates click here.

 

Disclaimer: This information is based on current federal law, legislative rules, and administrative structures as of July 4, 2025. Future legislative actions by Congress, changes to Senate rules, and executive actions by an administration could change the landscape.

Nov 13, 2025