Key Changes to Federal Student Loans Expected in July 2026

Enacted in July 2025, the One Big Beautiful Bill Act (H.R.1) made significant changes in federal student loan programs. Georgetown University is closely monitoring federal legislation regarding financial aid, specifically the new caps imposed on federal graduate student loans and the elimination of the Federal Direct Graduate PLUS Loan program. We recognize the uncertainty these changes cause for many in our graduate community.

There are no changes to federal student loans for the 2025–2026 academic year. The legislative changes affecting federal student loan types and their annual and aggregate limits will apply to borrowers whose program has a first disbursement on or after July 1, 2026, effective that same date. 

There is a legacy provision for students continuing in their graduate or professional program who have received a federal loan disbursement for the current program prior to July 1, 2026. While continuously enrolled in the same program, the student can borrow from the Grad PLUS program for three academic years or the remainder of their program, whichever is less. All federal graduate/professional loans will be subject to proration if the borrower is attending less-than-fulltime. 

Georgetown is committed to supporting our students through this evolving landscape. We are currently exploring a range of options, including potentially identifying private lenders who have indicated a willingness and ability to provide competitive educational loan options to Georgetown students, to ensure our students continue to have access to the resources necessary to fund their education. We expect to share an update on these alternative aid pathways in January 2026.

If you have questions about financial aid or would like to speak with a member of Georgetown’s Graduate Financial Aid Team, you may find contact information here. Students should refer to federal governmental sources for official guidance. See studentaid.gov for more information.