Graduate Aid

On July 4, President Trump signed the One Big Beautiful Bill Act which contains many changes to federal financial aid programs beginning July 2026. We continue to monitor any updates and will provide additional information to our students and families as it becomes available. Some of the changes in the bill include:

• Grad PLUS Loans: While completing their current degree, students can continue to borrow Grad PLUS Loans, provided they borrowed prior to July 1, 2026. The Grad PLUS program is discontinued for new borrowers beginning in 2026-2027.

• New Graduate Loan limits: Graduate students who have borrowed prior to July 1, 2026 may continue to borrow Unsubsidized loans at their current limits. For new borrowers starting after July 1, 2026, there will be an annual limit of $20,500 for graduate students and $50,000 for professional students. The lifetime borrowing limit is capped at $100,000 for graduate students and $200,000 for some professional students (classifications TBD).

• New Parent PLUS Loan Limits: $20,000 per year, per dependent student and a $65,000 aggregate limit per student. Current Parent PLUS Loan borrowers who have borrowed prior to July 1, 2026 may continue at their current limits until their student has completed their degree or June 30, 2029, whichever comes first.

• Undergraduate Subsidized/Unsubsidized Loan: The borrowing limits for undergraduate students remain unchanged.

• Continuous Enrollment Toward Degree: For continuing borrowers to maintain eligibility for the loan programs under pre-July 1, 2026 rules, they must be continuously enrolled in the same academic program at UChicago. Eligibility to use the prior rules lasts for three years or until the current academic program is completed, whichever is less.

• Loan Reduction for Less Than Full Time: For students enrolled less than full-time during the academic year, loan amount eligibility will be reduced in proportion to the level of enrollment.

• Repayment Plans: Borrowers with new loans made on or after July 1, 2026 are eligible for two repayment plans: a new standard repayment plan with fixed monthly payments and terms from 10 to 25 years based on the amount borrowed or a new income-based repayment assistance plan, known as RAP, with a 30 year repayment plan These two options apply to any direct loan borrower beginning in 2026-2027; both new students and current students completing their program. Students with no new loans after July 1, 2026 may continue to enroll in current repayment plan options.

Based on current information from the U.S. Department of Education, federal loan programs and borrowing rules remain unchanged for the 2025-2026 academic year.

The University Financial Aid Office continues to review the bill’s contents and will provide additional guidance as we learn more from the Department of Education.