Complete the FAFSA and review grants, scholarships, savings, school aid, and eligible federal loans before using private credit.
Limits described in current federal guidance
Federal Student Aid’s May 2026 FAQ describes a $20,500 annual Direct Unsubsidized limit and $100,000 aggregate limit for affected graduate students, a $50,000 annual and $200,000 aggregate federal limit for affected professional students, and Parent PLUS limits of $20,000 annually per dependent student and $65,000 in aggregate.
Graduate PLUS was eliminated for new graduate and professional borrowers subject to the new rules. Undergraduate Direct Loan limits did not change. Certain health-profession programs can be treated differently.
Why transition status matters
The federal FAQ describes an interim-exception path tied to enrollment in the program by June 30, 2026 and receipt of a Direct Loan for that program before July 1, 2026. The expected time to credential and other federal conditions matter.
What to ask the financial-aid office
- Which annual and aggregate limit applies to this student?
- Does the student qualify for an interim exception?
- How much federal eligibility remains after prior borrowing?
- What is the school-certified annual and program-level gap?
- Are institutional grants, payment plans, or emergency funds available?
Model the entire program
A one-year gap can repeat. Project tuition, fees, living costs, aid renewal, federal eligibility, and private borrowing through the expected completion date. Include the possibility of an extra term.
Verify before using private credit
Federal guidance and school implementation can change. Use the current Federal Student Aid source and written information from the financial-aid office before making a private-loan decision.
Primary sources
Sources were checked during the September 11, 2026 review. Provider terms and federal rules can change.
Next decision
Use a calculator to test the amount and full cost, then compare public lender features. Final eligibility, rate, and loan terms come only from the authorized provider.