Important 2026–2027 Financial Aid Changes

These updates may impact how much students can borrow, especially those attending less than full-time enrollment.

What is changing?

Beginning with the 2026–2027 academic year, federal regulations require schools to prorate (reduce) annual Federal Direct Stafford Loan eligibility for certain undergraduate students based on enrollment.

This means students enrolled less than full-time may qualify for a lower annual loan amount than the standard federal maximum.

Who may be impacted?

This change may affect:

• Undergraduate students
• Students enrolled half-time or three-quarter time
• Students who are not enrolled in enough coursework to qualify for the full annual loan limit
• Students in programs with shorter remaining periods of study
• Students approaching program completion

TESU Note: Because many TESU students attend half-time while balancing work and family obligations, this change may impact a significant number of borrowers.

Standard Federal Annual Loan Limits (Before Proration)

Dependent Undergraduate Students:

• First Year: up to $5,500
• Second Year: up to $6,500
• Third Year and Beyond: up to $7,500

Independent Undergraduate Students (or dependent students whose parents are denied PLUS):

• First Year: up to $9,500
• Second Year: up to $10,500
• Third Year and Beyond: up to $12,500

Why is this happening?

Federal regulations require institutions to ensure borrowing aligns with:

• Actual enrollment intensity
• Remaining coursework required
• Cost of attendance
• Length of the loan period

The goal is to prevent overborrowing relative to a student's academic enrollment.

How Loan Proration Works

Your Federal Direct Stafford Loan may be reduced based on:

• Number of enrolled credits
• Whether you attend:
  • Full-time
  • Three-quarter time
  • Half-time
• Remaining coursework in your degree program
• Length of enrollment period

Minimum Enrollment Requirements for Federal Loans

To receive Federal Direct Loans, students must generally be enrolled at least half-time.

TESU undergraduate half-time enrollment:

• 6 credits per term

If enrollment drops below half-time:

• Federal Direct Loans may be canceled or reduced
• Future disbursements may be adjusted
• Grace period or repayment may begin

Enrollment Changes Can Affect Your Aid

Changes after aid is awarded may result in adjustments.

Examples:

• Dropping a course
• Withdrawing from classes
• Changing from full-time to half-time
• Shortening your academic schedule
• Completing degree requirements earlier than expected

Possible impacts:

• Reduced loan eligibility
• Loan recalculation
• Return of federal funds
• Balance owed to TESU

Maximum Pell Grant Award

For the 2026–2027 award year:

• Maximum Federal Pell Grant: $7,395
• Minimum Pell Grant remains federally determined based on eligibility calculations
• Students may still qualify for up to 150% of their scheduled Pell award if attending year-round (summer eligibility)

Pell Eligibility Reminders

Students must:

• Complete the FAFSA annually
• Meet federal citizenship/eligible noncitizen requirements
• Maintain satisfactory academic progress (SAP)
• Not have exceeded lifetime Pell eligibility (600%)

Direct Unsubsidized Loan Limits

Graduate students remain eligible for:

• $20,500 annually

However:

• New aggregate borrowing cap: $100,000

This may impact returning students with high existing federal graduate debt.

Major Change Effective July 1, 2026

Graduate PLUS Loans are being eliminated for many new borrowers.

This means graduate students may no longer be able to borrow up to full Cost of Attendance through Graduate PLUS.

Student Impact:

Students may need to:

• Budget differently
• Consider employer tuition benefits
• Explore payment plans
• Review private loan options carefully

New Federal Borrowing Caps

Beginning in 2026–2027:

Parent PLUS Loans will be limited to:

• $20,000 annually per student
• $65,000 aggregate lifetime maximum

Previously, parents could borrow up to Cost of Attendance minus other aid.