Federal Financial Aid Updates
In 2025, the One Big Beautiful Bill Act, which included many changes to federal financial aid, was signed into law. The Department of Education is working to finalize provisions in the law by July 1, 2026. This following information is intended to orient students to the changing landscape of federal student loan programs. The final rules have yet to be published by the Department of Education as of March 2026. We will update this page with updates as we receive them.
What are the major changes introduced by the Act?
- Graduate PLUS loans eliminated for new borrowers: Current borrowers can continue for up to three years or the remainder of their program (whichever is less). They must stay in the same program to remain eligible. Students who take a leave of absence or withdraw on/after July 1, 2026 lose legacy borrowing protections.
- Caps on federal borrowing: Graduate students: up to $20,500 per year, $100,000 aggregate. Professional students: up to $50,000 per year, $200,000 aggregate (with certain programs proposed to be classified as “professional,” see below).
- Total Lifetime Loan Limit: There is a new total lifetime limit across all direct loans (whether undergraduate or graduate loans) of $257,500, excluding Graduate PLUS loans and Parent PLUS loans borrowed on a student’s behalf.
- Loan Proration: Under the new rules, the Department of Education will prorate loans (i.e., reduce the maximum loan limit) for any students enrolled in less-than-full time status.
- Repayment Plans: The law created a new standard repayment plan and a new income-based repayment plan (RAP). Some existing student loan repayment plans will be eliminated on July 1, 2028. For more information, please visit studentaid.gov.
- Professional Student Definition: The Department of Education has proposed defining a subset of graduate programs as “professional,” and five programs at Boston University would meet this definition: Dentistry (DMD), Law (JD), Medicine (MD), Theology (MDiv) and Clinical Psychology (PhD). The Clinical Psychology PhD program is the only program offered by the Graduate School of Arts and Sciences (GRS) that meets this definition (the Psychology Brain, Behavior, & Cognition PhD program and the Psychology Developmental Science PhD program do not).
When do these changes take effect?
Most changes will take effect starting July 1, 2026, and will be in place for the 2026–27 academic year.
What’s happening with graduate loans?
Effective, July 1, 2026, Graduate PLUS loans will no longer be available for new borrowers. Previously, this program allowed students to borrow up to the cost of attendance. Existing borrowers are still eligible for Grad PLUS loans for the remainder of their program or up to three years, whichever is less. Any students who are on a leave of absence greater than 180 days or withdraw from their program on or after July 1, 2026, will lose any legacy borrowing protections, even if they return to the same program during the three-year window. Legacy borrowers will not be able to extend these terms beyond Spring 2029.
What are the new federal graduate borrowing limits?
Graduate students may be eligible for up to $20,500 per year in direct unsubsidized loans, with an aggregate limit of $100,000. Professional students (as defined by the Department of Education, see above) may be eligible for up to $50,000 per year in direct unsubsidized loans, with an aggregate limit of $200,000. If you borrowed before July 1, 2026, you remain eligible for the previous loan limits for the same program.
What options are available for incoming graduate students?
US citizens or permanent residents who are enrolled in at least six credits may apply for an unsubsidized Direct loan for their graduate program. We recognize that students may require additional support beyond the federal Direct loan limits to finance the cost of their education. Many private lenders offer specialized financing options for graduate and professional students, covering up to the full cost of education without annual loan limits or aggregate borrowing limits. Boston University provides information about credible.com, a free online loan selection tool that allows students to compare pre-qualified rates, terms, eligibility rules side-by-side, to help students find the private loan that best meets their needs.
Applying for a Loan
Student loans can play a critical role for helping to finance your education and are a great resource when used conservatively and wisely. You may borrow loans for up to your total Cost of Attendance (which includes the cost of tuition, mandatory fees, living expenses, and BU medical insurance) minus aid received (notably non-service fellowships such as the Dean’s Fellowship, tuition scholarships, and insurance scholarships). We encourage you to carefully consider whether or not you need to borrow, and if you do, to borrow no more than you need or can comfortably repay after leaving school. Information regarding various loan resources can be found by clicking on the options listed below. If you have further questions, do not hesitate to contact grsaid@bu.edu. Please always include your BU ID in all written correspondence. We are here to help you with any information or questions you may have regarding the loan process here at Boston University.
Federal Direct Unsubsidized Loan
Loan Deferments
The University has partnered with the National Clearinghouse to make your registration information available to loan servicers. The University reports the start and end dates of the semesters in which you are registered – as long as you did not restrict the sharing of your personal information. You may also ask the registrar to complete a loan deferment form from your lender. The Graduate School of Arts and Sciences (GRS) does not verify enrollment, please contact the Registrar’s Office and refer to the Registrar’s Office FAQs:
I have a verification form from my student loan lender that needs to be filled out. Can you complete the form? Yes, the Registrar’s Office can complete a verification form sent to us by the student for a lender. You can either come in person to our office, fax (617-353-1869), email a scanned copy of the form to registrar@bu.edu or mail the form to: Office of the University Registrar, Boston University, 881 Commonwealth Ave, Boston, MA 02215.