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Federal Financial Aid Updates
In 2025, the One Big Beautiful Bill Act (OBBBA), 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.
Attention: Some of the MyBU Student screens and online forms may be unavailable on smart phones. We highly recommend using a non-mobile device to access websites. If you encounter any issues with your web browser, please try using a different web browser.
How do I apply for loans?
Can I apply for a loan if I am receiving a fellowship?
It depends. Your total aid, including all loans, scholarships, and non-service stipends (such as a Dean’s Fellowship stipend), cannot exceed your cost of attendance (or “budget”). See “”How do I calculate my “budget” or cost of attendance?”” below. Service stipends, such as teaching and research fellowships, do not count towards your cost of attendance figure. Therefore, you may be eligible to take out a small loan for living expenses if you are receiving a service fellowship. Please contact at grsaid@bu.edu (and include your BU ID) if you have questions about this.
How do I calculate my “budget” or cost of attendance?
To determine how much you can borrow, you must look at your Cost of Attendance (CoA) and subtract any merit-aid you receive. Examples of merit-aid are scholarships and non-service stipends and awards. Service stipends (ex: teaching or research) do not count against your eligibility. If you are enrolled in less than 12 credits, you must use the per-credit rate to calculate your tuition charges each semester.
Here is an example of a fully funded full-time student (registered for 12-18 credits/semester) who has a non-service Training fellowship in the fall semester and a Teaching fellowship in the spring semester. This student would be able to borrow up to $4,723:
| Cost of Attendance (CoA) | AY26-27 |
| Tuition (36,512/sem) | $73,024 |
| Student Services Fee ($229/sem) | $458 |
| Health & Wellness Fee ($295/sem) | $590 |
| Student Health Insurance (annual plan) | $4,054 |
| Housing | $12,315 |
| Food | $3,935 |
| Personal | $3,292 |
| Transportation | $1,120 |
| Books and Supplies | $1,264 |
| Direct Loan Fees | $214 |
| Total | $100,266 |
| Merit-based Financial Aid | AY26-27 |
| Tuition Scholarship (tuition & fees) | $74,072 |
| Non-Service Stipend (fall only) | $17,417 |
| Health Insurance Credit | $4,054 |
| Total | $95,543 |
| Need | AY26-27 |
| Cost of Attendance (CoA) | $100,266 |
| Merit-based Financial Aid | $95,543 |
| CoA minus Aid | $4,723 |
Please contact at grsaid@bu.edu (and include your BU ID) if you need assistance with determining your budget for the academic year.
When and how can I access the loan funds for my living expenses?
Loan funds are credited to the student’s account and the earliest that a refund can be released to the student is the first day of classes. Keep in mind that academic year loan disbursements are split evenly between both semesters, and you may only request a refund for the current semester’s loans. You can request an electronic refund by submitting a Graduate Student Refund Request Form.
Important! In compliance with federal regulations, automatic refunds will be processed for all Federal Financial Aid recipients whose total federal funds exceed allowable semester expenses, unless the student or parent borrower (for PLUS loans) authorizes the University to retain the funds to cover other expenses. Students can file a Federal Financial Aid Credit Authorization through MyBU Student , select “Student Permissions” from the Financials navigation in the left-hand menu. Please refer to the Student Financials Office page,under Federal (Title IV) Refunds.
Can you verify my enrollment at BU for my student loan servicer?
Please refer to our PhD & MFA: Enrollment Verification FAQ page for detailed information.
There is an issue with my loan deferral
The University reports the start and end dates of the semesters in which you are registered to the National Clearinghouse – as long as you did not restrict the sharing of your personal information. Please check your Privacy Preferences and adjust your Identity & Access Management settings if necessary.
If you have any questions or encounter any issues generating an enrollment verification, please contact the Office of the University Registrar (OUR) at registrar@bu.edu. The Financial Aid Office of the Graduate School of Arts and Sciences (GRS) cannot assist with deferral inquiries or requests. You must follow up with the Registrar directly.