Federal Loans
Federal student loans are loans funded by the federal government that help eligible students and families pay for college. Federal student loans must be repaid with interest.
Important: Students must be enrolled at least half-time to be eligible to receive federal student loans, including Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Parent PLUS and Graduate PLUS Loans.
Being enrolled at least half-time does not necessarily mean that a student is eligible for the full annual loan amount. Beginning July 1, 2026, students enrolled less than full-time may have their annual Direct Loan eligibility reduced under applicable proportional loan-limit rules.
Federal Student Loan Changes at a Glance
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made significant changes to federal student loan programs beginning July 1, 2026.
Federal | New Rule |
Lifetime | $257,500 |
Parent | $20,000 |
Graduate | $20,500 |
Professional | $50,000 |
Graduate | Generally |
Minimum | Students |
Less-Than-Full-Time | Students |
Certain borrowers may qualify for a limited exception to the new loan limits based on their enrollment and federal borrowing history. La Roche University will determine federal loan eligibility in accordance with applicable federal regulations and U.S. Department of Education guidance.
Because eligibility may depend on a student’s program, enrollment status, prior federal borrowing, and whether the student qualifies for an applicable exception, students should contact the Office of Financial Aid with questions about how these changes may affect them.
Federal Direct Subsidized Loan
The Federal Direct Subsidized Loan is available to eligible undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan during eligible periods, including while the student is enrolled at least half-time and during certain deferment periods.
Students must be enrolled at least half-time to receive a Direct Subsidized Loan.
Repayment generally begins after the student graduates, leaves school, or drops below half-time enrollment, subject to applicable federal requirements.
- Application: FAFSA. First-time Direct Loan borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) before their first Direct Loan can be disbursed.
- Loan Limits: The annual and aggregate Direct Subsidized Loan limits for undergraduate students remain unchanged under the OBBBA.
- Enrollment: Students must be enrolled at least half-time to receive a Direct Subsidized Loan.
- Deadline: Loans must be certified by the Office of Financial Aid prior to the student’s last day of enrollment.
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is available to eligible undergraduate, graduate, and professional students. Eligibility is not based on financial need.
Students must be enrolled at least half-time to receive a Direct Unsubsidized Loan.
The borrower is responsible for interest that accrues on an unsubsidized loan from the date the loan is disbursed. Students may choose to pay the interest as it accrues or allow unpaid interest to capitalize when permitted under federal requirements.
Repayment generally begins after the student graduates, leaves school, or drops below half-time enrollment, subject to applicable federal requirements.
Undergraduate Students
The annual and aggregate Direct Subsidized and Direct Unsubsidized Loan limits for undergraduate students remain unchanged under the OBBBA.
Dependent Undergraduate Students
- First year: $5,500 combined, including up to $3,500 in Direct Subsidized Loans
- Second year: $6,500 combined, including up to $4,500 in Direct Subsidized Loans
- Third year and beyond: $7,500 combined, including up to $5,500 in Direct Subsidized Loans
- Aggregate limit: $31,000, including no more than $23,000 in Direct Subsidized Loans
Independent Undergraduate Students and Certain Dependent Students Whose Parents Are Unable to Obtain a Direct PLUS Loan
- First year: $9,500 combined, including up to $3,500 in Direct Subsidized Loans
- Second year: $10,500 combined, including up to $4,500 in Direct Subsidized Loans
- Third year and beyond: $12,500 combined, including up to $5,500 in Direct Subsidized Loans
- Aggregate limit: $57,500, including no more than $23,000 in Direct Subsidized Loans
Graduate and Professional Students
Beginning July 1, 2026, new Direct Unsubsidized Loan limits apply to graduate and professional students who are not eligible for an applicable OBBBA exception.
Graduate Students
- Annual Direct Unsubsidized Loan limit: $20,500
- Aggregate Direct Unsubsidized Loan limit: $100,000
Professional Students
- Annual Direct Unsubsidized Loan limit: $50,000
- Aggregate Direct Unsubsidized Loan limit: $200,000
Certain eligible health professions programs may have different limits under federal law.
A student’s classification as a graduate or professional student is determined under federal requirements. The amount a student is actually eligible to receive may be less than the applicable annual or aggregate limit.
Certain graduate and professional students who qualify for the OBBBA limited exception may remain subject to the applicable pre-OBBBA loan limits during the exception period.
Application: FAFSA. First-time Direct Loan borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) before their first Direct Loan can be disbursed.
Deadline: Loans must be certified by the Office of Financial Aid prior to the student’s last day of enrollment.
Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan allows an eligible parent of a dependent undergraduate student to borrow to help pay the student’s educational expenses.
The dependent undergraduate student must be enrolled at least half-time at an eligible school.
Beginning July 1, 2026, the OBBBA establishes new annual and aggregate limits for Parent PLUS Loans.
Parent PLUS Loan Limits Beginning July 1, 2026
For parents who are not eligible for the applicable limited exception:
- Annual limit: $20,000 per dependent undergraduate student
- Aggregate limit: $65,000 per dependent undergraduate student
- The $65,000 aggregate limit applies to the combined Parent PLUS borrowing on behalf of the dependent student and is not a separate $65,000 limit for each parent.
- Amounts previously repaid, forgiven, canceled, or discharged do not restore eligibility once the applicable aggregate limit has been reached.
The amount a parent may actually borrow is also limited by the student’s cost of attendance and other financial assistance.
Parent PLUS Limited Exception
Certain dependent undergraduate students and their parent borrowers may qualify for an exception to the new Parent PLUS limits based on the student’s enrollment and federal borrowing history.
For borrowers who qualify for the exception, the new Parent PLUS aggregate limit does not apply during the applicable exception period.
Parent PLUS Credit Requirements
Parents are subject to a federal credit check. If approved, the parent must complete a Master Promissory Note (MPN).
Parent PLUS Loan Denial
If a parent is unable to obtain a Direct PLUS Loan because of an adverse credit history, the dependent undergraduate student may be eligible for additional Direct Unsubsidized Loan funds, subject to applicable federal eligibility requirements and the student’s annual loan limits.
Important: A dependent student is not automatically eligible for additional Direct Unsubsidized Loan funds simply because a parent has reached the $65,000 Parent PLUS aggregate limit. Federal guidance distinguishes a PLUS Loan denial based on adverse credit from reaching the Parent PLUS aggregate limit.
Application: FAFSA and the Federal Direct PLUS Loan application. Parents must complete the required federal credit check and, if approved, complete a Master Promissory Note (MPN).
Deadline: Parent PLUS Loans must be certified by the Office of Financial Aid prior to the student’s last day of enrollment.
Federal Direct Graduate PLUS Loan
Important Change Effective July 1, 2026
Beginning July 1, 2026, new Direct Graduate PLUS Loans are generally no longer available to graduate and professional students.
A limited exception allows certain qualifying continuing graduate and professional students to receive Direct PLUS Loans during their applicable exception period.
Graduate PLUS Limited Exception
A graduate or professional student may qualify for the limited exception if the student:
- Was enrolled in the program of study at the institution as of June 30, 2026;
- Borrowed a Direct Loan for that program of study before July 1, 2026;
- Remains enrolled at the same institution in the same program of study; and
- Has not had a break in enrollment in that program at that institution, subject to applicable federal requirements.
An approved leave of absence is not considered a break in enrollment.
For an eligible student, the Graduate PLUS exception applies for the student’s expected time to credential, subject to federal requirements.
Students who do not qualify for the limited exception are not eligible for new Direct Graduate PLUS Loans.
The online Direct PLUS Loan application cannot determine whether a student qualifies for the limited exception. La Roche University will make the final determination based on federal requirements and the student’s enrollment and federal loan history.
Lifetime Maximum Federal Student Loan Limit
Beginning July 1, 2026, the OBBBA establishes a $257,500 lifetime maximum aggregate loan limit for a student borrower.
The lifetime maximum generally includes federal student loans received for undergraduate, graduate, and professional study, including Direct Loans and applicable FFEL Program loans. Graduate and professional Direct PLUS Loans also count toward this lifetime maximum.
Parent PLUS Loans borrowed by a parent on behalf of a dependent undergraduate student are not included in the student’s $257,500 lifetime maximum.
Once a borrower is subject to the $257,500 lifetime maximum and reaches that limit, the borrower is no longer eligible to receive additional Title IV loans, even if previously borrowed amounts have been repaid, forgiven, canceled, or discharged.
Limited Exception to the Lifetime Maximum
The $257,500 lifetime maximum does not apply during the applicable OBBBA limited exception period for borrowers who qualify for the exception.
NSLDS will continue to calculate and display the lifetime maximum information for exception borrowers. Therefore, a qualifying exception borrower may appear in NSLDS as having reached or exceeded $257,500 while remaining eligible for federal loans under the applicable pre-OBBBA limits during the exception period.
Once the exception period ends, the new loan limits—including the $257,500 lifetime maximum—apply.
Students who are subject to the new lifetime maximum and have already exceeded $257,500 in qualifying federal student loans have no remaining federal student loan eligibility.
Federal Loan Eligibility and Enrollment Status
Students must be enrolled at least half-time to receive federal student loans, including:
- Federal Direct Subsidized Loans
- Federal Direct Unsubsidized Loans
- Federal Direct PLUS Loans
Important: Meeting the half-time enrollment requirement establishes minimum eligibility for federal student loans. It does not necessarily mean that a student is eligible for the full annual loan amount.
Beginning July 1, 2026, applicable Direct Loan limits may be reduced proportionally for students who are enrolled less than full-time. Therefore, a student enrolled half-time may qualify for a smaller loan amount than a student enrolled full-time.
Students should contact the Office of Financial Aid if they have questions about how their enrollment level affects their federal loan eligibility.
Important Direct Loan Information
- All first-time Direct Loan borrowers at La Roche University must complete Entrance Counseling before their first Direct Loan can be disbursed.
- First-time Direct Loan borrowers must also complete and sign a Master Promissory Note (MPN).
- Loan funds cannot be disbursed until all required federal loan requirements have been completed.
- Generally, an MPN remains valid for up to 10 years and may not need to be completed again for subsequent Direct Loans, subject to federal requirements.
- Students can complete required loan counseling and the MPN online through StudentAid.gov using their Federal Student Aid (FSA) ID.
- Students should monitor their federal loan history through their StudentAid.gov account because prior federal borrowing can affect future eligibility.
Federal Loan Eligibility After July 1, 2026
Federal student loan eligibility is determined based on federal regulations and the student’s individual financial aid history.
Eligibility may be affected by:
- Dependency status
- Enrollment status
- Grade level
- Academic program
- Prior federal student loan borrowing
- Undergraduate, graduate, or professional student classification
- Parent PLUS borrowing
- Applicable annual and aggregate loan limits
- The $257,500 lifetime maximum aggregate loan limit
- Whether the student qualifies for an OBBBA limited exception
- The student’s remaining eligibility under applicable federal loan limits
- Enrollment intensity and applicable proportional loan-limit requirements
Students should not assume that federal loan eligibility from a prior academic year will remain the same for a subsequent academic year.
Contact the Office of Financial Aid
If you have questions about federal student loans, the OBBBA changes effective July 1, 2026, or how these changes may affect your eligibility, please contact the La Roche University Office of Financial Aid.
Office Hours
Monday–Thursday: 8:30 a.m.–4:30 p.m.
Friday: 8:30 a.m.–12:00 p.m.
Phone: 412-536-1125
Email: finaid@laroche.edu
