Federal Student Loan Changes 2026–27
What to Know About OB3
Beginning July 1, 2026 (2026-27 academic year), federal legislation known as the One Big Beautiful Bill Act (OB3)
that includes major changes to federal student loans goes into affect. These changes include federal loan eligibility,
borrowing limits, Grad PLUS loans, Parent PLUS loans, and enrollment requirements which may impact students at CIU.
CIU is actively monitoring guidance from the U.S. Department of Education and Federal Student Aid (FSA).
This page will continue to be updated as additional federal guidance becomes available.
KEY FEDERAL STUDENT LOAN CHANGES
Starting With the 2026–27 Academic Year
- Federal student loans will be prorated based on enrollment level
- Grad PLUS loans will end for many new borrowers
- Parent PLUS loans will have new borrowing caps
- Graduate and professional student loan limits will change
- New lifetime federal student loan limits will apply
- Some continuing students may qualify for legacy borrower protections
LEGACY BORROWER STATUS
Are You a Legacy Borrower?
Some students may qualify for temporary legacy borrower protections under OB3. You may qualify as a legacy borrower if you answer YES to all of the following:
- You received a federal Direct Loan before July 1, 2026
- You were enrolled in your current CIU program on or before June 30, 2026
- You have remained continuously enrolled in the same program
Approved leaves of absence generally do not count as a break in enrollment.
If you respond YES to all questions, you may qualify for legacy protections, allowing you to continue borrowing under certain prior federal loan rules for a limited time — usually up to your expected time to credential.
Loan Proration & New Limits
Loan Proration Based on Enrollment Status
Beginning July 1, 2026, federal student loan eligibility will be adjusted based on enrollment status.
CIU Enrollment Standards for Federal Aid
For federal financial aid purposes, CIU defines full-time enrollment as:
- Undergraduate students: 12+ credit hours
- Graduate students: 9+ credit hours
- Doctoral or advanced students: 3+ credit hours
Students enrolled less than full-time may receive reduced annual federal loan eligibility.
Example: A graduate student enrolled in 4.5 credit hours may qualify for only 50% of the annual federal student loan limit.
This federal loan proration applies to:
- Undergraduate Direct Loans
- Graduate Direct Unsubsidized Loans
- Professional student Direct Unsubsidized Loans
Legacy borrowers are still subject to enrollment-based loan proration requirements.
Changes to PLUS & Grad PLUS Loans
Grad PLUS Loan Change
Beginning July 1, 2026:
- Grad PLUS loans will no longer be available for most new borrowers
- Some continuing students may temporarily qualify for legacy borrower exceptions
Students may qualify for the Grad PLUS legacy exception if they:
- Borrowed Grad PLUS loans before July 1, 2026
- Remain continuously enrolled in the same program at CIU
Changing programs or breaking enrollment may end legacy eligibility.
Parent PLUS Loan Change
For new Parent PLUS borrowers beginning July 1, 2026:
- Annual borrowing limit: $20,000 per student
- Lifetime borrowing limit: $65,000 per student
New Federal Loan Limits
Graduate Student Loan Limits (Non-Professional Programs)
Students enrolled in non-professional graduate degree programs may qualify for:
- Up to $20,500 annually in Direct Unsubsidized Loans
- Up to $100,000 in total aggregate borrowing
Grad PLUS loans will not be available for most new graduate borrowers.
Professional Degree Programs at CIU
Students enrolled in designated professional degree programs may qualify for higher borrowing limits:
- Up to $50,000 annually
- Up to $200,000 aggregate borrowing
Loan eligibility may still be prorated based on enrollment level.
Lifetime Federal Student Loan Maximum
A new lifetime federal student loan cap of $257,500 applies to most borrowers, excluding Parent PLUS loans.
Professional Degree Designation at CIU
Under OB3, federal loan limits depend on whether a program is classified as a professional degree, based on federal definitions and CIP codes.
At Columbia International University, the following programs are considered professional degree programs for federal loan purposes:
- MA Theological Studies
- Master of Divinity (MDiv) – all concentrations
- Doctor of Ministry (DMin)
- MA Counseling
- PhD in Counselor Education & Supervision
Students enrolled in these programs may qualify for professional student Direct Unsubsidized loan limits, subject to:
- CIU enrollment level standards
- Aggregate and lifetime caps
What Students Should Do Now
Review your enrollment level before registering for classes.
Understand whether you qualify as a legacy borrower and what actions may affect that status.
Plan for potential funding gaps, especially in graduate and professional programs without Grad PLUS.
Review your borrowing history to avoid reaching aggregate or lifetime limits.
Contact CIU Student Financial Services before making enrollment, program, or leave-of-absence decisions.
Questions?
(803) 807-5036 | finaid@ciu.edu
CIU Administration Building
7435 Monticello Road, Columbia, SC 29203
