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Last updated July 28, 2026
On July 4, 2025, the President of the United States signed into law major changes to the U.S. tax code, as well as federal programs that receive mandatory funding, such as federal student loans. We realize many Spartan families have concerns about how these changes might affect their ability to pay for college. This page will answer many of these questions, and will be updated as more information becomes available.
For the purposes of this FAQ, the following definitions apply:
Disbursement: Fund(s) have been applied to your student account.
New borrowers: Anyone who has not had a federal student loan disbursed prior to July 1, 2026.
Less than half time: Any undergraduate student attempting less than 6 credits in a given term. Different credit levels may exist for graduate and professional students.
New graduate or professional student for fall semester 2026: If you are a new graduate or professional student (or just changed your program), you are not eligible to receive a Graduate PLUS Loan.
Returning graduate or professional student: If you are a returning student who qualifies for the legacy exception (read more on this page for legacy information), Graduate PLUS Loan information is taking longer than usual to be added to financial aid packages as we wait for implementation and testing of updates to our financial aid software system. These updates are necessary to create accurate awarding information based on new guidelines in the One Big Beautiful Bill Act. We anticipate having Graduate PLUS Loan information for all eligible students reflected in the student financial aid portal (student.msu.edu) by mid-August.
Currently, the federal loans website (studentaid.gov) will not determine if you are eligible for the legacy exception that allows for Graduate PLUS Loan availability, and it is possible to apply and be approved even if you are not eligible. If you are ineligible, you will not have a Graduate PLUS Loan in your MSU financial aid package. Read further on this page to determine if you are eligible for legacy loan exceptions. For more information, contact Spartan One-Stop.
Prior to July 1, 2026: Eligible graduate and law students can borrow up to $20,500 annually. Medical students can borrow up to $40,500 for fall/spring. Additional funds for summer are available for medical students.
July 1, 2026 and Beyond: Eligible graduate students can borrow up to $20,500 annually. Medical and Law students can borrow up to $50,000 annually. (For financial aid purposes, advanced degrees in Nursing and Physician's Assistant are considered graduate level programs, not professional per the U.S. Department of Education's official designations.)
Aggregate Limits
Prior to July 1, 2026: Eligible graduate and law students have an aggregate limit of $138,500. Eligible medical students can borrow up to $224,000. These amounts include any subsidized and unsubsidized loans borrowed at the undergraduate level.
If a student repays a portion of the student loan, then the aggregate amount is adjusted to reflect the outstanding principal balance owed on the loans.
July 1, 2026 and Beyond: Eligible graduate students have an aggregate limit of $100,000. Eligible Medical and Law students have an aggregate limit of $200,000, including what may have been borrowed as a graduate student. These amounts do not include any subsidized and unsubsidized loans borrowed at the undergraduate level.
Lifetime Limits
Prior to July 1, 2026: No lifetime limit separate from the aggregate limits.
July 1, 2026 and Beyond: Students are limited to borrowing $257,500 in federal student loans. This includes Federal Perkins Loans, Direct Subsidized/Unsubsidized loans at both undergraduate and graduate levels, and Graduate PLUS loans.
If a student repays a portion of the student loan, the lifetime loan limit is not adjusted to reflect the outstanding principal balance owed on the loans.
Prior to July 1, 2026: There are no aggregate or lifetime loan limits for Graduate PLUS loans.
July 1, 2026 and Beyond: Prior Graduate PLUS borrowing may affect your future Unsubsidized Loan eligibility. For further information about your lifetime and aggregate limits, contact a financial aid advisor.
Yes. Beginning with the 2026-27 school year, a Schedule of Reduction (SOR) may be required to adjust federal loans for enrollment below full time. Federal loans impacted include Direct Unsubsidized and Graduate PLUS loans even if a student qualifies for the legacy loan provisions.
Yes. If a borrower has a federal student loan (Direct Unsubsidized or Graduate PLUS) disbursed in their current academic program before July 1, 2026, the student may be able to borrow under current annual and aggregate loan limits for up to three academic years or the “expected time to credential," whichever is less.
The expected time to credential is based on the length of the program measured in academic years starting from the term that the student began the program, regardless of how many credits the student attempts or earns or how much time they anticipate needing to complete their program. Bachelor’s degrees and medical programs are four-year programs. Most master’s degrees and Agricultural Technology certificates are two-year programs. Most doctoral programs are five-year programs. The JD (law) program is a three-year program. So, a student who began a two-year master’s program in the fall of 2025 would only qualify for one year of legacy loan provisions.
For financial aid purposes at MSU, a “professional” student is defined as a student earning a degree in Human Medicine (M.D.), Osteopathic Medicine (D.O.), Veterinary Medicine (D.V.M.), or Law (J.D.).
No. Current guidance says that students who withdraw or take a leave from their program will lose access to legacy loan provisions immediately and be subject to aggregate and lifetime limits based on past borrowing.
In most situations, a change in program will result in loss of legacy provisions. This includes switching from a master's to a Ph.D. in the same subject, or vice versa. If considering a progam change, contact Spartan One-Stop for guidance.
Prior to July 1, 2026: If a borrower has a federal loan (Federal Unsubsidized or Graduate PLUS) disbursed for their current academic program before July 1, 2026, the student can continue to borrow for three academic years or the “expected time to credential,” whichever is less.
July 1, 2026 and Beyond: New graduate and professional student borrowers are not eligible for the Graduate PLUS Loan program.
No. Currently, studentaid.gov is not evaluating the legacy status of applicants. That eligibility check happens when the loan information is received at MSU. If you know you do not qualify for Grad PLUS, do not apply. If you are unsure of your eligibility after reading this FAQ page, contact Spartan One-Stop for additional information.
There are no extensions to the legacy loan provisions. At the end of your eligibility period, you will be subject to the new annual, aggregate and lifetime loan limits. Students who have borrowed a substantial amount of funding through the Graduate PLUS loan program may find themselves no longer eligible for any federal loans.
For students in programs where summer attendance is required, total student loan eligibility will be split over three semesters (fall/spring/summer) instead of two (fall/spring).
We are still waiting for additional guidance from the U.S. Department of Education.
Graduate and professional students continue to have access to private student loans from a variety of lenders. Please visit our ELMSElect site to compare terms and conditions from some lenders that MSU students have utilized in the past.
Contact the Spartan One-Stop or a professional team financial aid advisor for more information about your specific financial aid package.
Yes. Beginning with the 2026-27 school year, a Schedule of Reduction (SOR) may be required to adjust federal loans for enrollment below full time. Federal loans impacted include Direct Subsidized and Direct Unsubsidized loans. Parent PLUS Loans are not subject to SOR.
Yes. Under current federal rules and regulations, eligible undergraduate students with demonstrated financial need can still qualify for a subsidized loan for the current aid year and beyond.
Yes. Under current federal rules and regulations, undergraduate students can still qualify for an unsubsidized loan for the current aid year and beyond.
Contact the Spartan One-Stop at onestop@msu.edu or (517) 432-8000.
Parent PLUS Loan information is taking longer than usual to be added to financial aid packages, as we wait for implementation and testing of necessary updates to our financial aid software system. These updates are required to create accurate awarding information, based on new guidelines as a result of the One Big Beautiful Bill Act. We anticipate having Parent PLUS Loan information for all eligible students reflected in the student financial aid portal (student.msu.edu) by mid-August.
Currently, the federal loans website (studentaid.gov) will not tell you if you are eligible for the legacy exception that allows for previous Parent PLUS Loan availability and maximums. If you are a new student to MSU for fall semester 2026, you are not eligible for the legacy exception and are eligible for a maximum $20,000 Parent PLUS Loan. Read further on this page to determine if you are eligible for legacy loan exceptions. For more information, contact Spartan One-Stop.
Prior to July 1, 2026: Eligible parents of dependent undergraduate students can borrow Parent PLUS Loan funds up to the full Cost of Attendance, minus any other financial aid, to help finance their student's education.
July 1, 2026 and Beyond: Eligible parents of dependent undergraduate students can borrow up to $20,000 annually in Parent PLUS Loan to help finance their student's education.
Prior to July 1, 2026: There is no lifetime borrowing limit for parents of students with Parent PLUS Loans who have borrowed under the Parent PLUS Loan program prior to July 1, 2026.
July 1, 2026 and Beyond: New parent borrowers have a $65,000 lifetime aggregate limit per dependent student.
Parents and their students may research and apply for private student loans if they require additional funding. Your financial aid package can contain both a Parent PLUS Loan and a private loan. Total financial aid can never exceed the overall Cost of Attendance. This ELMSelect page compares a number of the most-utilized private student loans at MSU, but families may borrow from any lender that offers student loan options.
Yes. If a student or parent borrower has any federal loans disbursed before July 1, 2026, the parent can continue to borrow under pre-July 1, 2026 annual and lifetime Parent PLUS Loan limits for three academic years or the “expected time to credential,” whichever is less.
The expected time to credential is based on the length of the program measured in academic years starting from the term that the student began the program, regardless of how many credits the student attempts or earns or how much time they anticipate needing to complete their program. Bachelor’s degrees are four-year programs. So, a student who began a bachelor's program in the fall of 2024 would only qualify for two years of legacy loan provisions. If a student transfers credits from another institution or work done in high school, this may shorten the expected time to credential.
No. Students who withdraw or take a leave from their program will lose access to the legacy provisions immediately. Students will not lose legacy eligibility if they do not attend in the summer.
Students who change majors will retain their legacy eligibility. However, students pursuing an Ag Tech certificate who now wish to pursue a bachelor's degree will not retain their legacy eligibility. Similarly, once a student completes their first bachelor's degree and pursues a second bachelor's degree, they will lose legacy eligibility.
No. Parent PLUS Loans are not subject to a Schedule of Reduction (SOR). Federal loans require at least half-time enrollment.
There are no extensions to the three-year legacy provisions; at the end of that period, you will be subject to the new annual and aggregate loan limits.
Contact the Spartan One-Stop at onestop@msu.edu or (517) 432-8000.
Any federal student loans originated July 1, 2026, or later will have two repayment options available: the standard repayment plan and the Repayment Assistance Plan (RAP). If you are currently enrolled in a previous income-based repayment plan, you will be moved to one of the new plans over the next couple of years. More information on these changes can be found at Federal Student Aid.
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