Last updated Dec. 15, 2025
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.
No. Your current 2025-26 fall/spring financial aid package will not be impacted by this new law.
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.)
Prior to July 1, 2026: Eligible graduate and law students have a lifetime aggregate limit of $138,500. Eligible medical students can borrow up to $224,000. These lifetime amounts include any subsidized and unsubsidized loans borrowed at the undergraduate level.
July 1, 2026 and Beyond: Eligible graduate students have a lifetime aggregate limit of $100,000. Eligible medical and law students have a lifetime aggregate limit of $200,000. These lifetime amounts do not include any subsidized and unsubsidized loans borrowed at the undergraduate level.
Yes. If a borrower has a federal student loan (Direct Unsubsidized or Grad PLUS) disbursed in their current academic program before July 1, 2026, the student can borrow under current annual and lifetime loan limits for three academic years or the remainder of their expected time to graduation, whichever is less.
Prior to July 1, 2026: If a borrower has a federal loan (Federal Unsubsidized or Grad PLUS) disbursed for their current academic program before July 1, 2026, the student can continue to borrow for three academic years or the remainder of their expected time to graduation, whichever is less.
July 1, 2026 and Beyond: New graduate and professional student borrowers are not eligible for the Graduate PLUS Loan program.
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.
No. Your current 2025-26 fall/spring financial aid package will not be impacted by this new law.
Your 2025-26 Pell Grant award will not change. Congress provided an additional $10 billion to make sure Pell recipients were fully-funded for the 2025-26 school year. Additional action will need to be taken by Congress to secure funding for 2026-27 and beyond.
Campus-based programs including FSEOG have been funded for the current 2025-26 school year. We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond.
Campus-based programs including FWS have been funded for the current 2025-26 school year. We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond.
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.
Beginning with the 2026-27 school year, students enrolled less than full time may have their loans prorated. Students enrolled less than half time are not eligible for federal student loan disbursement.
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, 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 student's completion of their degree, whichever is less.
Contact the Spartan One-Stop at onestop@msu.edu or (517) 432-8000.
Important Notice: This information is based on the current understanding of new rules and regulations as they relate to federal student financial aid, and could change with little notice. We will update and add to this page as additional guidance is received from the U.S. Department of Education.