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.
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.)
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 an unsubsidized loan disbursed in their current program before July 1, 2026, a student will 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 disbursed for that academic program before July 1, 2026, the borrower can continue to borrow for three academic years or the remainder of their expected time to credential, whichever is less.
July 1, 2026 and Beyond: New graduate borrowers are not eligible for Graduate PLUS.
Graduate students continue to have access to private alternative loans from a variety of lenders. Please visit our ELMSElect site to compare terms and conditions from some lenders that some current and previous 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.
No. Campus-based programs including FSEOG have been funded for the upcoming 2025-26 school year. We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond.
No. Campus-based programs including FWS have been funded for the upcoming 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 fall 2026, students enrolled for less than full time…
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.
July 1, 2026 and Beyond: Dependent undergraduate students can have eligible parents borrow up to $20,000 in Parent PLUS Loan funds on their behalf, annually.
Prior to July 1, 2026: There is no lifetime borrowing limit for parents of students with PLUS Loans that disburse prior to July 1, 2026. …with any federal loan that has disbursed prior to July 1, 2026. Add language about changes in program, once clarified
July 1, 2026 and Beyond: New parent borrowers have a $65,000 aggregate limit per dependent student. Add language about canceled/modified loans, once clarified
Parents and their students will need to research and apply for private student loans if they require additional funding. Your financial aid package can contain both Parent PLUS Loan and a private loan funding in the same term. This ELMSelect page compares a number of the most-used 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 loan disbursed before July 1, 2026, while the dependent student is enrolled, the parent can continue to borrow under current annual and lifetime loan limits for three academic years or the remainder of their dependent student's expected time to graduation, whichever is less.
Contact the Spartan One-Stop at onestop@msu.edu or (517) 432-8000.
This information is based on the best 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.