Important Federal Student Loan Changes Effective July 1, 2026

 

 

Significant changes to federal student loans were recently enacted through the One Big Beautiful Bill Act. These changes will affect how graduate and professional students finance their education beginning on July 1, 2026.

Please review this message carefully, as it outlines how the new rules may apply to you.

Important Notes:

  • The information below reflects the most current guidance available but is subject to change. We will continue to keep you informed as additional guidance becomes available.
  • For purposes of these changes:
    • MLS, HPL, and LLM students are classified as Graduate students
    • JD students are classified as Professional students.

This page covers:

A. Key changes
B. What this may mean for you
C. Financial guidance resources

A. Key Changes

  1. Elimination of the Graduate PLUS Loan Program: Beginning July 1, 2026, the Federal Graduate PLUS Loan program will be discontinued for new borrowers.
  • Legacy Provision: Students who have a Graduate PLUS Loan disbursed before July 1, 2026 and continue to be enrolled at UC Law SF in the same program may continue borrowing $20,500 of Direct Unsubsidized Loans and Graduate PLUS Loans up to the full cost of attendance through June 30, 2029 or until the end of their program, whichever comes first.
  1. New Annual and Aggregate Loan Limits for New Borrowers AFTER June 30, 2026: Students who have not received a Direct Unsubsidized Loan disbursement before July 1, 2026 (“new borrowers”), will be subject to the following new Direct Unsubsidized Loan limits:
  • Annual and Aggregate (lifetime) limits:
    • Graduate: $20,500 annual; $100,000 aggregate
    • Professional: $50,000 annual); $200,000 aggregate
    • Combined graduate + professional borrowing: capped at $200,000
    • A separate lifetime limit of $257,500 applies to all federal student loans (excluding Parent PLUS loans borrowed on your behalf)
    • Note: Graduate PLUS Loans will NOT be available to new borrowers.
  • Legacy Provision: Students who received an Unsubsidized Direct Loan and a Graduate PLUS Loan prior to July 1, 2026, and remain enrolled in the same program at UC Law SF can continue borrowing the current Unsubsidized Direct Loan amount of $20,500 and Graduate PLUS Loans up to the full cost of attendance until June 30, 2029 or program completion, whichever is sooner.
  1. Proration of Loans Based on Full-Time or Part-Time Enrollment: Beginning July 1, 2026, new borrowers enrolled less than full-time will only be able to borrow an amount proportional to their enrollment status. Further guidance from the U.S. Department of Education is expected.

B. What This May Mean for You

UC Law SF’s Office of Financial Aid does not encourage or discourage borrowing. However, we are committed to equipping you with the information and support you need to make sound financial decisions.

Here are some scenarios that may apply to you:

  1. If you are a JD, MLS, CLS, HPL, or LLM student and you have borrowed or will be borrowing Graduate PLUS Loans this upcoming 2025-26 Academic Year: You are covered under the legacy provision and may continue borrowing Graduate PLUS Loans up to the full cost of attendance through June 30, 2029, or the end of your current program, whichever comes first.
  2. If you are a JD student who has not yet borrowed a Direct Unsubsidized Loan and a Graduate PLUS Loan and anticipate needing to borrow more than $50,000 after this academic year: Borrowing Graduate PLUS Loans during this 2025-26 academic year will preserve your eligibility to continue to borrow up to the full cost of attendance beyond July 1, 2026 under the legacy provision.
  3. If you are an MLS, CLS, HPL, or LLM student who has not yet borrowed a Direct Unsubsidized Loan and a Graduate PLUS Loan and anticipate needing to borrow more than $20,500 after this academic year: Borrowing Graduate PLUS Loans during this 2025-26 academic year will preserve your eligibility to continue to borrow up to the full cost of attendance beyond July 1, 2026 under the legacy provision.
  4. If you are a JD student who has not borrowed a Direct Unsubsidized Loan for your current program: You will be subject to the new $50,000 annual borrowing cap beginning July 1, 2026. This limit will remain in effect for the duration of your program. (In other words, this will be the only federal student loan available to you. If you think you will need more than $50,000 after this academic year, see 2 above.)
  5. If you are an MLS, CLS, HPL, or LLM student who has not borrowed a Direct Unsubsidized Loan for your current program: Your annual borrowing cap will be $20,500. This limit will remain in effect for the duration of your program. (Please note that this cap is not new. What is new is that unless you have borrowed Graduate PLUS Loans for this program, the $20,500 of Direct Unsubsidized Loans will be the only federal student loan available to you. If you think you will need more than $20,500 after this academic year, see 3 above.

C. Financial Guidance Resources

  • Meet with a financial counselor: AccessLex offers free, one-on-one financial counseling with accredited professionals. You can schedule a session here: Schedule with AccessLex
  • Schedule a phone appointment with our office: Our Financial Aid Officers are available Monday through Friday, 9 am to 4 pm. Book a time to speak with us here: UC Law SF Financial Aid Booking Page

For additional questions or assistance, please contact the Office of Financial Aid at financialaid@uclawsf.edu.