Undergraduate students and their parents
This information is to inform undergraduate students of upcoming changes to Federal Student Aid programs. This information is accurate as of the date of this communication but is subject to change.
Updates to the Federal Direct Loan program affect:
- Parent eligibility to borrow the Parent PLUS Loan.
- The amount of Federal Direct Subsidized and Unsubsidized Loan students can borrow.
Parent PLUS Loan
If you have previously borrowed Direct Subsidized or Unsubsidized loans or your parent has borrowed a Parent PLUS loan for you, they are eligible to continue to borrow the Parent PLUS loan up to the cost of attendance. To maintain Parent PLUS eligibility, you must remain in the program you are currently enrolled in, not withdraw for a semester, and complete your program in 3 academic years.
If you withdraw from a semester or take more than 3 years to complete your program, your parent will be subject to the new Parent PLUS borrowing limits:
- Your parent can borrow up to $20,000 per academic year with an aggregate limit of $65,000 per student.
- This aggregate limit includes any previous Parent PLUS loans borrowed for you.
If additional funding is needed, you may consider applying for a private educational loan through a bank, credit union, or other lender. A cosigner may be required. Visit our private loan website FastChoice for information about private loan options and to search for lenders.
Enrollment status and scheduled loan reduction
Beginning July 1, 2026, loans for students enrolled less than full-time must be reduced. Federal Direct Loan amounts may be reduced in the current or future semester if you enroll less than full-time or drop below full-time status during the semester. For example, full time status is registering and completing a minimum of 24 credits between the fall and spring semester.
If you have questions or are considering dropping a class after July 1, 2026, please contact Student Financial Services.
Graduate students
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.
This page covers:
- Key changes
- What this may mean for you
- Financial guidance resources
Key Changes
- 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 St. Ambrose University 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.
- New Annual and Aggregate Loan Limits for New Graduate 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 (not including undergraduate loans)
- A separate lifetime limit of $257,500 applies to all federal student loans (excluding Parent PLUS loans borrowed on your behalf; $157,500 for programs available at St. Ambrose University, including undergraduate loans)
- 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 St. Ambrose University 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.
- Proration of Loans Based on Full-Time or Part-Time Enrollment: Beginning July 1, 2026, all borrowers enrolled less than full-time will only be able to borrow an amount proportional to their enrollment status. Full time status is 9 credits fall or spring and 6 credits in the summer. Legacy rules do not apply to loan proration. Further guidance from the U.S. Department of Education is expected in early 2026.
What This May Mean for You
St. Ambrose University 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:
- If you are a current graduate student and you have borrowed or will be borrowing Graduate PLUS Loans this for the 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.
- If you are a graduate student who has borrowed a Direct Unsubsidized Loan but not 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 borrow up to the full cost of attendance beyond July 1, 2026, under the legacy provision.
- If you are a graduate 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.) You will also be subject to the new aggregate lifetime limits.) If you think you will need more than $20,500 after this academic year, see 2. above.
- Also beginning July 1, 2026, your loan will be prorated if you are enrolled less than full time. Full time graduate enrollment at St. Ambrose is 9 credits per semester.
- Proration example: Student is enrolled for 6 credit hours per semester: $20,500 * .6667 = $13,667.
- To find the proration factor, we calculate the ratio of the enrolled credits to the full-time credit load: [Enrollment Intensity = (Credits Enrolled) / (Full-Time Credits)].
- In this example: [Enrollment Intensity = (6/9) = (2/3) ≈ 0.667]
- To calculate the prorated limit, take the current annual loan limit of $20,500 and multiply by the intensity factor: [Prorated Limit = (Annual Limit) × (2/3)]
- In this example: The proration for a graduate student taking 6 credits (where 9 is full-time) would be [(2/3) * $20,500 = $13,667] for the year, or $6,834 per semester or approximately 66.67% of the standard annual federal unsubsidized loan limit.
Financial Guidance Resources
Meet with a financial aid counselor. We offer one-on-one financial aid counseling to guide you. You can schedule an appointment by calling Student Financial Services at 563-333-5775, emailing us at SFS@sau.edu, or by stopping by the office in Ambrose Hall, first floor.
