The new aggregate loan limit for all students is $257,500. Students who fall into the interim exception are not impacted by the new limit and the limit does not include amounts borrowed by an individual on behalf of their own dependent. It only includes loans borrowed by the individual student, or by the student’s parents to fund that student’s education.

What Has Changed?

Effective for Berkeley College’s Spring 2026/Fall 2026 cohort, we are now required to prorate a student’s annual federal loan eligibility based on enrollment level.

• Students enrolled half-time are eligible for only 50% of their annual loan amount.
• This change applies to all loans disbursed beginning with the 2026-2027 award year.

What Does This Mean?

Federal loans are now treated as annual loans that are tied to a student's enrollment across the full borrower-based academic year (BBAY). At Berkeley, you can be in one of the following cohorts:

• Fall/Winter
• Winter/Spring
• Spring/Fall

This new law’s impact on our students starts with the Spring 2026/Fall 2026 cohort, while it does not impact those students in the Winter 2026/Spring 2026 cohort.

• No more than 50% of a student’s annual loan eligibility can be disbursed in a single term.
• If a student’s enrollment level changes during the year, any remaining loan disbursements must be adjusted in the following semester to reflect the updated enrollment.
• Undergraduate students enrolled in fewer than 24 total credits across a BBAY will have their loan amounts adjusted during the second semester.
• See detailed examples of proration in the Federal Financial Aid Programs section of our 2025-2026 Undergraduate catalog.

The One Big Beautiful Bill Act (OBBBA) introduces new limits on Parent PLUS Loans beginning July 1, 2026. Below is a summary of what parents and students should know.

• A $65,000 lifetime (aggregate) limit now applies per student.
• Eligible parents may borrow up to $20,000 per academic year.
• Parents who borrow more than $16,250 in a single academic year may have reduced eligibility remaining for their student’s fourth year.

These changes apply to new borrowing starting July 1, 2026.

Interim Exception (Who Is Not Affected on July 1, 2026)

Students and families may qualify for the interim exception, which allows continued borrowing under prior rules:

• Students who borrowed any Federal Direct Loan (Subsidized or Unsubsidized), or
• Parents who borrowed a Parent PLUS Loan for the student before July 1, 2026

Students and parents may continue to apply for and receive these loans up to the student’s cost of attendance, minus other financial aid.

Important Interim Exception Requirements

• The Interim Exception is valid for up to three academic years or until the student completes their degree—whichever comes first.
• The student must remain continuously enrolled at Berkeley College:
  • At least 6 credits per semester for each semester (Fall/Winter/Spring)
  • A leave of absence will end eligibility under the Interim Exception.

Aggregate Loan Borrowing Limit

The aggregate lifetime aggregate limit for a Graduate Student borrowing for a program that awards a graduate credential upon completion is $100,000. Students who fall into the interim exception are not impacted by the new aggregate limit.

See Berkeley College's Graduate Catalog for changes to graduate student loan eligibility under the OBBBA.

What's changed?

Family-owned assets—like small businesses and farms that are your family’s primary residence—are no longer counted when calculating your Student Aid Index (SAI).

What does this mean for you?

Your SAI is a number calculated using information from your FAFSA, and it helps determine how much financial aid you can receive. The lower your SAI, the more financial aid you may be eligible for.

What's changed?

If you receive grants or scholarships from non-federal sources that cover your entire cost of attendance, you will not be eligible for a Pell Grant. This would be a rare situation at Berkeley College, however, if you believe you fall into this category you should contact a Financial Aid Advisor.

In addition, students are no longer eligible for a Pell Grant if their Student Aid Index (SAI) is equal to or greater than twice the maximum Pell Grant amount.

What does this mean for you?

What's changed?

If you take out new student loans on or after July 1, 2026, you'll have two repayment plan options:

• Standard repayment plan
• Repayment assistance plan (RAP)

What does this mean for you?

All of your loans must be repaid under one repayment plan.

If you borrowed student loans before July 1, 2026, and take out additional loans after that date, you’ll need to choose between the new standard repayment plan or RAP for all your loans.

• The standard repayment plan offers fixed monthly payments over 10–25 years.
• RAP bases your payments on your income and may offer loan forgiveness after a longer repayment period.

What's changed?

If you do not take out any new loans on or after July 1, 2026, you can continue using your current repayment plan.

Students can also stay in or switch between existing income-driven repayment plans until July 1, 2028.

What does this mean for you?

If you’re currently enrolled in income contingent repayment (ICR), pay as you earn (PAYE), or the save plan, you’ll need to choose a new repayment plan—either the standard repayment plan or the repayment assistance plan (RAP)—by July 1, 2028.

Starting July 1, 2027, economic hardship and unemployment deferments will no longer be available for new loans.

What does this mean for you?

If you borrowed student loans on or before July 1, 2027, you can continue to use these deferment options under the current rules.

However, once those loans are fully paid off, these deferment options will no longer be available for future loans.