Federal Student Aid Changes

The U.S. Department of Education is expected to release more guidance on the implementation of these changes. The Spelman Financial Aid Office will update its page with the latest information as it becomes available.

• The net worth of certain family farms and small businesses will be excluded from the Student Aid Index (SAI) calculation.
• Students with an SAI that is equal to or greater than twice the amount of the maximum Pell Grant award will no longer be eligible for the Pell Grant during that academic year.

Several changes will affect Pell Grant eligibility:

• Students with an SAI that is equal to or greater than twice the maximum Pell Grant award will no longer be eligible for the Pell Grant during that academic year.
• Students who receive scholarships or grants that exceed their total Cost of Attendance (COA) will lose their Pell Grant eligibility for that academic year.
• Foreign income will now be included in the adjusted gross income (AGI) when determining Pell Grant eligibility.

Direct student loan disbursements will be prorated for students who are enrolled less than full-time.

The federal government distinguishes between two types of graduate students for the purpose of Direct Unsubsidized Loan limits:

• Professional Student: A student enrolled in a graduate-level program that leads to a professional degree required to practice in a specific, often licensed, field (e.g., Law (J.D.), Medicine (M.D.), Dentistry (D.D.S.), Pharmacy (Pharm.D.)). These students are subject to higher borrowing limits.
• Non-Professional Student (or Graduate Student): A student enrolled in a standard graduate-level program that awards a Master's (e.g., M.A., M.B.A., M.S.) or a traditional Doctoral degree (e.g., Ph.D.). These students are subject to lower borrowing limits.

The limits vary based on the program:

• Non-professional students: Borrowing limits remain $20,500 annually, with a maximum of $100,000.
• Professional students: Borrowing limits will be $50,000 annually, with a maximum of $200,000.
• Aggregate Limits: The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students and does not include amounts borrowed as an undergraduate.
• Lifetime Limit: Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and professional school.
• Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for three (3) academic years or the remainder of their expected time to credential, whichever is less. However, if you are a current borrower and plan to enroll into a new credential program (graduate or professional) after July 1, 2026, you are subject to the new borrowing limits for graduate and professional students.

Direct student loan offers will be prorated for graduate/professional students who are enrolled less than full-time.

Students taking out their first federal loan on or after July 1, 2026, will only have two repayment plans available: the new Standard Repayment Plan and the new Repayment Assistance Plan (RAP).

Existing income-driven repayment plans like SAVE, PAYE, and ICR will be phased out by July 1, 2028. Current borrowers will need to transition to one of the new plans or the amended Income-Based Repayment (IBR) plan.