Higher Ed Financial Aid Updates

A summary of recent federal changes from the One Big Beautiful Bill (OBBB) Act and what UNC students can expect. We’ll keep this page updated as federal guidance is released and institutional policies are finalized.

TIMELINE

Most changes are scheduled to take effect on July 1, 2026 (for the 2026-27 aid year), unless otherwise noted. Our office is reviewing federal guidance as it’s released and will share specifics for UNC students here.

Our commitment to affordability

UNC is committed to access and affordability. We will continue to prioritize needs-based aid and work to minimize disruption to students as the federal program evolves. If you have questions about your situation, we’re here to help.

What UNC students should do now?

1. File the FAFSA/CASFA on time. Apply early each year to maximize consideration for need-based aid. Priority deadline is June 1, 2026.
2. Review your borrowing plan. If you’re a graduate/professional student, consider how new limits may affect your program budget.
3. Understand enrollment impacts. If you plan to study less-than-full-time in 2026-27, be aware of the loan proration rules.
4. Submit UNC scholarship application. 2026-27 application opens November 1. The priority deadline is February 1, 2026, for new freshmen and continuing students, and June 1, 2026, for international and new graduate and transfer students.
5. Talk with us. Our counselors can help you map out costs, aid, and next steps.

Frequently Asked Questions

• When do the new rules start?

  Most provisions are slated to begin with the 2026-27 aid year (effective July 1, 2026) unless otherwise specified by federal guidance.

• Will my current Graduate Plus borrowing stop immediately?

  No, but continuation will depend on your current program and how far along you are when the new rules take effect.

  Students who are enrolled as of June 30, 2026 and have already borrowed Graduate PLUS loans for their current program may continue borrowing only for the remaining expected time to credential.

  The continuation period is the shorter of:

  • Three academic years, or
  • The remaining length of the current program (program length minus completed time as of June 30, 2026).

  Expected Time to Credential: To continue borrowing under this legacy provision after July 1, 2026, the U.S. Department of Education (ED) has stated that the student must remain enrolled in the same academic program, with the same major, at the same school.

  Students who have already exceeded the normal published length of their program as of June 30, 2026, will not be eligible for continued Graduate PLUS borrowing under the legacy provision. The continuation applies only within the program's remaining expected time to credential.

• Which programs count as “professional” for higher loan limits?

  Federal definitions currently include Medicine, Dentistry, Law, Physical Therapy, and Pharmacy. We’re awaiting detailed guidance that may refine or expand this list.

• How does less-than-full-time proration work?

  Beginning in 2026–27, annual loan limits are reduced in proportion to your enrolled credit load below full‑time, rounded to the nearest whole percentage according to a federal schedule.

• What are my options if Graduate PLUS loans are no longer available?

  Graduate students affected by the elimination of Graduate PLUS loans beginning in 2026–27 can explore several alternatives:

  • Maximize Federal Direct Unsubsidized Loans: Borrow up to the annual and lifetime limits set for your graduate or professional program.
  • UNC and Colorado institutional aid: Review available graduate scholarships, assistantships, and departmental awards.
  • Private or alternative loans: Consider private educational loans through credit-based lenders. UNC recommends students compare lenders through ELMSelect and consult with Financial Aid before applying.
  • Payment plans: UNC offers monthly payment plan options through the Bursar’s Office to help spread costs over the term.
  • Employer or professional funding: Some employers and organizations offer tuition assistance or reimbursement programs.
• How will Parent PLUS loan limits affect families?

  Beginning in the 2026–27 aid year, Parent PLUS loans will include annual and lifetime borrowing limits—$20,000 per academic year and $65,000 total per parent, per dependent student. Families who rely on Parent PLUS loans can plan ahead with these options:

  • Use federal limits strategically: Parents can split annual borrowing between multiple semesters or years to stay within limits.
  • Explore student borrowing first: Dependent students may qualify for Federal Direct Subsidized or Unsubsidized Loans, which have lower interest rates.
  • Private parent or student loans: Private lenders may offer loans to help fill the gap—compare rates and terms carefully.
  • UNC payment plan: The Bursar’s Office provides installment plans that can reduce or replace the need for additional borrowing.

  Parents currently holding PLUS loans will not lose access to their existing loans; these new limits apply to new borrowing starting in 2026–27.

For a full detailed overview of enacted federal financial changes, review the resource, compiled by the National Association of Student Financial Aid Administrators (NASFAA). This document outlines the major provisions of the recently passed legislation guiding updates to federal aid policies.

Disclaimer: This page summarizes federal updates for convenience and may be updated as the U.S. Department of Education releases new guidance. For official federal information, refer to federal sources. UNC will update campus-specific impacts as details are finalized.