What You Need to Know
Beginning July 1, 2026, changes to federal student aid regulations will affect how your federal student loans are calculated and how much you may be eligible to borrow.
Key changes include:
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Federal loan eligibility will be based on a student’s enrollment level.
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Students enrolled less than full-time will generally qualify for a reduced annual loan amount.
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Graduate students are subject to new lifetime borrowing limits.
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Graduate PLUS Loans will no longer be available to new borrowers.
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Parent PLUS loans will be limited to $20,000 per student, per academic year.
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Parent PLUS loan borrowers' lifetime aggregate limit will be $65,000 per student.
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Existing borrowers may qualify for temporary grandfathered provisions through June 30, 2029, or until completion of their current program, whichever occurs first.
Baker College is committed to helping you understand these changes so you can make informed decisions about financing your education.
How Enrollment Affects Your Loan Amount
Federal student loan eligibility is based on the percentage of a full-time course load you are enrolled in during the academic year.
This means if you enroll in fewer credits, you may qualify for a lower annual loan amount than a full-time student.
Baker College Full-Time Enrollment Standards
If you are enrolled at less than full-time, your loan amount will be prorated based on your enrollment level.
Example
If you are an undergraduate student enrolled in 12 credits during the academic year, you are enrolled at 50% of a full-time course load.
If your annual federal loan limit is $5,500, your annual loan eligibility would be approximately $2,750.
Do You Need to Do Anything?
No. Your federal loan eligibility is automatically calculated based on your registered credits.
However, changes to your enrollment may affect your aid eligibility.
Impact of Withdrawing, Dropping, or Failing a Course
Your federal loan eligibility is now tied directly to your registered credits. If you drop a class, withdraw, or fail a course where you stopped attending, your loan amount will be recalculated and reduced in direct proportion to your new enrollment level. This change is automatic and may result in a reduction or loss of future loan eligibility, potentially creating an unexpected balance on your account.
If you are considering changes to your schedule, we encourage you to contact the Financial Aid Office to understand how those changes may affect your funding.
How Much Can I Borrow?
The examples below compare annual loan eligibility for full-time and half-time students.
Enrollment Assumptions
- Full-Time = 24 credits per academic year (12 credits per semester)
- Half-Time = 12 credits per academic year (6 credits per semester)
Federal Loan Comparison
| Student Type & Grade Level |
Full-Time Annual Loan |
Half-Time Annual Loan |
Full-Time Loan per Semester (12 credits) |
Half-Time Loan Per Semester (6 credits) |
| 1st Year (Dependent) |
$5,500 |
$2,750 |
$2,750 |
$1,375 |
| 1st Year (Independent) |
$9,500 |
$4,750 |
$4,750 |
$2,375 |
| 2nd Year (Dependent) |
$6,500 |
$3,250 |
$3,250 |
$1,625 |
| 2nd Year (Independent) |
$10,500 |
$5,250 |
$5,250 |
$2,625 |
| 3rd Year+ (Dependent) |
$7,500 |
$3,750 |
$3,750 |
$1,875 |
| 3rd Year+ (Independent) |
$12,500 |
$6,250 |
$6,250 |
$3,125 |
| Graduate Student |
$20,500* |
$13,735* |
$10,250 |
$6,765 |
*Note: If you’re a graduate student taking 12 credits during the academic year, that equals 67% of full-time status (12 ÷ 18 = 67%), so your annual loan limit is adjusted accordingly.
Minimum Enrollment Requirement
To receive federal student loans, you must be enrolled at least half-time each semester:
Semester Loan Limits
Federal loan disbursements generally cannot exceed 50% of a student's annual loan eligibility in a single semester.
New Borrowing Limits Beginning July 1, 2026
Federal law establishes new lifetime and annual caps for federal loan programs. How these limits apply to you depends on whether you are a New Borrower or a Legacy Borrower.
The Legacy "Grandfather" Rule: If you or your parents borrowed a Federal Direct Loan for your current program before July 1, 2026, you can continue using the old borrowing rules (including Graduate PLUS loans and higher caps) for a duration determined by your specific program's length, provided you remain continuously enrolled. Under these regulations, grandfathered eligibility is strictly limited to a total of two academic years for Master's programs and three academic years for Doctorate programs, regardless of whether your enrollment status is full-time or part-time. This access to previous borrowing limits concludes immediately upon your graduation or once you reach your program's respective year limit, whichever occurs first.
New Borrowing Provisions
For new programs started after July 1, 2026, or for new borrowers, the following limits apply:
Graduate Student Borrowing Limits
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Graduate Unsubsidized Loans: Maximum of $20,500 per year with a lifetime cap of $100,000 (excluding loans borrowed as an undergraduate student).
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Total Federal Student Loans: A maximum lifetime borrowing limit of $257,500 (combining all undergraduate and graduate loans).
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Graduate PLUS Loans: Unless you qualify under the Legacy "Grandfather" Rule listed above, you are no longer eligible for Graduate PLUS loans.
Parent PLUS Loan Limits
Parent PLUS Loans remain available to eligible parents of dependent undergraduate students. However, new borrowing limits now apply regardless of the student's cost of attendance:
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Annual Parent PLUS Limit: Up to $20,000 per student, per academic year.
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Aggregate Parent PLUS Limit: Up to $65,000 per student across all academic years.
Note: Parent PLUS Loans are not subject to enrollment-based proration. However, students must maintain at least half-time enrollment and meet all other federal eligibility requirements for Parent PLUS Loans to be disbursed.
Questions?
The Financial Aid Office is available to help you understand how these changes may affect your federal student aid eligibility.
You can contact the financial aid office at financialaid@baker.edu or 989-729-3911.
Official Information
This page summarizes current federal student aid requirements as they apply to Baker College students.
For the most up-to-date and official information about federal student aid, visit studentaid.gov.