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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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 Credit Standards:
- St. Francis Law students: 30 credits per academic year (10 credits per quarter)
If you are enrolled at less than full-time, your loan amount will be prorated based on your enrollment level.
Loan Proration Formula:
Step 1: Credits You Take Full-Time Credits 100% Your Enrollment Percentage
Step 2: Your Enrollment Percentage Annual Loan Limit Your Loan Eligibility
Example:
If you enroll in 24 credits for the academic year:
24 30 100% 80% enrollment
If your annual federal loan limit is $20,500:
80% $20,500 $16,400 Annual Loan Eligibility ($5,467 per quarter)
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?
Below is an example of how your annual federal loan eligibility changes based on the number of credits you take during the academic year.
Federal Loan Comparison
| Academic Year Enrollment |
Full-Time Annual Loan Limit |
Prorated Enrollment Percentage |
Adjusted Annual Loan Eligibility |
Estimated Loan Per Quarter |
| 8 credits for 1 quarter |
$20,500 |
27% |
$5,535 |
$5,535 |
| 16 credits for 2 quarters |
$20,500 |
53% |
$10,865 |
$5,433 |
| 24 credits for 3 quarters |
$20,500 |
80% |
$16,400 |
$5,467 |
| 32 credits for 4 quarters |
$20,500 |
100% |
$20,500 |
$5,125 |
- To qualify for a loan, you must attend at least half-time each semester (6 credits)
- Your loan cannot exceed 50% of the annual limit during any 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.
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 reflects Baker College’s current understanding of regulations issued by the U.S. Department of Education. Federal guidance may continue to evolve.
For the most up-to-date and official information about federal student aid, visit studentaid.gov.