Federal july 1 student loan changes will require full-time enrollment for students to receive the full amount of federal loans starting July 1, with part-time borrowers set to receive less. Jennifer Helgeson of MSU Denver's Office of Financial Aid and Scholarships said the shift will affect students starting in fall 2026.
Parents will also face new borrowing limits, while Graduate PLUS loans will disappear for new borrowers after July 1. Financial aid officials said students and families should start preparing now as the U.S. Department of Education guidance continues to evolve.
Jennifer Helgeson on part-time borrowing
Helgeson said part-time students will see smaller loan amounts. “If they're taking part-time classes, there will be a reduction in the loans they're able to receive,” she said.
She also said enrollment changes can quickly alter a student's aid package. “Even small changes to enrollment can have ripple effects,” Helgeson said.
Parent PLUS and graduate caps
Under the new law, Parent PLUS loans will be limited to $20,000 annually per student and $65,000 over a lifetime. Graduate PLUS loans will no longer be available to new borrowers after July 1, and new limits will include a $100,000 aggregate cap for many graduate students.
Those limits arrive at the same time students will need full-time enrollment to receive the full federal loan amount. Dropping classes or shifting between full- and part-time status could directly affect eligibility.
Clarissa Ojeda at MSU Denver
MSU Denver student Clarissa Ojeda said the changes could make basic costs harder to cover. “I won't be able to get any type of income, but I'll need to pay for gas, housing, so I might need to take out loans for that,” she said.
Ojeda said the tighter borrowing rules could hit students who already depend on loans for essentials. “It's kind of disheartening because a lot of students rely on loans for rent, books, and without additional ones they might need, it's going to be really hard for them to live and go to school,” she said.
Families and students preparing for fall 2026 will need to watch enrollment status closely, because the difference between full-time and part-time study now changes how much federal money they can borrow.
