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Federal Student Loan Update

This page is designed to help you stay up-to-date with the changes to the federal student loan programs scheduled to take effect as of July 1, 2026. Per the One Big Beautiful Bill Act (OBBB) passed by Congress on July 3, 2025, and signed into law on July 4, 2025, several provisions will result in changes and discontinuation of certain federal loan programs.

Please know that our financial aid counseling staff in the Office of Student Financial Services is always here to help you understand your financial aid options and navigate this process. Our goal is to help every student find a manageable pathway to earning an RWU degree.

Here are the relevant changes expected to take effect July 1, 2026, as well as some of our recommended alternative options. We will update this page as new information becomes available. 

Please reach out to us directly at finaid@rwu.edu for more personalized recommendations (we are happy to meet with you!):

Update: May 2026

Pointers for new students and families enrolling this fall 2026

Now is a good time to begin reviewing your financing options. If you are considering student loans, you may choose federal direct loans (for undergads and grads), Parent PLUS loans (for undergrads), and/or private loans. You may choose a combination of all three. 

A note about private loans: Some of our preferred lenders have adjusted their criteria to make more students and families eligible. Even if you have not qualified in the past, this option may now be available to you. Apply as soon as possible to determine your eligibility.

A note about Parent PLUS loans: With the new caps on these loans, each student has access to $65,000 for the total duration of their undergraduate degree. Most degree programs are four years. If you plan on taking the maximum amount of this loan, you may choose one of two options:

  • Option 1: spread the loan out over four years: Even though you will have access to up to $20,000, take $16,250 out per year so you will have a consistent amount all four years if you anticipate needing it.
  • Option 2: take the maximum for the first three years with an alternative plan for year four: Take the $20,000 maximum PLUS loan for years one through three, knowing you will have $5,000 left for year four. Prepare an alternate plan for year four, which could include saving money, improving credit to apply for a private loan, or securing outside help. 

Reach out to your financial aid counselor for guidance or questions! Phone: 401-254-3100 or 1-800-458-7144 or Email: finaid@rwu.edu

Information as of January 2026

Changes for Undergraduate Students

  • Parent PLUS loans will remain available, but will have new annual and lifetime caps.
    • For first-time Parent PLUS loans initiated July 1, 2026 or later, these loans will now be capped at $20,000 per year per student, and $65,000 lifetime per student.
    • For Existing borrowers (who have previously received a Parent PLUS Loan), borrowers  may be eligible to continue borrowing under current limits (up to the total out-of-pocket cost) for up to three academic years or the remainder of their program, whichever is less. 

What to Consider

Private loans may be an alternative. Review the rates, fees, and parameters of private loans and use our Preferred Lender List for guidance. These preferred lenders have been vetted by our professionals to ensure that they offer the best service and benefits to borrowers.

Outside scholarships can help supplement your RWU and federal financial aid. RI Scholarships is an excellent source to find opportunities. Apply early and often!

Changes for Graduate Students

  • The Graduate PLUS Loan is being phased out. As of July 1, 2026 it will no longer be available for new borrowers. 

Existing Graduate PLUS borrowers will remain eligible to continue borrowing PLUS loans for up to three years or the remainder of their program. 

  • Graduate Direct Unsubsidized loans have new limits and categorization. Most graduate students may be eligible for up to $20,500 per year in Direct Unsubsidized Loans, which is the same as the current annual limit. However, the aggregate limit will change to $100,000 (from its current $138,500). Existing RWU borrowers may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their program, whichever is less. 

Students enrolled in newly deemed “professional programs” will have a $50,000 per year borrowing limit with a $200,000 lifetime limit. For RWU, this will only include our Juris Doctor (JD) programs offered through the School of Law.

What to Consider

Private loans may be a way to supplement existing financial aid, if necessary. Review the rates, fees, and parameters of private loans and use our Preferred Lender List for guidance. These lenders have been vetted by our professionals to ensure that they offer the best service and benefits to borrowers.

Changes relevant for all students

  • Under new federal regulations, starting with the 2026-2027 academic year, annual loan amounts must be adjusted based on the number of credits you’re enrolled in each semester. This process is called the Schedule of Reductions (SOR). In practice, this means your federal loan eligibility may be reduced if you’re enrolled less than full-time.
  • Several changes were made to loan repayment options, including the creation of a new standard repayment plan and a new income-based repayment plan (RAP). Several existing plans will be eliminated on July 1, 2028. For more information, please visit studentaid.gov.

Here are a few important things to keep in mind 

  • You must maintain at least half-time enrollment to remain eligible for Federal Direct Loans.
  • Loan eligibility may be adjusted if you add, drop, or withdraw from courses.
  • Changes in enrollment may reduce loan funds you’ve already been awarded or anticipated.
  • If loan funds have already been disbursed and your enrollment status changes, a portion of your loan may need to be returned to the U.S. Department of Education, which could create a balance due on your student account.

Because these changes can have a real financial impact, we strongly encourage you to reach out to our office before adjusting your course schedule, so we can walk through how it might affect your aid.

Resources 

  • Tips for improving your credit score from the Consumer Financial Protection Bureau. If you are considering state or private loans as an alternative to federal PLUS loans, please note that any borrower or co-signer's credit scores will factor into their approval process.
  • Preferred Lender List. RWU’s list of lenders that have been vetted for service and benefits.
  • Information about federal student loans from the Department of Education’s Federal Student Aid site. This website explains types of federal loans, eligibility, and the application process.
  • RWU Net Price Calculator. A tool to get an estimate of your personal net cost, factoring in financial aid for which you may qualify.
  • Helpful videos to explain financial aid, loans, and affording college.

Contact

Financial Aid Office

Phone: 401-254-3100 or 1-800-458-7144
Fax: 401-254-3356
Email: finaid@rwu.edu

Admission Offices

Undergraduate Admission

Phone: 401-254-3500 
Email: admit@rwu.edu

Graduate Admission

Phone: 401-254-6200
Toll Free: 888-674-8479
Fax: 401-254-3557
Email: gradadmit@rwu.edu

School of Law Admission

Phone: 401-254-4555
Email: lawadmissions@rwu.edu

Extension School Admission

Phone: 401-254-3838
Email: ext@rwu.edu