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Changes to Title IV Funding Provision – 1 July 2026

During the Budget Reconciliation process in July 2025 President Trump signed the One Big Beautiful Bill Act (OBBBA – The Act) legislation which sets out a series of changes to the existing Title IV Federal Direct Loan (federal loans) provision offered to eligible US students, regardless of where they choose to study.

The information on this page covers the changes set out in The Act that are scheduled to be implemented from 1 July 2026.

If you are considering applying for federal loans for a course that begins on or after 1 July 2026 then the changes covered on this page will apply to the federal loans you will be able to access towards the Cost of Attendance.

If you are currently in receipt of federal loans for a programme that will continue beyond 1 July 2026, then you need to be aware of the changes set out on this page for future study. However, you should pay particular attention to the section related to the ‘grandfathering’ of the existing funding provisions.

Establishment of Loan Limits and Termination of Graduate PLUS Loans

The changes to loan limits and the types of loans available are set out in this section.

Federal Direct Loan limits

  • The Act imposes annual and aggregate limits on Federal Direct Unsubsidized Loans for graduate and professional students. The aggregate limits for graduate loans do not include undergraduate loan debt.
    • Graduate study: $20,500 annual limit, $100,000 lifetime limit
    • Professional study: $50,000 annual limit, $200,000 lifetime limit
  • Starting 1 July 2026, students may not borrow more than $257,500 in total federal student loans, regardless of if they have repaid previous loan debt.

PLUS Loans

  • Beginning 1 July 2026, Parent PLUS Loans will be capped at $20,000 annually with an aggregate limit of $65,000 per dependent student.
  • Beginning 1 July 2026, Graduate PLUS Loans will no longer be available to new borrowers.

Other provisions

  • The amount of the loan a student can borrow will be based on their enrolment percentage to full-time enrolment.
    • For example, if you are only studying 60 of a possible 120 credits in an academic year then you will only be able to borrow 50% of the maximum loan entitlement as set out in the Cost of Attendance.
  • Institutions will have the authority to set programmatic limits below current or proposed annual limits that would be applied to all students in that program. 
    • Please note, the University of Leeds does not intend on setting such limits.
  • Existing students would be grandfathered for no more than three years (see Grandfathering Clause section).

Grandfathering Clause for Existing Borrowers

Interim Exception for Certain Students

Students who are currently enrolled in a programme and have received a federal loan on or before 30 June 2026, will be exempt from the new loan caps and PLUS Loan elimination for a limited period. The exemption lasts for the lesser of:

  • three academic years, or
  • the difference between the total length of the program the borrower is enrolled in and the period of the program the borrower has already completed. This is calculated based on the program’s length and the student’s progress to date.

If your programme of study has an end date that is beyond the next three academic years, any federal loans you take out from that point will be subject to the new loan caps set out in The Act.

If, during the next three years and before the original end date of your programme, you suspend study for longer than 180 days (and are therefore withdrawn from the loan programme) the exemption will lapse, and your loans will be subject to the new loan caps set out in The Act.

Cost of Attendance and Borrowing Limits

The Cost of Attendance to study at Leeds is set out on our website. Based on the changes to the types of loans and the annual loan limits you may not be able to borrow Title IV Direct Loans to cover the total cost to study. You can find details of alternative loan types on our About USA Funding page.

Repayment

The One Big Beautiful Bill aims to combine eligible charges and repayment amounts into a single monthly statement. This change is intended to provide one consolidated view of what is owed, including due dates, payment options, and any applicable adjustments. 

For more information on the changes to repayments please see the Student Aid website.

For further information please email the US Loans Administration Team at sesuslns@leeds.ac.uk.

Fees and funding