Changes to 2026-2027 Federal Student Loans

OBBBA uses a "fractional" math formula. Your annual loan limit is multiplied by the percentage of a full-time load you are taking.

• Undergraduate Example: If full-time is 24 credits per year and you take 12 credits (half-time), you are eligible for 50% of your annual limit.
• Graduate/Legacy Professional Example: If your program considers 18 credits a full year and you take 9, you are eligible for 50% of the $20,500 limit ($10,250).
• New Professional Example: If your program considers 18 credits a full year and you take 9, you are eligible for 50% of the $50,000 limit ($25,000).

YES, even though you received a disbursement before July 1, 2026 for your current program, and you fall under the Legacy Provision, you are subject to this rule.

Graduate PLUS Loans will be phased out starting July 1, 2026, for new borrowers. Existing borrowers may continue to borrow under the generally higher limits for the duration of their degree, subject to some limitations. Please speak to your financial aid office with any questions on eligibility.

• Students must have borrowed a federal Direct Loan (Subsidized, Unsubsidized, or PLUS) in their current program before July 1, 2026.
• The eligibility period, while up to three years or the completion of your degree (whichever is sooner), is also limited by the minimum length of your program minus the time you have been enrolled.
• We do not yet have explicit direction from the Department of Education on how grandfathering applies to dual-degree programs. Updates will be posted as information becomes available.

Under OBBBA, the overall lifetime borrowing limit for federal student loans, excluding Parent PLUS loans, is $257,500. This applies to students starting a new program on or after July 1, 2026.

Only if the summer class is part of your program of study and your coursework/enrollment begins before July 1, 2026.

If you haven't borrowed under the Federal Direct Loan Program for your current program, and you anticipate needing any federal loans above the new caps in future academic years, you may wish to consider whether borrowing before July 1, 2026, aligns with your academic and financial plans. This allows you to access current borrowing limits rather than the new caps.

Carefully consider whether you expect to need to borrow beyond the caps that take effect on July 1, 2026, while completing your current degree. If you decide that you do or will and wish to preserve current federal borrowing limits, undertake the following by April 1, 2026:

• Submit the 2025–2026 FAFSA.
• Complete Loan Entrance Counseling.
• Sign the Master Promissory Note for Direct Unsubsidized Loans.
• Accept Direct Unsubsidized Loan funding via your Student NetPartner portal.

Your financial aid office can assist with assessing your needs.

There are many private lenders, and each may offer different options. Consider:

• Confirming eligibility with lenders
• Borrowing limits (your school’s COA minus aid)
• Cosigner requirements and release options
• Interest rates: fixed vs. variable
• Borrower benefits, such as autopay reductions
• Fees (origination, late payment, returned check)
• Repayment terms, including grace, deferment, and forbearance

Federal loans have attributes not present in private loans and are generally easier to obtain. We recommend using federal loans first, and then considering private loans if additional borrowing is needed.

Ideally, apply after committing to a school and receiving your financial aid package so that you may accurately assess your financial needs and the amount you need to borrow.

For domestic students in academic year 2026-27 and in light of the changes from the OBBBA, we are reviewing the domestic preferred lender list and understand lenders are broadening their approaches for next academic year. We expect your application will be the most successful beginning in late April and recommend that you do not apply yet for private loans. If you choose to apply now, you may wish to check with your lender in late April to see if terms have changed. Please check this site for updates.

Reviewing your financial aid package first helps minimize borrowing needs by accounting for scholarships, grants, and work-study. This strategic approach reduces potential debt.

Yes, but because tuition and fees have due dates, you should align your application timing with your school’s deadlines and academic start dates to ensure timely availability of funds.

Use online loan calculators and pre-qualification tools from various lenders. The Free Application for Federal Student Aid (FAFSA) can also provide insight into federal loan options.

Student loans are unsecured, which may result in higher rates than loans with collateral. Rates reflect your credit score, cosigner status, repayment term, and loan type. Many borrowers work to maintain or improve their credit profile while in school and refinance after graduating and obtaining verifiable employment.

Lenders use a variety of factors that include:

• Credit score
• The existence of a cosigner and that person’s credit
• Repayment length
• Broader economic conditions

If you are denied a private loan, please contact your financial aid office for more information on available resources. 

A cosigner has a secondary legal responsibility if you default on the loan. Having a cosigner often results in a lower interest rate. Many lenders offer cosigner release after a borrower meets specific criteria (e.g., a certain number of timely payments, creditworthiness). Details vary by lender.

Columbia University offers a list of lenders chosen for cost, benefits, and customer service. Students are free to select any lender and are encouraged to compare rates and terms. This list should not be considered exhaustive.

Due to the changes in federal loan caps that take effect July 1, 2026, Columbia University is currently reviewing its preferred lender list. We understand that lenders are adjusting their products in response to increased borrowing needs. We will share additional details after May 1, 2026.