The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, introduces significant changes across Direct Student Loans, Direct Parent PLUS, Graduate PLUS, loan limits, proration, FAFSA/eligibility, and institutional accountability. Some provisions include legacy rules for students who began programs before July 1, 2026. The information below provides basic information on the biggest changes.
Important: The final rules for many of these changes have not yet been published but we have a certain level of understanding based on negotiated rulemaking. More details will be shared after the U.S. Department of Education releases the published rules and relevant guidance.
Undergraduate Students
Direct parent plus loan limits
There are new caps on Direct Parent PLUS Loans for borrowers who start loans after July 1, 2026.
| Undergraduate Direct Parent PLUS Loan | |
| Annual Maximum (total amount that can be borrowed per year) | Aggregate Maximum (total amount that can be borrowed across all years) |
| $20,000 per dependent student | $65,000 per dependent student |
(If you started your program before July 1, had a Direct Loan prior to July 1, 2026, and maintain continuous enrollment in the same academic program at the same institution, you may be subject to a legacy provision which would make you exempt from new rules. Learn more about the legacy provision.)
direct loan ADJUSTMENTS FOR LESS THAN FULL-TIME ENROLLMENT
Students enrolled less than full-time will have an adjusted Annual Limit for Direct student loans beginning Fall 2026. Your borrowing limit will be based on your enrolled credit hours compared to full-time enrollment. (UNCG undergraduate full-time enrollment is considered to be 12 credit hours per semester.)
Here’s a simplified example:
- You enroll for 6 credit hours in each semester (fall and spring), totaling 12 credit hours for the year.
- 12 credit hours is equal to 50% of full-time enrollment, which would have been 24 credit hours for the year.
- To calculate your loan limit, you would multiply the full-time loan maximum by 50%, which means you would be eligible for up to $2,750 in loans as a part-time student versus being eligible for $5,500 in loans as a full-time student.
| Pre-OBBBA | OBBBA | |||||
| Fall | Spring | Total | Fall | Spring | Total | |
| Direct Subsidized Loan | $2,750 | $2,750 | $5,500 | $1,375 | $1,375 | $2,750 |
| Direct Unsubsidized Loan | $1,000 | $1,000 | $2,000 | $500 | $500 | $1,000 |
Graduate Students
direct graduate unsubsidized loan limits
There are new, lower limits on borrowing for graduate-level programs vs professional-level programs. All of UNCG’s degree options are considered as “graduate-level” programs by the OBBBA. New annual limits stay the same, but overall aggregate (lifetime) limit will decrease.
| Pre-OBBBA | OBBBA | |||
| Before 7/1/2026 | After 7/1/2026 | |||
| Annual Limit | Aggregate Limit | Annual Limit | Aggregate Limit | |
| Graduate | $20,500 | $138,500 | $20,500 | $100,000 |
Direct Graduate PLUS Loans
Graduate PLUS Loans will no longer be offered after July 1, 2026.
If you started your program before July 1, had a Direct Loan prior to July 1, 2026, and maintain continuous enrollment in the same academic program at the same institution, you may be subject to a legacy provision which would make you exempt from new rules. Learn more about the legacy provision.
Direct Loan ADJUSTMENTS FOR LESS THAN FULL-TIME ENROLLMENT
Students enrolled less than full-time will have an adjusted Annual Limit for Direct student loans beginning Fall 2026. Your borrowing limit will be based on your enrolled credit hours compared to full-time enrollment. (UNCG graduate full-time enrollment is considered to be 9 credit hours per semester.)
Here’s a simplified example:
- You enroll for 6 credit hours in each semester (fall and spring), totaling 12 credit hours for the year.
- 12 credit hours is equal to 67% of full-time enrollment, which would have been 18 credit hours for the year.
- To calculate your loan limit, you would multiply the full-time loan maximum by 67%, which means you would be eligible for up to $13,665 in loans as a part-time student versus being eligible for $20,500 in loans as a full-time student.
| Pre-OBBBA | OBBBA | |||||
| Fall | Spring | Total | Fall | Spring | Total | |
| Direct Unsubsidized Loan | $10,250 | $10,250 | $20,500 | $6,833 | $6,832 | $13,665 |
Professional Students
Students in professional programs have higher borrowing limits for Direct Loans under the new rules. The specific degrees qualifying under professional programs have been defined under OBBBA as those generally at doctoral level, requiring ≥6 academic years, licensure, and that fall within specific CIP codes per the U.S. Department of Education. UNC Greensboro does not currently offer any programs that are classified as professional level programs based on the U.S. Department of Education definitions.
Overall Lifetime Borrowing Cap
Across all loans during a student’s lifetime, there is a Direct Loan borrowing limit of $257,500.
Legacy Provision
In some circumstances, certain continuing students may be subject to borrow under the Pre-OBBBA rules. For Undergraduate students, a legacy provision would allow the parent to borrow Direct Parent PLUS Loans under the old rules in which there were no annual or aggregate limits. For Graduate students, a legacy provision would allow the Graduate student to borrow Direct Unsubsidized and Direct Grad PLUS Loans under the old rules in which the Direct Unsubsidized Loan aggregate loan limits were higher and Direct Grad PLUS Loan is still a viable option.