Important Federal Student Aid Changes
Last Updated 2-5-2026
What Graduate Students Should Know
Graduate education at Valparaiso University is designed to be a clear, supported, and manageable investment in your future. As federal graduate loan policies evolve, Valpo remains committed to helping prospective, admitted, and current graduate students understand their options and plan ahead with confidence.
Beginning July 1, 2026, changes to federal graduate student loan programs will impact how some students fund their education. The most important steps you can take? Start planning early, and connect with Valpo’s Office of Financial Aid for support every step of the way.
Federal Loan Changes for Graduate Students
Graduate PLUS Loans
- Grad PLUS Loans will be eliminated for new borrowers starting July 1, 2026.
- Students who receive their first Graduate PLUS loan disbursement by June 30, 2026, will retain access to current borrowing options until program completion or until June 30, 2029, whichever comes first.
- You can also continue to borrow up to $20,500 of Direct Unsubsidized loans while maintaining your full eligibility of Graduate PLUS Loans.
- You can only borrow for your current program. If you switch programs, you will no longer be eligible.
New Loan Limits for New Borrowers (Starting July 1, 2026)
If you have not borrowed a Direct Unsubsidized Loan for your current graduate program before July 1, 2026, the following limits will apply:
- Graduate students:
$20,500 per year | $100,000 lifetime - Combined graduate and professional students:
$200,000 aggregate - Lifetime federal student loan limit (including undergraduate loans):
$257,500
Students enrolled less than full-time will also see prorated annual loan limits in direct proportion to their enrollment status.
This information reflects the most current federal guidance available and is subject to change. We encourage you to check this page regularly for updates.
Admission alone doesn’t guarantee access to current loan options. To be considered “grandfathered in” under existing Grad PLUS rules, you must have an eligible federal graduate loan disbursed on or before June 30, 2026.
If you’re considering starting a program in summer 2026, this earlier timeline may offer greater flexibility under current federal loan policies. Our financial aid team can help you assess whether starting earlier makes sense for your situation.
Valpo’s graduate programs offer strong long-term value and exceptional career outcomes, especially in high-demand fields. We support our graduate students through multiple funding pathways to help you build a plan that fits your goals and circumstances.
Federal Student Loans
Valpo participates in the Direct Lending program, allowing eligible students to access Direct Unsubsidized Loans. Federal loans are credited directly to your student account after other aid is applied. Students must be enrolled at least half-time and complete required steps such as entrance counseling and a Master Promissory Note.
Merit Scholarships
Graduate merit scholarships are awarded to full-time and part-time students who demonstrate strong academic achievement and potential:
- Awards range from 10% to 20% of tuition.
- Merit scholarship percentage is determined by your admission GPA and program of enrollment.
- Scholarships are available for the length of the program.
- If awarded, your scholarship will appear in your admission letter after applying to Valpo
Back To Valpo Scholarship
Valpo alumni pursuing their first master’s degree at the University may qualify for the Back To Valpo, which provides:
- 30% tuition scholarship toward eligible master’s programs
- Available to recent Valpo bachelor’s degree graduates
- Applies to graduate-level coursework (does not cover undergraduate prerequisites)
Note: The Back To Valpo scholarship cannot be stacked on other institutional awards (such as a merit scholarship, athletic scholarship, tuition remission, or other University discounts).
Excludes the following programs: master of science in physician assistant (MSPA), post-professional doctor of occupational therapy (DrOT), online master of public health (MPH), online master of healthcare administration (MHA), and graduate certificates.
Tuition Discounts Through EdAssist
Valpo partners with EdAssist by Bright Horizons to offer a 10% tuition discount for employees of EdAssist-affiliated organizations.
Eligible programs include:
- RN-BSN
- BSN-DNP
- MBA
Additional Funding Options
- Graduate teaching and research assistantships (contact your graduate program director for information)
- Employer tuition benefits and external awards
- Private education loans (when needed, with guidance from our team)
Graduate Programs
At Valpo, our team is here to guide you and help you understand graduate funding that’s available to you. Student Financial Services, which includes the Office of Financial Aid and the Office of Student Accounts, work closely with graduate students to explain costs, funding options, and next steps in a clear, approachable way.
If you have questions about federal loan changes, funding timelines, or building a personalized plan, we encourage you to email, call, or schedule an appointment with our team:
- Admitted or current students: Book a financial aid appointment here. This allows for you to choose a Zoom, Google Chat, phone call, or in-person meeting. You can also schedule an in-person meeting to assist with filing the FAFSA. All meetings will be held during regular business hours.
- Prospective students: Please work with our graduate admission team regarding any questions you may have.
Take the Next Step with Confidence
Valparaiso University is committed to helping you navigate graduate funding with clarity, care, and confidence. With thoughtful planning and the right support, a Valpo graduate degree can be a powerful and manageable investment in your future.
To learn more about repayment options for new and current borrowers, as well as loan rehabilitation, click the Learn More link below to jump down to the Additional Information section of this page.
What federal loans are available for graduate school?
Graduate students may be eligible to receive Direct Unsubsidized Loans and Graduate PLUS Loans (or Direct PLUS Loans). These two types of federal student loans do not require demonstrating financial need.
Graduate PLUS Loans will be eliminated for new borrowers starting July 1, 2026. Students who receive their first Graduate PLUS loan disbursement by June 30, 2026, will retain access to current borrowing options until program completion or until June 30, 2029, whichever comes first.
Can graduate students get financial aid through FAFSA?
To apply for federal student loans, including Graduate PLUS Loans and Direct Unsubsidized Loans, the first step for graduate students is to submit the Free Application for Federal Student Aid (FAFSA) form. For more helpful information about completing the FAFSA form, visit studentaid.gov.
What is a Grad PLUS Loan (also called a Federal Direct PLUS or Direct PLUS Loan)?
Grad PLUS Loans are one of two types of federal loans that are currently available to eligible graduate and professional students. These loans will be eliminated for new borrowers starting July 1, 2026.
Students who receive their first Graduate PLUS loan disbursement by June 30, 2026, will retain access to current borrowing options until program completion or until June 30, 2029, whichever comes first.
How much can I borrow with a Grad PLUS Loan?
For Grad PLUS Loans, the maximum amount that eligible graduate and professional students can borrow is the cost of attendance for their program, after any other financial assistance received. For more information from Federal Student Aid, visit here.
Grad PLUS Loans will be eliminated for new borrowers starting July 1, 2026. Students who receive their first Graduate PLUS loan disbursement by June 30, 2026, will retain access to current borrowing options until program completion or until June 30, 2029, whichever comes first.
How and when do I apply for a Grad PLUS Loan?
If you’re considering starting a graduate program in summer 2026, we recommend applying for a Grad PLUS Loan as early as possible. For eligible graduate students to receive a Grad PLUS Loan, they must have an eligible federal graduate loan disbursed on or before June 30, 2026.
Grad PLUS Loans will be eliminated for new borrowers starting July 1, 2026.
Do Grad PLUS Loans qualify for Public Service Loan Forgiveness (PSLF)?
Yes, both Grad PLUS Loans and Direct Unsubsidized Loans can qualify for the PSLF program. If you’re employed by a government or not-for-profit organization, you may be eligible for PSLF.
What is a federal direct unsubsidized loan, and how is it different from a subsidized loan?
- Federal direct unsubsidized loans are available to eligible graduate and undergraduate students, without regard to financial need. Interest accrues during enrollment.
- Federal direct subsidized loans are only available to eligible undergraduate students and are based on financial need.
Which degree programs are considered “professional” programs?
Currently, Valpo does not have any programs that meet the U.S. Department of Education’s definition of professional programs.
Is the Physician Assistant (PA) program considered a professional program?
No. The PA program currently does not fall under the federal guidelines for a professional program.
Frequently Asked Questions
What Undergraduate Students Should Know
An undergraduate education at Valparaiso University is a valuable investment in your future, and we’re here to support you every step of the way, helping you understand and navigate financial aid resources.
As federal student loan and grant policies for undergraduate students are changing, Valpo’s Office of Financial Aid is here to provide you and your family with clear information and personalized guidance so you can plan ahead and stay focused on your academic goals and long-term success.
Federal Loan Changes for Undergraduate Students
This program allows parents to borrow federal loans for their dependent undergraduate students. Beginning July 1, 2026, this program will have new loan limits for NEW Parent PLUS Loan borrowers.
Effective July 1, 2026, parents of undergraduate students will be eligible to borrow up to $20,000 per year per student up to an aggregate of $65,000 per student.
Some exceptions apply:
- If students have already received Parent PLUS Loans, the parent can continue borrowing under the current borrowing limits (up to the full cost of attendance) until June 30, 2029, or until the student completes their current program, whichever comes first.
- If the student changes program or major, the new loan limits apply to future PLUS loans borrowed.
- Parent PLUS Loans borrowed after July 1, 2026 are only eligible for the Standard Repayment Plan (more information under “Repayment Plans” below).
What do I need to do?
If you have not yet borrowed for your current program and think you may need Parent PLUS Loans in the future, borrow a small amount by May 1, 2026. This will give time for the Office of Financial Aid to process and originate the loan. This way, your loan will be disbursed by the July 1, 2026 deadline. Also, make sure your contact information is up to date on studentaid.gov. This way, your loan service provider will be able to contact you if needed.
Students enrolled less than full-time will have a prorated annual loan limit in direct proportion to their enrollment status. The federal loan limits for full-time undergraduate students remain unchanged.
Students who get the minimum or maximum Pell Grant will be affected by these new rules. Pell Grants will go to the students with the most financial need, with amounts ranging between $740 and $7,395. Students with the minimum or maximum Pell Grant should check their Student Aid Index (SAI) and total aid to see if they’re still eligible. The following new rules will apply:
- Anyone whose SAI is more than twice the amount of the maximum Pell award will be ineligible for the grant. For the 2026-2027 academic year, this means that students whose SAI is more than twice $7,395 ($14,790) will not be eligible for any Pell awards (this limit does not apply to those receiving the Pell Grant under the Special Rule).
- Foreign-earned income will be included in the annual gross income used to calculate eligibility for the Pell Grant.
- Any student who receives scholarships that meet or exceed their Cost of Attendance (COA) may lose or see an adjustment to their Pell Grant eligibility.
Beginning with the 2026-2027 award year:
- Students with a Student Aid Index (SAI) more than twice the maximum Pell Grant limit will no longer be eligible for the Pell Grant.
- The FAFSA calculation will include exemptions for the net worth of family farms on which a family resides, family-owned and controlled fishing businesses, and family-owned and controlled small businesses with 100 or fewer full-time or full-time-equivalent employees.
- Foreign-earned income will be included in the annual gross income used to calculate eligibility for the Pell Grant.
- Any student who receives scholarships that meet or exceed their Cost of Attendance (COA) may lose or see an adjustment to their Pell Grant eligibility.
Graduate Programs
To learn more about repayment options for new and current borrowers, as well as loan rehabilitation, click the Learn More link below to jump down to the Additional Information section of this page.
Were there changes to the federal undergraduate lending programs?
No. An earlier version of the bill proposed eliminating the Subsidized Direct Loan Program, but this did not make it into the final Act.
Will I still be eligible for the Pell Grant?
Please see the dropdown above for more information on changes to the Pell Grant program. Generally, students will remain eligible for the program if:
- Their scholarships do not exceed their Cost of Attendance (COA).
- They do not have a Student Aid Index (SAI) greater than twice the maximum Pell limit.
The provision that originally proposed changing the definition of full-time enrollment for Pell eligibility and eliminated Pell for students under half-time status did not make it into the final version of the Act.
What is a Parent PLUS Loan?
Parent PLUS Loans allow parents to borrow federal loans for their dependent undergraduate students, regardless of financial need. Beginning July 1, 2026, this program will have new loan limits for new Parent PLUS Loan borrowers.
How do Parent PLUS Loans work?
Parent PLUS Loans are federal loans provided to eligible parents of dependent undergraduate students. They are not based on financial need, and the parent is the borrower – the loan cannot be transferred to the child.
How and when do you apply for a Parent PLUS Loan?
Apply for a Parent PLUS Loan using Federal Student Aid’s online application form. The student’s Free Application for Federal Student Aid (FAFSA) form must be completed before applying for a Parent PLUS Loan.
To find federal and state FAFSA deadlines, visit here.
How much can you borrow with a Parent PLUS Loan, and are there limits?
Beginning July 1, 2026, there will be new loan limits for new Parent PLUS Loan borrowers.
Effective July 1, 2026, parents of undergraduate students will be eligible to borrow up to $20,000 per year per student, up to an aggregate of $65,000 per student.
Some exceptions apply:
- If students have already received Parent PLUS Loans, the parent can continue borrowing under the current borrowing limits (up to the full cost of attendance) until June 30, 2029, or until the student completes their current program, whichever comes first.
- If the student changes program or major, the new loan limits apply to future PLUS loans borrowed.
- Parent PLUS Loans borrowed after July 1, 2026 are only eligible for the Standard Repayment Plan (more information under “Repayment Plans” below).
Do Parent PLUS Loans qualify for Public Service Loan Forgiveness (PSLF)?
Yes, Parent PLUS Loans can qualify for the PSLF program. If you’re employed by a government or not-for-profit organization, you may be eligible for PSLF.
Additional Information
Miscellaneous
New loans disbursed after July 1, 2026 will only have two repayment options:
- Repayment Assistance Plan (RAP)– the new income-based repayment plan
- Standard repayment plan
Anyone who does not select between the two above options will be defaulted into the standard repayment plan.
Current borrowers that do not borrow any more funds after July 1, 2026 will have the option to enroll in:
- the current Standard Repayment plan,
- the Graduated Repayment Plan
- the Extended Repayment Plan
- or the Income Based repayment plans
but they must do so before July 1, 2028.
Anyone that takes out loans after July 1, 2027 will not be able to use the economic hardship nor unemployment deferments to pause payments. However, these loans will be eligible for up to 9 months of forbearance in a two-year period.
What do I need to do?
Please visit studentaid.gov to see whether you have taken out federal student loans and which types of loans you have utilized. Please also find your loan service provider to contact about your repayment options. Make sure all of your contact information is up-to-date so that your loan service provider can contact you if needed.
Repayment Assistance Plan (RAP)
This is not the same as the current Income-Based Repayment (IBR) Plan.
This payment plan takes into account a borrower’s ability to pay based on their adjusted gross income within some guidelines:
- Will reduce borrower’s principal by up to $50 if their monthly payment does not already do so
- A monthly payment of 1-10% of monthly gross income
- A minimum payment per month of $10
- $50 off monthly base payment per dependent
- 30-year repayment plan
- No monthly payment cap
- No negative amortization
- Will waive any interest not covered by monthly payment
Here is what you can expect the payment structure to be under this plan, using adjusted gross income:
- $10/month for those making less than $10,000 annually
- 1% of income for those making between $10,000 and $20,000 annually
- 2% of income for those making between $20,000 and $30,000 annually
- 3% of income for those making between $30,000 and $40,000 annually
- 4% of income for those making between $40,000 and $50,000 annually
- 5% of income for those making between $50,000 and $60,000 annually
- 6% of income for those making between $60,000 and $70,000 annually
- 7% of income for those making between $70,000 and $80,000 annually
- 8% of income for those making between $80,000 and $90,000 annually
- 9% of income for those making between $90,000 and $100,000 annually
- 10% of income for anyone making more than $100,000 annually
- Subtract $50 per month per dependent
- Minimum payment of $10 per month
Standard Repayment Plan
This is not the same as the current standard repayment plan.
Repayment term will be dependent on the amount borrowed:
- 10 years for those that borrowed less than $25,000
- 15 years for those that borrowed between $25,000 and $50,000
- 20 years for those that borrowed between $50,000 and $100,000
- 25 years for those who borrowed more than $100,000
Income-Based Repayment Plan
This plan will only be available to past borrowers with some modifications:
- Still includes loan cancellation after 25 years or 20 years for new borrowers
- No more requirement to demonstrate financial hardship
Consolidation Loans
- Any loans consolidated on or after July 1, 2026 will only be able to utilize the Repayment Assistance Plan or the Standard Repayment plan.
- For loans consolidated before July 1, 2026, a repayment plan must be chosen before July 1, 2028, or the loan will be placed into either RAP or an IBR.
- Any borrowers in an Income Driven Repayment (IDR) Plan prior to July 1, 2026 will be able to select between a Standard, Income-Based Repayment, or Repayment Assistance Plan so long as they do so before July 1, 2028. However, if the consolidation was used for a Parent PLUS Loan, it must enter repayment before July 1, 2028 to be able to utilize Income-Based Repayment.
Parent PLUS Loans
Any Parent PLUS Loans borrowed after the July 1, 2026 deadline will only be eligible to use the Standard Repayment Plan. The following rules apply:
- In order to use the Income-Based Repayment Plan, the parent must have consolidated the loan by July 1, 2026 and opt into the IBR before July 1, 2028.
- Anyone that fails to select a repayment plan before July 1, 2028 will automatically be enrolled in RAP. Any loans that do not qualify for RAP will be automatically enrolled in the Standard Repayment Plan.
- If some loans are borrowed before July 1, 2026 and some are borrowed after, they must all be under the Standard Repayment Plan.
Public Service Loan Forgiveness (PSLF)
The new Repayment Assistance Plan (RAP) will count toward PSLF. Borrowers will still need to meet the other requirements for forgiveness.
Whereas borrowers could previously rehabilitate a defaulted loan just once, they will now be able to rehabilitate it up to two times. The minimum rehabilitation payment will be $10.
- National Association of Financial Aid Administrators: Federal Student Aid Changed from the One Big Beautiful Bill Act
- FSA: Federal Student Loan Program Provisions Effective Under the One Big Beautiful Bill Act
- The One Big Beautiful Bill Act
- FSA: One Big Beautiful Bill Act Updates
- FSA: Manage and Repay Your Federal Student Loans
- National Consumer Law Center: Big Bill Means Big Changes For Student Loan Borrowers: What You Need to Know
- Tate Law: ICR Calculator
- Student Loan Planner: IDR Calculator
- Nerd Wallet: Discretionary Income Calculator
Financial Aid And Student Accounts
At a Glance
FAFSA: Your Key to Funding College
Each fall, the FAFSA becomes available on October 1, allowing undergraduate and graduate students to begin planning their financial aid for the next academic year. At Valpo, financial aid awards are reviewed and processed on a rolling basis once your admission application and FAFSA are received, giving you earlier insight into your college costs. Indiana-based undergraduates who wish to be considered for state grant funding must complete the FAFSA no later than April 15.
Choose Your Pathway
Information for:
Supporting Your Valpo Journey
At Valpo, our Student Financial Services team is here to help you navigate aid and student accounts with personalized support. Student Financial Services consists of the Office of Financial Aid and the Office of Student Accounts:
Office of Financial Aid
Kretzmann Hall, Suite 103
1700 Chapel Drive,
Valparaiso, IN 46383
The Office of Financial Aid helps students and families find the best path to funding a Valpo education. From completing the Free Application for Federal Student Aid (FAFSA) and exploring scholarships, to reviewing your aid offer and understanding loan options, our team is with you every step of the way. We’re committed to making a Valpo education attainable for every student we serve.
Office of Student Accounts
Kretzmann Hall, Room 137
1700 Chapel Drive,
Valparaiso, IN 46383
The Office of Student Accounts is your resource for the financial details that come with being a Valpo student. That includes tuition and fee billing, payment plans, refunds, and e-bill access for students, and authorized payers. Whether you need to make a payment, set up a payment plan, or check on your account, we are happy to help.