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.
How Is the Schedule of Reductions (SOR) Calculated?
The calculation considers the number of credits a student is enrolled in during the academic year compared to the credits required for full-time enrollment.
- Step 1: Determine Full-Time Enrollment
- Undergraduate students: 12 credits per semester
- Graduate students: 9 credits per semester
- Step 2: Review Actual Enrollment
- The students credit load is reviewed to determine whether a loan reduction is required
- Step 3: Calculate Revised Loan Eligibility
- The applicable SOR percentage is applied to the students annual Federal Direct Loan eligibility to determine the adjusted amount
- Step 4: Subtract Loans Already Received
- Any loan funds already disbursed are subjected from the revised annual eligibility to determine the remaining loan amount availability
Important: Students enrolled less than full-time may receive a reduced Federal Direct Loan amount. Changes in Fall enrollment may also affect Spring loan eligibility, even if the student returns to full-time enrollment.
SOR Calculation Example: Less Than Full-Time Enrollment
A student is originally eligible for $5,500 in annual Federal Direct Loans but is only enrolled for 9 credits each semester. A Schedule of Reductions (SOR) calculation is applied to determine the revised loan amount.
Step 1: Calculate the SOR Percentage
Fall Enrollment: 9 credits
Spring Enrollment: 9 credits
Total Annual Credits: 18 credits
Full-Time Annual Credits (Undergraduate): 24 credits
18 / 24 = 75% SOR Percentage
Step 2: Apply the Percentage to the Annual Loan
Original Annual Loan: $5,500
SOR Percentage (based on enrollment): 75%
Revised Annual Loan ($5,500 x 75%): $4,125
Result: The student's annual Federal Direct Loan eligibility is reduced to $4,125.
How the Schedule of Reductions (SOR) Affects Undergraduate Students
The Schedule of Reductions (SOR) determines how Federal Direct Loan eligibility is adjusted when a student is enrolled less than full-time.
Undergraduate Full-Time Enrollment Requirements
For federal financial aid purposes, undergraduate students must be enrolled in at least 12 credits to be considered full-time.
Fall and Spring Semesters: Full-Time Enrollment 12 credits
Summer Semesters: Full-Time Enrollment 12 credits
How Enrollment Affects Your Federal Direct Loans
Your annual Federal Direct Loan eligibility is based on your enrollment status and the length of your enrollment during the academic year.
If you enroll in fewer than 12 credits per semester, your loan eligibility may be reduced based on your credit load.
Example: Annual Federal Direct Loan Eligibility
The following example illustrates how enrollment affects a student who would otherwise qualify for $5,500 in annual Federal Direct Loans for the Fall and Spring semesters.
12+ credits/semester: $5,500
9 credits/semester: $4,125
6 credits/semester: $2,750
Amounts shown are examples, not guarantees.
How the Schedule of Reductions (SOR) Affects Graduate Students
Graduate students are also subject to the Schedule of Reductions when enrolled less than full-time. Federal Direct Unsubsidized Loan eligibility may be adjusted based on the number of credits taken each semester.
Graduate Full-Time Enrollment Requirements
For federal financial aid purposes, graduate students must be enrolled in at least 9 credits to be considered full-time.
Fall and Spring Semesters: Full-Time Enrollment 9 credits
Summer Semesters: Full-Time Enrollment 9 credits
How Enrollment Affects Your Federal Direct Unsubsidized Loans
Your annual Federal Direct Unsubsidized Loan eligibility is based on your enrollment status and the length of your enrollment during the academic year.
If you enroll in fewer than 9 credits per semester, your loan eligibility may be reduced based on your credit load.
Example: Annual Federal Direct Unsubsidized Loan Eligibility
The following example illustrates how enrollment affects a new graduate student who would otherwise qualify for $20,500 in annual Federal Direct Unsubsidized Loans for the Fall and Spring semesters.
9+ credits/semester: $20,500
6 credits/semester: $13,735
4.5 credits/semester: $10,250
Amounts shown are examples, not guarantees.
How Dropping or Withdrawing from a Fall Course Can Affect Your Spring Loan
If you drop or withdraw from a Fall course and your Fall enrollment changes from full-time to less than full-time, we may be required to recalculate your annual Federal Direct Loan eligibility. This can result in a reduction to your Spring loan disbursement, even if your Spring enrollment is full-time.
For SOR purposes, a course from which you withdraw and receive a “W” is treated similarly to a dropped course when the withdrawal changes your reported enrollment status.
Example: How a Fall Withdrawal May Reduce Your Spring Loan
A student is originally eligible for begins $5,500 in Federal Direct Loans for the academic year. In the Fall semester enrolled in 12 credits (full-time) and later withdraws from a 4-credit course, leaving the student with 8 credits for Fall. Later registers for 12 credits for spring semester. Their annual loan eligibility is then recalculated using an 84% SOR factor (20/24).
Example: 84% SOR Calculation
Step 1: Enrollment Change
Original Fall Enrollment: 12 credits (Full-Time)
Course Withdrawal: - 4 credits
Remaining Fall Enrollment: 8 credits (Less Than Full-Time)
Spring Enrollment: 12 credits (Full-Time)
Step 2: Loan Calculation Using 84% SOR
Original Annual Loan of $5,500
Revised Annual Loan (84% of $5,500) of $4,620
Fall Loan (already received): $2,750
Remaining Spring Loan: $1,870
Reduction to Spring Loan: -$880
Result: The student's Spring loan is reduced by $880, even though they return to full-time enrollment in Spring.
Before Making Changes to Your Course Schedule
Dropping or withdrawing from a course can have financial consequences beyond the current semester.
We strongly encourage you to contact the Financial Aid Office before making changes to your enrollment. Our team can review your financial aid eligibility and help you understand how changes to your course schedule may affect your federal student loans.
For academic advising assistance, you may also contact:
Elizabeth Niemeyer
Director of Advising & Peer Mentorship
Center for Student Academic Success
Phone: 401-254-3456
Email: advising@rwu.edu
For questions about your federal loan eligibility or financial aid package, please contact:
Roger Williams University Financial Aid Office
Phone: 401-254-3100
Undergraduate: finaid@rwu.edu
Graduate: gradfinaid@rwu.edu
We encourage students to plan ahead and understand how enrollment decisions may affect their financial aid before making changes to their schedules.
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