Key Federal Financial Aid Changes

You are currently enrolled in the DVM program which is considered a professional program.

What Are The New Loan Limits?

Graduate PLUS loans will no longer be available for new borrowers starting July 1, 2026. Current borrowers eligible for the grandfathering provision can receive Graduate PLUS loans as long as they remain eligible for the grandfathering provision.

Effective July 1, 2026, a student has a limit on the annual and lifetime amount of federal loans they can access. The caps are different for graduate, professional and parent borrowers. Note, existing continuously enrolled students may retain access to current loan limits and rules.

All Direct Subsidized and Unsubsidized loans have a lifetime limit of $257,500 for all levels of enrollment, undergraduate, graduate and professional regardless of any loans that are repaid or forgiven.

Will there be an exception for current students through a grandfathering provision?

Current students may qualify for a limited grandfathering provision that delays the start of the new federal loan limits.

To qualify for this grandfathering provision you must:

• Be enrolled and begin courses on or before June 30, 2026
• Receive a Direct Loan disbursement on or before June 30, 2026 for that program
  • This includes Direct Subsidized, Unsubsidized and PLUS loans

The grandfathering provisions last until the first of these events occurs:

• Three academic years pass
  • at AUC, three academic years is 6 semesters
• The remaining expected program completion time passes
  • Expected program completion time using the methodology required by the One Big Beautiful Bill act is 10 semesters, the remaining expected program completion time is 10 semesters – the number of semesters in which you were enrolled.  For example, if you have enrolled in 5 semesters your remaining grandfathered eligibility would be limited to 5 semesters.
• You stop being continuously enrolled under university and federal student aid requirements

Eligibility remains subject to federal law, Department of Education guidance, and continued compliance with institutional enrollment requirements.

You are enrolled less than full time over a full academic year.

Is My Loan Amount Reduced?

If you enroll less than full time over a full academic year the annual amount of loans you qualify for will be reduced.

Example if you enroll in half the credits required for full-time enrollment, your annual loan amount will be reduced by half.  Note that this change takes effect with the 2026/2027 award year and is not delayed for students eligible for grandfathering.

Will there be an exception for current students through a grandfathering provision?

Current students may qualify for a limited grandfathering provision that delays the start of the new federal loan limits.

To qualify for this grandfathering provision you must:

• Be enrolled and begin courses on or before June 30, 2026
• Receive a Direct Loan disbursement on or before June 30, 2026 for that program
  • This includes Direct Subsidized, Unsubsidized and PLUS loans

The grandfathering provisions last until the first of these events occurs:

• Three academic years pass
  • at AUC, three academic years is 6 semesters
• The remaining expected program completion time passes
  • Expected program completion time using the methodology required by the One Big Beautiful Bill act is 10 semesters, the remaining expected program completion time is 10 semesters – the number of semesters in which you were enrolled.  For example, if you have enrolled in 5 semesters your remaining grandfathered eligibility would be limited to 5 semesters.
• You stop being continuously enrolled under university and federal student aid requirements

Eligibility remains subject to federal law, Department of Education guidance, and continued compliance with institutional enrollment requirements.

What Are My New Repayment Options?

Once you graduate or stop enrolling, you’ll choose one of the following repayment options for your federal student loans.

Standard Repayment Plan

• Fixed payments over 10-25 years (based on debt amount)
• Pays off loans fastest, lowest total interest

Repayment Assistance Plan (RAP)

• Income-based payments (minimum $10/month)
• Forgiveness after 30 years (360 payments)
• Good for variable income or public service careers

Income-Based Repayment (IBR)

• Only available if you borrowed prior to July 1, 2026, and do not borrow after July 1, 2026
• Payments capped at 10% of discretionary income
• Forgiveness after 20 years

Is My Repayment Plans Changing?

Yes, your repayment plans may be changing.

If you are enrolled in any of the repayment plans listed here:

• Standard repayment plan
• Income Based Repayment (IBR) plan
• Graduated repayment plan
• Extended repayment plan

You will need to select a new repayment plan, beginning July 1, 2026. You will only be able to enroll in the new standard plan, the new repayment assistance plan or income-based Repayment (IBR).

Reach out to your loan servicer to explore the repayment options available to you.

Are Federal Student Loans Changing?

The Graduate PLUS loan program is unavailable for new borrowers beginning on July 1, 2026. The Professional Direct Unsubsidized loan limits are changing, see below for the new amounts.

Effective July 1, 2026, a student has a limit on the annual and lifetime amount of federal loans they can access. The caps are different for graduate, professional and parent borrowers. Note, existing continuously enrolled students may retain access to current loan limits and rules.

All Direct Subsidized and Unsubsidized loans have a lifetime limit of $257,500 for all levels of enrollment, undergraduate, graduate and professional regardless of any loans that are repaid or forgiven.