Who qualifies
You qualify if, as of June 30, 2026, you were enrolled in a program of study and had already received a federal Direct Loan for that program (or a parent borrowed for you).
What you keep
The new graduate, professional, parent PLUS and lifetime limits don’t apply to you, and Grad PLUS stays available, for your “expected time to credential”.
How long
The lesser of:
- three academic years, or
- your program’s published length minus the part you have completed.
Example: a four-year professional program, with one year done by June 30, 2026, leaves three years: the exception covers three. With two years done, it covers two.
What ends it
Changing programs. The exception is tied to the program you were enrolled in and borrowing for.
Check with the school
The financial aid office applies the rule. Ask how they calculated your expected time to credential.
Not financial or legal advice. This page explains the published rules. It does not tell you which plan to choose. Your loan servicer and StudentAid.gov have the final word on your account.
Official sources
- Public Law 119-21 (H.R. 1, signed July 4, 2025), Title VIII, Secs. 81001–82004
- StudentAid.gov: One Big Beautiful Bill Act – Important Definitions (updated Aug. 24, 2026)
Last verified Oct 17, 2026. Corrections are logged on What changed.
Next guide: Parent PLUS loans under the new rules