Federal Loan Updates

Graduate PLUS Loan

The Department of Education is phasing out the Graduate PLUS Loan Program for new borrowers.

Students enrolled before Summer 2026 (Regular or Module 1 Sessions) may be able to borrow Grad PLUS Loans for a limited time depending on their eligibility. If you are not enrolled or a current student, please visit cgu.edu or speak with an admissions representative for additional information.

Federal Loan Limits

Graduate students will continue to have access to Federal Direct Unsubsidized Loans, with the following limits:

• Annual Limit: $20,500 per academic year
• Aggregate Limit: $100,000 for graduate-level study

Undergraduate federal loans, private loans, or PLUS loans do not count toward this graduate aggregate limit. However, any prior graduate-level borrowing of Federal Direct Unsubsidized Loan will be included.

To calculate your aggregate loan amount, visit Federal Student Aid, log in using your FSA ID, view your complete loan history, and add up the principal balances of both your undergraduate and graduate federal loans. This includes:

• Direct Subsidized Loans (undergraduate only)
• Direct Unsubsidized Loans (undergraduate and graduate)
• Any Federal Stafford Loans or FFEL loans (older loans)

Private & PLUS loans do not count toward federal loan limits.

New Loan Proration

Students enrolled less than full-time will receive a prorated portion of their annual Federal Direct Unsubsidized Loan award. Full-time enrollment is defined as 8 or more units per semester or enrollment in Doctoral Studies or Continuous Registration. The standard tuition rate* is $2,070 per unit. Depending on the number of semesters and units in which a student enrolls per academic year, the percentage of the $20,500 annual limit for those taking 2 to 7 units per semester will be calculated as follows:
(Total units enrolled for the academic year/16 units) x 100 = reduced annual loan limit %

*The standard tuition rate is $2,070 per unit. Teacher Education, Executive Management, and Art Programs have varying unit costs; this table reflects programs that follow the estimated standard tuition rate per unit, each semester. Please contact the Office of Financial Aid or your admission representative for additional information.

Timeline for Changes

July 1, 2026 is the date when OBBBA-related updates take effect for federal student loans.

Your start term will determine how these updates apply to you, including whether transitional provisions may be available.

Students enrolled in graduate programs by July 1, 2026 may qualify for a legacy provision, which allows them to continue borrowing Grad PLUS Loans for up to 3 additional years. This legacy provision has specific conditions that must be met in order for you to qualify.

Current Students

You may qualify for a legacy provision if you were enrolled in, attending, and received a federal loan for a CGU degree‑granting program on or before June 30, 2026.

If you qualify, you may:

1. Apply for Grad PLUS Loans (for an additional 3 years) until June 30, 2029 or until your degree is completed, whichever comes first.
2. Borrow up to CGU’s cost of attendance, minus any other aid awarded on your financial aid award summary.

If you are not currently enrolled at CGU but are planning to apply, please visit cgu.edu or speak with an admissions representative for more information.

Special Considerations

Leave of Absence
Students who qualify for the legacy provision and take an approved leave of absence (LOA) would not be considered to have withdrawn, so they could continue borrowing under the legacy provisions when they return to school. However, two or more consecutive leaves of absence may result in a withdrawal from your program and loss of legacy provisions.

Change in Program/Subsequent Degrees
Students who change their primary program after July 1, 2026 or apply for a subsequent degree will forfeit their legacy provisions and be subject to the new limits.

Withdrawal or Reinstated
Students who qualify for the legacy provision and withdraw from their academic program would be subject to the new annual and aggregate limits if they re-enroll in the future.

ICR, PAYE, and SAVE

Several loan repayment plans are being phased out as part of the OBBBA changes. Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE) plans will no longer be available to new borrowers after July 1, 2026.

New Repayment Plans (Starting July 1, 2026)

New borrowers receiving their first federal loan disbursement on or after this date will be able to choose from the following repayment plans:

• Standard Repayment Plan: A structured payment plan with preset payment tiers.
• Repayment Assistance Plan (RAP): A new income-driven repayment option designed to keep monthly payments affordable based on income.

Current Borrowers
If you do not receive any new federal loan funds after July 1, 2026, you may remain in ICR, PAYE, or SAVE through June 30, 2028.

Starting on July 1, 2028:

All borrowers in prior plans will transition to the RAP or IBR plan.

Suggestion: Borrowers will transition into the Repayment Assistance Plan (RAP), though some borrowers may remain in IBR if eligible.

Deferment or Forbearance

Updates to deferment and forbearance rules will apply to new federal loans issued on or after July 1, 2026.

• Economic hardship and unemployment deferments will no longer be available for these new loans. Note: This change takes effect one year later than most other OBBBA provisions.
• Forbearance will be limited to a maximum of nine months within a two-year period.

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans allow you to borrow up to $20,500 per academic year based on your enrollment. Read more about Federal Direct Unsubsidized Loans on the studentaid.gov website.

CGU Fellowships

CGU provides fellowships for more than 85% of CGU students, with an average of $12,000 per year in funding. CGU Fellowships do not need to be repaid and are directly applied to your tuition costs. Read more about CGU Fellowships.

Private or Credit-Based Loans

Private loans are offered by external lenders, such as banks or financial institutions, and are not part of federal aid programs. Terms and eligibility vary, so it’s important to review options carefully before borrowing. Read more about borrowing essentials and private lending options on FastChoice.

External Scholarships

External scholarships are offered by organizations outside of CGU and do not need to be repaid. These awards can help supplement your funding and reduce your reliance on loans. View available scholarship resources.

Student Employment

You may qualify for part-time work as a graduate assistant, research assistant or teaching assistant. If you are interested in working up to 20 hours per week, enrolled students can access our job platform via Handshake through the Career and Professional Development Office or learn of opportunities directly through their academic department.