Loans

Under the Working Families Tax Cut Act (WFTC), you are considered a new federal loan borrower if both of these are true:

• You (the student) begin an undergraduate, graduate or professional program of study on or after 7/1/26, and
• You (the student) did not receive any Federal Direct Loan (Subsidized, Unsubsidized or PLUS) for that specific program of study prior to 7/1/26.

If you borrowed loans for your current program of study before 7/1/26, you are considered a legacy borrower.

You are considered a legacy borrower only if both of the following are true:

• You (the student) are enrolled in the same program of study and same degree type at the same institution in the 2026-27 academic year that you were enrolled in prior to 7/1/26.
• You (the student) borrowed a Federal Direct Loan (Subsidized, Unsubsidized, or PLUS) or your parent borrowed a Parent PLUS loan for that specific program of study prior to 7/1/26. The loan must be tied to the same program of study in which you remain enrolled after 7/1/26.

Legacy borrowers receive several exemptions (also called interim exception) that allow them to continue borrowing under pre WFTC rules for a limited period. These provisions include:

• Continued borrowing under the old (current) loan limits.
• Borrowing limited to the lesser of 3 academic years or the remaining time to credential.

Important: Withdrawing or a break in enrollment will result in the loss of the interim exception. Once this occurs, new loan borrowing rules take effect.  However, an approved leave of absence or not enrolling in the summer semester are not considered a break in enrollment.

If you don’t meet the above criteria as a legacy borrower, you are considered a new borrower.

A program of study is an organized set of courses that leads to a specific degree or certificate. 

The following are examples of “program of study”:

• Undergraduate
• Graduate
• Professional

The following are examples of “degree type”:

• Certificate
• Associate’s
• Bachelor’s
• Master’s
• Doctorate
   

The Federal Direct Loan borrowing limits in place before WFTC took effect on 7/1/2026:

*Includes both undergraduate and graduate loan borrowing.

No. WFTC does not change undergraduate annual or aggregate federal loan limits.

Annual Borrowing Limits (unchanged):

• Freshman: $5,500 (or $9,500 for independent students)
• Sophomore: $6,500 (or $10,500 for independent students)
• Junior/Senior: $7,500 (or $12,500 for independent students)

Aggregate Borrowing Limits (unchanged):

• Dependent undergraduates: $31,000
• Independent undergraduates: $57,500

No. The Federal Direct Subsidized Loan program remains unchanged under WFTC, including eligibility criteria and how interest subsidies work.

For new Parent PLUS borrowers on or after 7/1/26, WFTC introduces fixed annual and aggregate borrowing limits per dependent student, shared across all parents. New borrowers will have an annual limit of $20,000 and an aggregate limit of $65,000 per dependent student.

Parents who borrowed Parent PLUS loans prior to 7/1/26 may be eligible to borrow under the previous borrowing rules as long as the student is eligible for the interim exception and the parent is eligible to borrow. This provision allows the parent to continue borrowing up to the student’s cost of attendance minus other financial aid for up to 3 additional academic years or until the student completes their current program of study—whichever occurs first.

All parents combined may borrow up to $20,000 per academic year per dependent student.

A new aggregate borrowing cap of $65,000 per dependent student has also been established. It is very important that families keep the aggregate limit in mind when planning annual borrowing so students have what they need to finish their program of study.

All parents combined may borrow up to $65,000 total per dependent student. Please keep this aggregate limit in mind when planning annual borrowing.

No. A student cannot borrow additional Federal Direct Unsubsidized loans when their parent has reached the parent PLUS aggregate loan limit of $65,000.

Yes. Multiple parents may borrow Parent PLUS loans, however borrowing limits apply:

• Students enrolled in a program of study prior to 7/1/26 may be eligible for the interim exception if their parents borrowed a Parent PLUS loan prior to 7/1/26 for that program of study. This provision allows the parent to continue borrowing up to the student’s cost of attendance minus other financial aid for up to 3 additional academic years or until the student completes their current program of study—whichever occurs first.
• For new borrowers on or after 7/1/26:
  • All parents combined may borrow no more than $20,000 annually per dependent student, and
  • A new aggregate borrowing cap of $65,000 per dependent student has been added over the student’s academic career.

It depends.

Students enrolled in a program of study prior to 7/1/26 may be eligible for the interim exception if their parents borrowed a Parent PLUS loan prior to 7/1/26 for that program of study. This provision allows the parent to continue borrowing up to the student’s cost of attendance minus other financial aid for up to 3 additional academic years or until the student completes their current program of study—whichever occurs first.

However, withdrawing or ceasing enrollment on or after 7/1/26 will result in the loss of the interim exception and new loan borrowing limits will take effect.

Yes. Declining your own student loans does not prevent your parents from taking out a Parent PLUS Loan. However, it is important to note that starting 7/1/26, Parent PLUS Loan borrowing limits take effect if the student is not eligible for the interim exception. This will affect the annual and aggregate loan amounts the parents may borrow.

Yes. Enrollment status affects both undergraduate and graduate federal loan eligibility.

• You must be enrolled at least half-time to receive most federal loans.
• Federal loans will be prorated for students enrolled less than full-time.
• If a student’s enrollment changes after federal loans have been disbursed for the semester, loan borrowing for the next semester may be adjusted or reduced.

It depends. When a student changes their enrollment mid semester, multiple factors come into play—most importantly when the change occurs and the current status of the loan.

If a student’s enrollment changes after federal loans have been disbursed for the semester, loan borrowing for the next semester may be adjusted or reduced. Federal rules require the proration of loans in certain circumstances.

It is important that you contact the Financial Aid Office to determine how changes to your enrollment may affect your financial aid.

If a student is in their final term, which is shorter than an academic year and will graduate at the end of the term, Federal Direct loans must be prorated proportionally to the total annual loan limit.

The above pertains to “historical loan proration” and is specific to annual loan borrowing.

There is also a new requirement called “schedule of reductions” that aligns loan amounts with the student’s actual enrollment intensity within a semester. See “What is Schedule of Reductions?” for more information.
 

WFTC requires Ashland University to adjust annual Federal Direct loan amounts for the 2026-27 academic year and beyond if the student is enrolled less-than-full time for the academic year. Students are still required to be enrolled half-time as defined by their academic program to borrow Federal Direct loans.

This new regulation applies to all undergraduate and graduate students. All Federal Direct Loans, except the Parent Plus loan, are subject to this reduction requirement.

The above is a new requirement that aligns loan amounts with the student’s actual enrollment intensity within each semester of an academic year.

There is also a requirement called “historical loan proration” that is specific to annual loan borrowing. See “What is loan proration?” for more information.
 

Yes. Although graduate Direct Unsubsidized Loan annual limits remain unchanged ($20,500), WFTC made significant changes to aggregate borrowing limits and added a new lifetime borrowing limit for graduate and professional students.

*The total lifetime borrowing limit now includes all federal student loans—subsidized, unsubsidized, and Grad PLUS—across all levels of study, including:

• Undergraduate loans,
• Graduate loans,
• Professional program loans.

Parent PLUS Loans are not counted toward the student’s lifetime borrowing limit.

Federal regulations determine which academic programs qualify for the professional student loan borrowing distinction. Based on those requirements, the following Ashland University programs are currently eligible:

• Master of Divinity (MDIV) - CIP 39.0602
• Master of Divinity in Chaplaincy (MDIV-CHAP) - CIP 39.0602

It depends on when you started your graduate program at Ashland University. 

• Students who begin a graduate program at Ashland University on or after 7/1/26 will not be eligible to borrow Grad PLUS loans due to the elimination of the program.
• Students who are enrolled in a graduate program at Ashland University before 7/1/26, and received a Direct Loan for that program before 7/1/26, qualify for the interim exception. This allows them to continue borrowing Grad PLUS Loans if they:
  • Remain enrolled at least half-time,
  • Meet federal credit requirements, and
  • Borrow for the lesser of 3 academic years or the remaining time to credential.

Important: Withdrawing or a break in enrollment results in the loss of the interim exception. Once this occurs, new loan limits take effect and Grad PLUS borrowing is no longer permitted. However, an approved leave of absence or not enrolling in the summer semester are not considered a break in enrollment.

Effective 7/1/26, the Grad PLUS loan program will begin phasing out. Students who begin a graduate program at Ashland University on or after 7/1/26 will not be eligible to borrow Grad PLUS loans due to the elimination of the program. However, students who are enrolled in a graduate program at Ashland University before 7/1/26 and received a Direct Loan for that program of study before 7/1/26, qualify for the interim exception and may be eligible to borrow.

No. You can continue to receive the interim exception if you remain within your same program of study and same degree type at the same institution.

Undergraduate Students

• Changing your major within the Bachelor’s, Associate’s, or certificate degree type will not cause you to lose the interim exception.
• Switching from a Bachelor’s degree to an Associate’s degree, or vice versa, will result in losing the interim exception.

Graduate Students

• Changing majors/concentrations may cause you to lose the interim exception.
• It is clear that the interim exception will be lost upon graduating from or ceasing enrollment in a graduate program.

Always contact the Financial Aid Office before changing your program of study to ensure the change won’t impact your interim exception, especially if maintaining that status is important to your borrowing plans..

Yes. A program or degree type change will result in:

• Loss of interim exception, meaning you would move to the new WFTC limits for graduate or professional borrowers.
• Different annual and aggregate loan limits, depending on whether your new program is classified as graduate or professional.
• Loss of eligibility for Grad PLUS if your new program begins on or after 7/1/26, because Grad PLUS is being eliminated for new borrowers.

A program of study (e.g. undergraduate, graduate, or professional) is an organized set of courses that leads to a specific degree or certificate. The degree type refers to the specified degree the student is seeking (e.g. certificate, associate’s, bachelor’s, master’s, or doctorate).

Because these rules can significantly affect borrowing, always consult with the Financial Aid Office before changing programs.

No. Students cannot opt out of the interim exception to borrow under new WFTC rules. However, withdrawing or ceasing enrollment will result in the loss of the interim exception. Once this occurs, new loan borrowing rules take effect.

Repayment options will be streamlined into two plans: a new tiered standard repayment plan and a new income-driven repayment plan called the Repayment Assistance Plan (RAP).

Existing income-contingent repayment plans will sunset in 2028.

Ashland University offers a 5-, 4- or 3-month payment plan to cover your semester costs. Visit our Pay My Tuition page for more information on TouchNet Payment Plans and how to enroll.

Students and/or parents who need more loan funds can apply for a private loan. Visit our loans page to access our ElmSelect private loan comparison list or Sparrow loan comparison tool to assist in your search for a private lender.

The timeline varies by lender, but most private loans take about 5-10 business days from application to disbursement. Applying early helps avoid delays, but do not apply too early that your application risks expiring.