Federal Financial Aid Changes
Elizabethtown College is committed to keeping students and families informed as changes to federal student aid programs are implemented. Recent federal legislation will introduce significant updates to student loan borrowing and repayment beginning with the 2026–27 academic year.
The information below provides an overview of the changes currently known. As the U.S. Department of Education continues to issue guidance and clarify implementation, we will share additional updates to help you understand how these changes may impact your educational financing plans.
What's Changing and When
The following federal student aid programs are affected by recent federal legislation. Select a topic below to jump to detailed information, or scroll down to read the full summary.
- Graduate PLUS Loans — Eliminated for new borrowers beginning July 1, 2026
- Parent PLUS Loans — New annual ($20,000) and lifetime ($65,000) borrowing limits
- Part-Time Enrollment & Loan Proration — Loans must be reduced for students enrolled less than full-time
- Federal Loan Repayment — Existing income-driven plans replaced by a new Repayment Assistance Program (RAP)
- Pell Grant Changes — Limited impact for most current Etown students
Graduate and Professional Student Borrowing Changes
Beginning July 1, 2026, Federal Direct Graduate PLUS Loans will no longer be available to new graduate and professional students. Graduate and professional students may still be eligible to borrow Federal Direct Unsubsidized Loans, subject to new annual and lifetime borrowing limits.
Note: Elizabethtown College academic programs do not currently fall within the "Professional Programs" category.
Students who began their current graduate program during the 2025–26 academic year or earlier may continue borrowing Graduate PLUS Loans under a temporary legacy provision if they:
- Remain continuously enrolled in the same program and degree level
- Previously received a Federal Direct Loan before July 1, 2026
- Do not exceed the standard published length of their program
Eligibility is limited to the remaining time in the student's current program. Time already spent in the program counts toward the maximum program length, regardless of whether enrollment was full-time or part-time, not to exceed 3 years.
When Graduate PLUS Eligibility Ends
Students will lose remaining Graduate PLUS Loan eligibility if they:
- Change degree levels (for example, from a master's program to a doctoral program)
- Change academic programs
- Withdraw from their program
- Take a break in enrollment
Graduate PLUS eligibility cannot be paused and resumed.
Parent PLUS Loan Changes
Beginning with the 2026–27 academic year, Parent PLUS Loans will be subject to:
- Annual limit: $20,000 per student
- Aggregate (lifetime) limit: $65,000 per student
Federal Direct Subsidized and Unsubsidized Loan limits for undergraduate students are not changing.
Students who borrowed a Federal Direct Loan, or whose parent borrowed a Parent PLUS Loan on their behalf, may be eligible to continue borrowing under the temporary legacy provision.
Legacy Eligibility
Legacy eligibility continues until the earliest of:
- Three academic years (2026–27 through 2028–29)
- The student reaches the standard length of the academic program
- The student graduates
To maintain eligibility, the student must remain continuously enrolled.
Students will lose remaining Parent PLUS legacy eligibility if they:
- Withdraw from the College
- Fail to enroll in an academic year for which they would otherwise be eligible
- Change degree level (A.S. to B.A./B.S.)
If eligibility is lost, future Parent PLUS borrowing will be subject to the new annual and lifetime limits.
Students who transfer to Elizabethtown College after July 1, 2026, are not eligible for Parent PLUS legacy provisions, even if they remain in the same major.
For students who remain enrolled, all enrollment time — full-time or part-time — counts toward the standard program length used to determine eligibility.
New Loan Proration Requirements for Part-Time Enrollment
Beginning in 2026–27, federal student loans must be prorated (reduced) for students enrolled less than full-time. Loan amounts will be reviewed and adjusted based on enrollment status at the time of disbursement and during the add/drop period.
To receive the full annual federal loan amount:
- Undergraduate students must be enrolled in at least 24 total credit hours across at least two continuous semesters (i.e., fall and spring, typically 12 credits each semester).
- Graduate students must be enrolled in at least 12 total credit hours across at least two continuous semesters (i.e., fall and spring, typically 6 credits each semester).
Students enrolled below full-time levels may receive reduced loan amounts, which could result in a balance owed to the College.
Additional information regarding loan proration will be provided as federal implementation guidance becomes available.
Changes to Federal Loan Repayment
For federal loans first disbursed on or after July 1, 2026, existing income-driven repayment plans will be replaced by a new Repayment Assistance Plan (RAP).
Loans Disbursed On or After July 1, 2026
Borrowers may choose from:
- Repayment Assistance Plan (RAP)
- Standard 10-year repayment
- Standard 15-year repayment
- Standard 20-year repayment
- Standard 25-year repayment
Borrowers with loans disbursed before July 1, 2026, who take out additional loans on or after July 1, 2026, must repay all new and existing loans under either RAP or the Tiered Standard Plan.
Students and borrowers should contact their federal loan servicer or review information from the U.S. Department of Education for the most current repayment guidance.
Pell Grant Changes
Current academic programs at Elizabethtown College are not directly affected by the new Workforce Pell Grant provisions.
However, under the new law, students whose total financial aid already meets their Cost of Attendance may no longer be eligible to receive a Pell Grant.
What You Can Do Now
Although most of these changes do not take effect until July 1, 2026, students and families should begin planning ahead. Graduate students, as well as parents who may rely on Parent PLUS Loans, should review how the new borrowing limits and eligibility requirements could affect their financial plans.
Visit studentaid.gov for more resources and information.
Stay Informed
Elizabethtown College's Office of Financial Aid is tracking changes and will share updates as new information or official guidance from the Department of Education becomes available. Please email the Office of Financial Aid if you have questions about the status of your financial aid.
Thank you for your patience as we navigate these changes and continue our commitment to providing timely and accurate information to our students and families.
Office of Financial Aid
1 Alpha Drive
Elizabethtown, PA 17022
Phone: 717-361-1404
Fax: 717-361-1514
finaid@etown.edu