Federal Student Loan Changes Effective July 1, 2026
North Central Texas College (NCTC) wants to make sure students and families are aware of important changes to federal student loans that may affect how you plan and pay for college.
The One Big Beautiful Bill Act (OBBB), enacted in July 2025, made changes to several federal student loan programs. These changes took effect July 1, 2026.
Here is what NCTC students and families need to know.
Undergraduate Student Loans
Good news for undergraduate students: Annual federal student loan limits did not change.
However, the amount you borrow now as an undergraduate student will count towards the overall lifetime cap of $257,500 of combined undergraduate and graduate/professional coursework. As always, we encourage you to borrow only what you need to help cover your educational expenses.
Changes to Parent PLUS Loans
If your parent plans to use a Parent PLUS Loan to help pay for your education, new borrowing limits took effect July 1, 2026.
If your parent borrowed a Parent PLUS Loan for you before July 1, 2026, they may be able to continue borrowing under the previous limits for up to three additional years or until you complete your current program, whichever comes first.
After July 1, 2026 new Parent PLUS borrowers limits apply as outlined below:
- Parents may borrow up to $20,000 per student each year.
- There is a $65,000 lifetime borrowing limit per dependent student.
What If I Attend Part Time?
If you attend NCTC part time, under the new rules, starting with the 2026-27 academic year federal student loan amounts for students enrolled less than full-time are reduced in direct proportion to their credit load. Previously, students had to be enrolled at least half-time to qualify for the full student loan award.
Students still must be enrolled at least half-time to qualify for any federal student loans.
Before dropping a class or changing your schedule, talk with NCTC Financial Aid. A change in your credit hours could affect your federal student loan eligibility.
Questions? We Are Here to Help!
Financial aid can be confusing, especially when federal requirements change. You do not have to figure it out on your own.
The NCTC Financial Aid Office is here to help you understand how these changes may affect your financial aid and discuss the options available to you.
Before making changes to your enrollment or borrowing decisions, reach out to Financial Aid. We are here to help you stay informed and keep moving toward your goals.
Information is based on federal guidance from the U.S. Department of Education available as of May 1, 2026. Federal requirements and guidance are subject to change.