Federal Policy Changes

No. 

In previous academic years, in order to be eligible for federal student loans, you only needed to be enrolled in atleadt half-time credits. With the new federal policy changes, in order to be eligible for the full amount of your federal student loans, you must be enrolled atleast full-time for the full academic year. 

Full-time Status:

• Traditional Undergraduates: atleast 12 credits a semester/24 credits annually
• Bachelor's Degree for Professionals: atleast 6 credits a term/ 30 credits annually
• 15-Week Graduate Students: atleast 6 credits a semester/ 18 credits annually 
• 11- Week Graduate Students: atleast 6 credits a term/ 24 credits annually
• 8- Week Graduate Students: ateast 6 credits a term/ 30 credits annually

If you enroll less that full-time your loans will be subject to a Schedule of Reduction (SOR).

*The only federal student loan NOT subject to SOR are Parent PLUS Loans

Yes. 

If there is any break in enrollment after Summer 2026 or Term 5, you will be subject to the new federal loan limits. 

No. Your expected time to credential is not necessarily the same as your actual graduation date.

Beginning July 1, 2026, your expected time to credential is calculated as the lesser of:

• Three (3) academic years, or
• The remaining published length of your program after subtracting the portion you completed before July 1, 2026.

The published program length is the minimum amount of time a full-time student is expected to complete a specific program, as listed in your school's catalog, marketing materials, or other official publications.

Because this calculation is based on your program's published length—not the date you actually graduate—your expected time to credential may end before your actual graduation date if you take longer than the published program length to complete your degree.

This new law only impacts federal loan programs such as Federal Direct Loans, Parent PLUS Loans and Graduate PLUS Loans. 

CLU still works and processes all Private Loan requests.

Review your academic program and work with academic advising to ensure your coursework for the upcoming academic year is planned to maximum aid eligibility. In order to ensure you are receiving the maximum amount you are eligible for, be sure to maintain atleast full-time enrollment (12+ credits for undergraduates, 6+ credits for bachelors degrees for professionals, and 6+ credits for graduates). 

Yes. Starting with the 2026-2027 academic year, all federal loans are subject to a scheduled reduction (SOR) for students who are not enrolled atleast full-time (12+ credits for traditional undergraduate students, 6+ credits for bachelors degrees for professional students).

You (and your parent) would only continue to be eligible for the interim exception for the semester you have remaining. 

If you require additional semesters after your final semester to complete your degree requirements, your parent will subject to the 'new borrower' loan limits.

New borrowers are students who do not qualify for the legacy loan provision described below.

A student may qualify for the legacy loan provision if, prior to July 1, 2026, the student (or a parent on the student’s behalf) borrowed a Direct Loan while the student:

• was enrolled in a degree program at CLU;
• will continue in the same program during the Fall 2026 term; and
• is progressing toward completion within the program’s published length, as determined by the academic program at CLU.*

Under the legacy loan provision, borrowers may remain eligible for up to three additional academic years or through the remainder of the program’s published length—whichever period is shorter. Eligibility under this provision will not extend beyond June 30, 2029.

* Contact your academic advisor if you have questions about, or are unsure of, your program’s published length.

If you or your student received a Federal Direct Loan (subsidized, unsubsidized, or Parent PLUS) before July 1, 2026, while the your student was enrolled in a program of study at CLU, you may continue borrowing under the current loan limits for up to three additional academic years or through the remainder of your student’s expected time to credential, whichever is shorter.

In other words, the legacy provision applies to undergraduate students and parent borrowers who had any type of Direct Loan disbursed and applied to the student’s CLU tuition account before July 1, 2026. As long as the student remains enrolled at CLU in an undergraduate degree-seeking program, parent borrowers may continue to access current loan limits for up to three additional academic years or for the remainder of the program’s published length—whichever period is shorter.

As long as the student remains continuously enrolled in the same degree level (for example, a bachelor’s degree program), changing majors will not affect eligibility under the legacy provision. In these cases, the provision will continue to apply for up to three academic years or through the student’s remaining expected time to credential, whichever is shorter.

Example 1: A current CLU student changes majors from English (Bachelor of Arts) to Engineering (Bachelor of Science). Because the student remains enrolled in a bachelor’s degree program, the change in major does not affect eligibility for the parent PLUS legacy loan provision. The student is still considered enrolled in the same program of study for purposes of the provision.

Example 2: A current CLU student enters as an undeclared bachelor’s student and later declares a major in Exercise Science. Because the student remains enrolled in a bachelor’s degree program at CLU, they are considered to be continuing in the same program of study, and the parent PLUS legacy loan provision continues to apply.

Example 3: A current CLU student enrolled in a bachelor’s degree program transfers to another institution to complete their degree beginning in the 2026–2027 academic year. Although the student remains in the same degree level, the student is no longer enrolled at CLU. As a result, the parent PLUS legacy loan provision no longer applies, and the parent borrower would be considered a new borrower subject to the new borrowing limits.

Yes. If a student ceases enrollment for any period of time (official or unofficial), parents will be considered new borrowers subject to the new loan limits once the student returns. 

To maintain eligibility for the Parent PLUS Loan legacy provision, students must maintain enrollment for each of the required terms in their program (fall and spring). Summer is treated as an optional term for undergraduate students.

Parent PLUS loam limits under the new borrowing guidelines ($20,000 per year, $65,000 aggregate amount) are per student, not per family.

If your student is required to attend a fifth year to complete the requirements for a four-year degree, your eligibility for the interim exception depends on your student's remaining expected time to credential.

Under federal regulations, a student's expected time to credential is the lesser of:

• Three (3) academic years, or
• The remaining published length of the program after subtracting the portion completed before July 1, 2026.

For example, if your student is enrolled in a four-year program and has already completed four years by July 1, 2026, their remaining expected time to credential is zero years. In that case, the interim exception no longer applies, and any Parent PLUS Loans borrowed for a fifth year will be subject to the new federal Parent PLUS Loan limits

New borrowers are students who do not qualify for the legacy loan provision described below.

A student may qualify for a limite exception if, prior to July 1, 2026, the student borrowed a Direct Loan while the student:

• was enrolled in a degree program at CLU;
• will continue in the same program during the Fall 2026 term; and
• is progressing toward completion within the program’s published length, as determined by the academic program at CLU.*

Under the limited exception, borrowers may remain eligible for up to three additional academic years or through the remainder of the program’s published length—whichever period is shorter. Eligibility under this exception will not extend beyond June 30, 2029.

Find out if you qualify for a limited exception by using our online tool: Who Qualifies for a Limited Exception?

* Contact your academic advisor if you have questions about, or are unsure of, your program’s published length.

No. To be eligible for the Graduate PLUS legacy provision, you must borrow a graduate-level loan and have it disbursed to your account prior to July 1, 2026. 

"Program of study" refers to the program you are enrolled in while in pursuit of your graduate degree.

The only two Profressional Degrees offered at CLU are the Doctorate in Psychology (PsyD) program and MDiv. program. 

In the Department of Education's most recent announcement on June 29th, all other Cal Lutheran programs were determined to be Graduate Degrees and therefore subject to the standard graduate Direct Unsubsidized Loan Limits. 

If a borrower has received a Federal Direct Loan prior to July 1, 2026, while enrolled in their program of study, the borrower can continue to borrow Graduate PLUS Loans for up to 3 additional academic years, or the remainder of their expected time to credential, whichever is less but not to exceed June 30, 2029.

In other words, the legacy provision applies to graduate students who borrow a Direct Loan of any type and have it disbursed to their CLU account before July 1, 2026. As long as the student remains enrolled in the same program of study at CLU, they may continue borrowing for up to three additional academic years, or for the remainder of the program’s published length—whichever is shorter.

Yes. If you withdraw or cease enrollment for any required term, you will be considered a new borrower upon your return and will be subject to the following borrowing limits:

• Graduate degree programs: $20,500 per academic year,  $100,000 graduate aggregate limit, $257,500 lifetime aggregate limit (includes undergraduate and Grad PLUS borrowing). Not eligible for Grad PLUS loan program.
• Professional degree programs: $50,000 per academic year $200,000 prof. aggregate limit, $257,500 lifetime aggregate limit (includes undergraduate and Grad PLUS borrowing). Not eligible for Grad PLUS loan program.

To maintain eligibility, you must maintain enrollment for all required terms associated with your program - if summer is a required term, you must maintain enrollment to keep your legacy loan provision.

You would only continue to be eligible for the interim exception for the semester/term you have remaining. 

If you require additional semesters after your final semester to complete your degree requirements, you will be subject to the federal loan limits.

If you need additional time to complete your graduate or professional program, your eligibility for the interim exception depends on your remaining expected time to credential.

Under federal regulations, a student's expected time to credential is the lesser of:

• Three (3) academic years, or
• The remaining published length of the program after subtracting the portion completed before July 1, 2026.

For example, if you are enrolled in a two-year graduate program and have already completed the published program length by July 1, 2026, your remaining expected time to credential is zero years. In that case, the interim exception no longer applies, and any additional Direct Unsubsidized Loans or Direct PLUS Loans for Graduate/Professional Students will be subject to the new federal loan limits.

• Annual loan limit: Total Direct loan amount a student can receive in a academic year based on degree type. 
• Aggregate loan limit: The maximum amount a student can receive in Direct loans as a graduate or professional student.
• Lifetime aggregate loan limit: The combined total amount of undergraduate and graduate loans a student received under the Direct and/or FFEL loan programs (including Grad PLUS loan debt). Combined total includes loans forgiven, repaid, and discharged.