University of Texas at Austin Explains Impact of New Federal Financial Aid and Loan Limits on Students

The University of Texas at Austin's financial aid office, Texas One Stop, has clarified the impact of recent federal updates to financial aid and loan limits for the fall 2026 semester. Professional graduate degree borrowers can now borrow up to $50,000 annually with a $200,000 lifetime cap, while non-professional borrowers are capped at $20,500 annually and $100,000 lifetime. Parent PLUS loans for incoming undergraduates are capped at $20,000 annually with a $65,000 lifetime cap per student. Students who took out federal loans before July 1, 2026, will generally retain legacy rules, but transferring to a different college or institution, or taking a leave of absence, could trigger the new caps.