Federal Student Loan Program Undergoes Significant Changes for 2026-2027 Academic Year

New federal student loan rules, including revised FAFSA calculations, changes to Pell Grant eligibility, and the phasing out of several income-driven repayment plans, are set to take effect for students entering college in 2026 and beyond. Grad PLUS loans will also be eliminated for new graduate and medical school students after July 1, 2026.