Loan Programs

Educational loans can come from the federal government or from private sources such as a bank or financial institution. 

NEW! 2026-27 Loan Changes from the One Big Beautiful Bill Act (OBBBA)

The One Big Beautiful Bill Act (OBBBA) law includes significant changes to federal student loans, borrowing limits, and repayment options. Many of these provisions require additional federal regulations before they can be fully implemented. The U.S. Department of Education is currently completing that process through negotiated rulemaking.  The information below is subject to change.

Most OBBBA financial aid changes are scheduled to take effect July 1, 2026. 

Summary of possible changes are below:

  • Parent PLUS loan capped (New annual and lifetime limits)
  • New graduate student loan limits
  • Federal Direct Loan amount reduction for less-than-full-time enrollment
  • Repayment simplified to two plans
  • Deferment options reduced

Resources: 

OBBBA Q&A: LOAN LIMITS

What are the changes to loan limits starting on 2026-27?
Loan Type

Current
2025-26 

 New 2026-27
Based on OBBBA		 Time Limited Legacy Exception:
Parent PLUS Loan Amount Limits

Annual Limit: Parent can borrow up to the student's annual Cost of Attendance (COA) minus other aid, annually.

 

Aggregate Limit: None

New Annual limit: $20,000 per dependent student 

 

 

 

 

New Aggregate Limit: $65,000 (per student)

Annual & Aggregate Limit Exception: If a parent borrowed a Parent PLUS loan for a current student before July 1, 2026, they may be able to keep borrowing under the old rules for a short period of time. The length of this exception depends on the normal length of the student’s program (2, 4, or 5 years) and how long the student has already been enrolled in that program.

The exception can last up to 3 years, but it may be shorter if the program is shorter or if the student has already used part of that timeline.

  • The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026,

AND meet ONE of the following:

  • The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026, OR
  • The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.

Continuously enrolled means the student is not withdrawn from all courses or otherwise cease enrollment outside of scheduled breaks or non-required terms, such as summer).
New Graduate Unsubsidized Loan Limits

Annual Limit: $20,500

 

 

Aggregate Limit: $138,500

Annual Limit: $20,500 (unchanged)

 

New Aggregate Limit $100,000 (only graduate Unsub loans)

New Lifetime Limit:

$257,500 (combined Sub/Unsub as Undergraduate and Grad)

Aggregate & Lifetime Limit Exceptions:

The law allows some students to be exempt from the new Direct Unsubsidized aggregate and lifetime borrowing limits under a limited exception through their time to completion, for a maximum of 3 years. Students may qualify for the limited exception if:

  • They remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026

AND

• They had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026
What happens when students no longer qualify for the Legacy exception?

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from their current school or completes their program of study, Parent PLUS Loan borrowers become subject to the new $20,000 annual and $65,000 aggregate loan limits.

What if a Parent PLUS Loan borrower needs more than the annual borrowing limit, or reaches the aggregate limit before the student graduates?

Reach out to the One Stop Delhi Student Services Office about other financing options, like external scholarships, payment plans, or private loans.

Can a new student’s parent get a Parent PLUS Loan for 2026–27 under the time‑limited Legacy exception if they apply before July 1, 2026?

No. The loan would need to be disbursed (paid) before July 1, 2026 and loans will not disburse for Fall 2026 until at least 10 day prior to the start of the full session in August. 

Does changing majors disqualify Parent PLUS borrowing under the Legacy exception?

No, as long as the student remains within the same program of study and same degree type at the same institution.

 

Example 1: The student changes from an Accounting major to a Business major at the same school. Both are Bachelor of Business Administration (BBA) degree programs, so the student has changed from one BBA program to another BBA program. This student stays within the bachelor's degree type, so they can change majors and are still enrolled in the same program of study for purposes of qualifying for the parent PLUS legacy limits.

 

Example 2: The student changes from the Veterinary Technology major (which is a BS degree) to the Healthcare Management major (which is a BBA degree) at the same school. This student stays within the bachelor's degree type (BS to BBA), so they can change majors and are still enrolled in the same program of study for purposes of qualifying for the parent PLUS legacy limits.

 

Example 3: The student changes from an associate's degree to a bachelor's degree at the same school. This student does not stay within the same degree type, so they have changed program of study and no longer qualify for the parent PLUS legacy limits.

The same applies if the student transfers from a bachelor’s degree to a master's degree.

 

Example 4 (Transfer Students): The student transfers from a BBA in Accounting from a college in NYC into a BBA in Accounting at SUNY Delhi. While this student stays within the same degree type, they are not enrolled in the same program of study at the same school and no longer qualify for the parent PLUS legacy limits.

 

What does the expected time to credential mean and how do I calculate it for the Legacy exception?

The Expected Time to Credential is the published length of your program by SUNY Delhi.  For example, an associate's degree is 2 years  and a bachelor’s degree is 4 years.

 

For students who are already enrolled, starting July 1, 2026, the legacy exception looks at how long the student is expected to need to finish their program. This expected time is whichever of the following is shorter:

  • Three academic years (as defined in federal regulations), OR
  • The time left in the student’s specific program, which is calculated by taking:
  • the full length of the published program, minus
  • the part of the program the student has already completed as of the date you make the determination.

Example 1:

The student is in a bachelor’s program that has a published program length of 4 years.

The student completes their first year at the end of 2025-26 and is scheduled to return for their second year in 2026-27.

According to the program length, they should be enrolled:

  • 2025-26 – Year 1  
  • 2026-27 – Year 2
  • 2027-28 – Year 3
  • 2028-29 – Year 4 (graduates)

The student's parents borrowed $20,000 in parent PLUS funds for the 2025-26 academic year.

Q1) Can the parent borrow under the legacy limits?

A1) Yes. The student’s parents would qualify for a PLUS loan under the interim exception.
This is because the student’s expected time to complete the credential is the lesser of:

  1. Three years, or
  2. The remaining length of the program, calculated as:
    • Total program length: 4 years
    • Time already completed: 1 year
    • Time remaining: 4 − 1 = 3 years

Since the remaining program length is 3 years, the borrower has 3 years of eligibility under the interim exception.

 

Q2) When would the parent no longer be eligible for the legacy limit?

A2) After the 2028-29 academic year. If this borrower enrolled in 2029-30, the interim exception would have expired and they would no longer be eligible for the exception. Additionally, this student would lose interim exception eligibility earlier if they withdrew or otherwise ceased to be enrolled in the program of study at any point after receiving the interim exception.

Q3) If the parents borrowed at least $65,000 aggregate in parent PLUS when the student reaches the period where they lose interim exception eligibility, what is the student’s eligibility for parent PLUS funds when the student returns to school at that time?

A3) During the student’s expected time to credential, the parents are not subject to the aggregate loan limit of $65,000; however, when the exception expires, the limit kicks in and looks at all that has been borrowed. If the parents borrowed at least $65,000 on the student’s behalf, they have exhausted their eligibility.

Academic Year

Period Enrolled

Interim Exception Status

2025-26

Year 1

N/A

2026-27

Year 2

Interim Exception Year 1

2027-28

Year 3

Interim Exception Year 2

2028-29

Year 4

Interim Exception Year 3

2029-30

Year 5 (if enrolled)

Exception expired – new loan limits apply
Will these changes impact my loans if I enroll in summer courses?

It could. Most changes are expected to go into effect by July 1, 2026 and depending on your situation, you may need to borrow under the new loan regulations.

How much should a parent borrow in a Parent PLUS loan under the new regulations?

On the Parent PLUS Loan application, parents should only select the “maximum amount” option if they wish to borrow the full $20,000 for the year.

To ensure adequate Parent PLUS Loan eligibility for the duration of the student’s undergraduate program, parents may request a lesser amount on the application.

For example, request $16,250 per year for total (aggregate) eligibility to be split equally for a four-year program.

Parent PLUS Loan Chart

What is NOT impacted by the new loan limit regulations?

The annual and aggregate loan limits for an undergraduate student (2, 4 and 5 year programs) are not changing.  The only part that is changing is if attending part-time, the loans are subject to the new part-time schedule of reduction.

The annual loan limit for Graduate Unsubsidized loans is not changing.  The only changes includes new limits to the aggregate and (new) lifetime limits, as well as being subject to the new part-time schedule of reduction.

Students may still qualify for loan forgiveness (through PSLF or TBF) under the new Repayment Assistance Program (RAP).

OBBBA Q&A: PART-TIME ENROLLMENT

Am I eligible for a loan if I attend part-time?

Yes, if taking at least 6 degree applicable credits. However, the amount you can borrow will change starting in 2026-27 based on the new Loan Schedule of Reduction regulation.

As of July 1, 2026, student that enroll part-time (less than 12 credits) or whose enrollment drops to part-time (from full-time), will need their loans reduced in accordance with changes to the law.

Students thinking of enrolling part-time or dropping a class should contact the One Stop to understand the implications first.

OBBBA Q&A: REPAYMENT

What are the changes to repayment for the Parent PLUS Loan?

Any federal Parent PLUS Loans borrowed on or after July 1, 2026 (including federal consolidation loans that include Parent PLUS Loans) can only be repaid under a single new, fixed repayment plan.

The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s).

• This applies to parent borrowers with existing Parent PLUS Loans who borrow a new loan on or after July 1, 2026.

•  Parents who currently have Parent PLUS loans in repayment and borrow a Parent PLUS Loan on or after July 1, 2026, will have all of their Parent PLUS Loans moved to the tiered standard repayment plan, potentially changing the monthly payment amount.

•  Current Parent PLUS Loan borrowers may repay their loans under the current repayment plans until their loans are fully repaid, but only if they do not borrow new Parent PLUS Loans on or after July 1, 2026.

•Parent PLUS Loan borrowers who consolidated their Parent PLUS Loans into a Direct Consolidation Loan before July 1, 2026, may repay their loans under the income-contingent repayment (ICR) plan through June 30, 2028, at which point that plan will sunset, and Parent PLUS Loan borrowers repaying under ICR will be moved to the income-based repayment (IBR) plan.

•Parents who want access to loan forgiveness for their Parent PLUS Loans must not borrow a new Parent PLUS Loan on or after July 1, 2026.

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What is a Federal Student Loan?

A federal loan, made through the William D. Ford Federal Direct Loan Program, allows eligible students and parents to borrow directly from the U.S. Department of Education. These loans typically offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. 

    • Federal Direct Subsidized Loan: A loan based on financial need. The government typically pays the interest that accrues while in school.
    • Federal Direct Unsubsidized Loan: This is similar to the Subsidized Loan, but without the financial need requirement. While the U.S. Department of Education pays the interest on a Subsidized Loan while you're in school, interest on the Direct Unsubsidized Loan will begin accruing from the date of disbursement and continues throughout the life of the loan.  Both undergraduate and graduate students may be eligible to borrow this loan.
    • Federal Direct Parent PLUS Loan: Direct PLUS loans can help pay for education expenses not covered by other financial aid. The U.S. Department of Education makes Direct PLUS Loans to eligible parents through schools participating in the Direct Loan Program.

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How to Apply for a Federal Student Loan

    1. Application: Submitting the annual Free Application for Federal Student Aid (FAFSA) will allow us to determine how much federal aid you are eligible for, including student loans.
    2. Accept or Decline Loan Offers: Eligible students will be notified by email when their student loan offer is available to view and accept/decline in Bronco Web.  We encourage students to borrow responsibilty and only borrow what is needed for their educational expenses.  Students have the option to borrow less than the offered amount.
    3. Loan Requirements: First time student loan borrowers must complete the following.  The school will be notified after completion.
      1. Entrance Counseling
      2. and a Master Promissory Note (MPN)
      3. Eligible returning borrowers, including transfer students who borrowed at a previous institution, typically only need to accept their loan in Bronco Web each year after completing the FAFSA.  
    4. Additional Loan Instructions: For step by step instructions, visit out Federal Direct Student Loan Instructions webpage.

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Eligibility

To be eligible for any Federal Direct Loan (subsidized, unsubsidized, or a PLUS loan), a student must:

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2025-2026 Interest Rates and Fees

To learn more about interest rates and fees, including  how interest is calculated, visit FSA's Interest Rate and Fees webpage.

Loan Type Borrower Type Interest Rate Origination Fee - subject to change after 10/1/2025
Direct Sub & Unsubsidized Loans Undergraduate 6.39% 1.057%
Direct Unsubsidized Loans Graduate 7.94% 1.057%
Direct Parent & Grad PLUS Loans Parent/Graduate 8.94% 4.228%

For more information on how interest is calculated and about loan fees, visit the Federal Student Aid (FSA) website.

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Student Loan Amounts

Annual Student Loan Amounts 

There is a limit to how much a student can borrow each year in the subsidized and unsubsidized loan.  Although students cannot borrow more than the amounts listed below, there is the option to borrow less than what was offered.
Borrower's Academic Level Dependent Student
(Sub + Unsub = Yearly Limit)		 Independent Student
(Sub + Unsub = Yearly Limit)

 1st Year Undergraduate Student
(0-29 earned credits)

 $3,500 + $2,000 = $5,500 $3,500 + $6,000 = $9,500

2nd Year Undergraduate Student
(30 - 59 earned credits)

 $4,500 + $2,000 = $6,500 $4,500 + $6,000 = $10,500
3rd Year Undergraduate Student
Bachelor's program only
(60 - 89 credits)		 $5,500 + $2,000 = $7,500  $5,500 + $7,000 = $12,500
4th Year Undergraduate Student
Bachelor's program only
(90 or more credits)		 $5,500 + $2,000 = $7,500 $5,500 + $7,000 = $12,500
Graduate/Professional Student Graduate students are
considered independent		 $20,500 (unsubsidized only)

2025-2026 Aggregate Student Loan Limits

There is a limit to how much a student can borrow in federal student loan that includes amounts borrowed at other institutions. 

Note: There will be new aggregate and lifetime limits starting in 2026-27 for Graduate Unsubsidized Loans based on the OBBBA Act and final negotiations.
Borrower's Program Level Subsidized + Unsubsidized = Aggregate Limit
 Dependent Undergraduate $23,000 + $8,000 = $31,000
 Independent Undergraduate $23,000 + $34,500 = $57,500
 Graduate/Professional $138,500 (unsubsidized only)

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Parent Plus Loan

NEW starting July 1, 2026 and pending future legislative changes as part of the OBBBA Act:

  • All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
  • Time-Limited Legacy Provision: If the student or parent borrower has a Federal Direct Loan made (disbursed) before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.

2025-2026 General Information:

This is a federal loan based on credit history that allows the eligible applicant to borrow up to the student's cost of attendance less other financial aid.  Parent borrowers must re-apply each year.

To qualify to apply for a Direct PLUS loan, the borrower must be:

    • The biological or adoptive parent of the student or
    • The spouse of the parent and your income and assets were reported on the FAFSA

To apply, the parent borrow must submit the online Parent PLUS Loan application that performs a credit check. This is considered a 'hard hit' that will show on the applicant's credit report.  The 2026-27 Parent PLUS Loan application is not expected to open until at least May 2026.

    • If credit is approved, the parent borrower will need to complete a Master Promissory Note (MPN). Unlike the PLUS loan application, the MPN typically only needs to be completed once. 
    • If credit is denied, the parent may still receive a Direct PLUS Loan through one of the options below.  
        • Obtain a credit-worthy endorser (co-signer)
        • Appeal the credit decision by submitting supporting documents if you have an extenuating credit history circumstance to the U.S. Department of Education.
    • If credit is denied and the parent does not wish to pursue obtaining a PLUS loan, the student may be eligible to increase their unsubsidized loan based on the Independent Loan Limit (above). Visit our Parent Loan Instructions page for instructions.

If the parent can otherwise document their inability to either borrow or repay a Parent PLUS Loan, the student may submit an Additional Unsubsidized Loan: Parent PLUS Loan Override Request in place of the PLUS Loan application.  If approved, the student may be eligible to borrow an additional unsubsidized loan based on the Independent Loan Limit (above). The student would need to give consent to borrow the additional loan.

Visit our Parent Loan Instructions page for step-by-step application instructions.

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Loan Adjustment Requests

Student loan borrowers may adjust (increase or decrease) the amount they wish to borrow.  Below are several options:

    • If the subsidized or unsubsidized loan has not been accepted (or declined) in Bronco Web, the student may use the drop down option and select 'Reduce'. 
      • Type in the lower amount that the student wishes to borrow and click 'submit'. 
      • These amounts will typically be split equally between the fall and spring semester.
      • Alternatively, the student may choose 'decline' to opt-out of borrowing any portion of that loan. 
      • Follow our Federal Direct Student Loan Instructions webpage for step-by-step instructions.
    • If the subsidized or unsubsidized loan has already been accepted (or declined) in Bronco Web:
      • Submit a Loan Adjustment Request in the Student Forms Portal. 
      • Alternatively, the student may provide a detailed and signed statement with their request to adjust the loan, send an email from their Delhi email, or visit SFS in-person to submit their request.
    • For adjustments to a Parent Plus Loan, the parent borrower must either
      • Submit a Loan Adjustment Request in the Student Forms Portal (the student logs in to begin the form and invites the parent to sign) or
      • Provide a detailed and signed statement with their request to adjust the loan.
    • If the loan has already disbursed, depending on the timing,
      • the student may request to have the loan reduced by following the steps above to submit a Loan Adjustment Request in the Student Forms Portal.
      • If the student or parent were issued a refund from the loan, a payment may be made directly to the assigned Loan Servicer once the loan has fully disbursed.

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Deadlines

Typically, all federal loans must be applied for and processed before the semester ends, dropping below half-time (6 credits), or no longer attending; whichever comes first. To avoid disqualification from borrowing, complete the steps to borrow a loan, including resolving any outstanding requirements, before each semester begins.

This deadline includes requests for a new loan or to increase an existing loan.

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Private Student Loans

Unlike federal student loans, private loans are made by a bank and the terms of the loan are determined by the lending institution. Private loans are typically based on credit history and students typically are required to have a credit-worthy co-signer.

Things to consider!

    • Federal loans offer benefits such as fixed interest rates and several repayment plans that are not typically offered by private lending institutions.
    • Also, private loans can end up costing you more than a federal student loan.
    • Research and compare several banks before borrowing to find the best option for you.

Use FastChoice Private Lending for Higher Education to help you find a lender based on our history of student loan borrowers or you can explore other lending opportunities outside of this platform.

You can find and complete the Private Loan Self-Certification Form found on our forms page. 

SUNY Delhi does not participate in a Preferred Lender Arrangement or use a preferred lender list.

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Repayment

Understanding the details of repayment on your federal student loan can save you time and money. It is important to know when repayment begins, what payment plan options you have, how to make a payment, and how to pay off your loans faster.

Once you graduate, drop below half-time enrollment, or leave schofol, your federal student loan goes into repayment. However, if you have a Direct Subsidized or Direct Unsubsidized loan, you have a one-time six-month grace period before you are required to start making regular payments.

Parent PLUS loans will go into repayment as soon as the loan is fully disbursed—which means once it’s paid out to SUNY Delhi (typically during the spring semester for full year loans). Parents may request a deferment by contacting their Loan Servicer.

To prepare for repayment, it is very important that students and parent borrowers keep their contact information up-to-date in their Studentaid.gov account.  Loan services usually reach out with updates regarding repayment or if your loans are being transferred to a new servicer.  

Repayment Resources:

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