Important Federal Student Loan Changes

Chatham is sharing this information to help current and prospective students understand what may change, how those changes could affect future borrowing, and where to get support. 

These changes are based on federal legislation and ongoing rulemaking related to the One Big Beautiful Bill Act (OBBBA), which made several changes to the federal loan program (effective July 1, 2026), including: 

• The Graduate PLUS Loan program is ending for all new loans. 
• Programs defined as graduate will be subject to a $20,500 annual loan limit and a $100,000 aggregate limit
• Programs defined as professional will be subject to a $50,000 annual loan limit and a $200,000 aggregate limit
• These limits are for federal loans only. Private loans are still available.  

The U.S. Department of Education is finalizing the definition of “professional degree programs” for federal loan purposes. A federal advisory committee recommended narrowing the definition of programs to a limited set of fields, including Clinical Psychology, Law, Medicine, Dentistry, Pharmacy, Veterinary Medicine, and a few other programs.

As currently defined, this definition would exclude many health-related master’s and doctoral programs (such as nursing, physician assistant, physical therapy, occupational therapy, and social work), meaning those students would be subject to the lower graduate borrowing limits. 

Because this rulemaking is still in progress, program classifications and, therefore, borrowing limits may change. Chatham will update this page as federal guidance is finalized or more details are known.  

What's changing

Beginning July 1, 2026, the federal Graduate PLUS Loan program is expected to be eliminated for new borrowers, subject to any limited exceptions or clarifying federal guidance. For many students, this means federal borrowing may no longer cover the full cost of attendance.   

New federal borrowing limits are expected to apply to new borrowers.
Students who do not receive a qualifying federal loan disbursement before July 1, 2026, are expected to be subject to new Direct Unsubsidized Loan limits: 

• Chatham’s PsyD in Counseling Psychology: $50,000 annual federal loan limit and $200,000 aggregate federal loan limit 
• All other Chatham graduate programs: $20,500 annual federal loan limit and $100,000 aggregate federal loan limit 
• Combined graduate and professional federal borrowing: $200,000 maximum 
• A broader lifetime federal student loan cap of $257,500 applies in certain cases, excluding Parent PLUS loans borrowed on a student’s behalf.   

Beginning July 1, 2026, new borrowers enrolled less than full-time may be eligible only for a prorated federal loan amount based on enrollment status. Additional federal guidance is still expected. 

What this may mean for Chatham students

Depending on your program, enrollment status, and borrowing history, these federal changes may affect the amount you can borrow from the federal government and the options available to you. At Chatham, this distinction is especially important because, under the current professional program definitions used by federal departments, the Doctor of Counseling Psychology (PsyD) would be designated as a professional degree program and treated differently from other graduate programs for federal borrowing limit purposes.

Current students who expect to borrow before July 1, 2026 

Students who receive eligible federal loan disbursements before July 1, 2026, and remain in the same academic program may qualify for transition, or “legacy,” treatment under the law for a limited period. Reported summaries indicate that continuing borrowers in the same program may be able to continue borrowing under prior rules through June 30, 2029, or until program completion, whichever comes first.

Students in the Doctor of Counseling Psychology (PsyD) program  

Students enrolled in Chatham’s Doctor of Psychology (PsyD) in Counseling Psychology should expect the higher professional-program federal Direct Unsubsidized limits for new borrowers after July 1, 2026: $50,000 annually and $200,000 in aggregate, based on the current classification being used. 

Students in other Chatham graduate programs 

Students enrolled in Chatham graduate programs that are not classified as professional programs (i.e., every program except PsyD) should expect the lower federal Direct Unsubsidized limits for new borrowers after July 1, 2026: $20,500 annually and $100,000 in aggregate. 

Students whose cost of attendance exceeds federal loan limits 

If your educational costs exceed the applicable annual federal borrowing limit, you may need to explore other ways to finance your education, including payment plans, employer tuition benefits, outside scholarships, or private educational loans, as appropriate. This is especially important for students who previously expected federal loans to cover the full cost of attendance. Chatham’s graduate financial aid pages direct students to funding opportunities and loans/payment options for planning purposes. 

Students enrolled less than full-time 

Students who attend less than full-time may see reduced federal borrowing eligibility under the new proration rules for new borrowers. 

What Chatham students can do now

• Review your borrowing needs for the remainder of your program.
• Complete the FAFSA and work with Chatham’s Office of Financial Aid on next steps. 
• Contact Financial Aid to discuss your individual timeline, eligibility, and options.
• Plan early if you expect to need funding beyond the new federal loan limits. Chatham’s financial aid office notes that award information is delivered through its eAward system after FAFSA receipt.