New H.R.1 Bill loan limits took effect on July 1, 2026, with a legacy provision included for borrowers who borrowed under previous limits for the remainder of their program of study. Legacy student borrowers will be allowed to borrow under the previous student loan limits. Note: Details on handling legacy provisions for legacy borrowers are still in progress.
Learn more about legacy provisions, who qualifies, and how to maintain eligibility.
What are the “legacy provisions”?
Legacy provisions allow certain current students who were already using federal loans before the new regulations took effect to maintain their previous loan eligibility. These provisions generally last for up to three additional academic years or until the end of the program, whichever is sooner.
Who qualifies for legacy provisions?
To qualify under the legacy provisions, current students must:
- Have been enrolled in a program of study as of June 30, 2026,
- Continue in that program after July 1, 2026, without exceeding the published program length, and
- Have received the loan disbursement prior to July 1, 2026.
For students beginning a program in Fall 2026, you would generally not qualify for legacy provisions, because legacy loans had to be disbursed before the July 1, 2026 cutoff.
What is required to maintain eligibility for the legacy provisions?
To maintain eligibility for the legacy provisions, you must remain continually enrolled in your program, complete your degree within the lesser of the program’s standard scheduled length based on full-time enrollment (time to credential) or three years.
What happens if I’ve been eligible for legacy provisions but can’t complete my program in the time allotted?
If you are behind pace to complete your program in alignment with the program length, you could lose legacy status before you complete the program. For example, if it is a two-year program, and you are currently in year two but need to take another year to finish, you would lose eligibility for year three.
If I move from an undergraduate to a graduate program, do I keep my legacy status?
No. If you change your program of study from undergraduate to graduate, legacy provisions expire.
Am I still eligible for Public Service Loan Forgiveness (PSLF)?
As of now, the Public Service Loan Forgiveness Program is still available for qualifying legacy borrowers; it is not an option with private loan borrowing.
Do I keep my legacy status if I take out a new federal student loan?
Legacy provisions for loan limits: As long as you maintain eligibility to borrow under the legacy provisions, you will be eligible to borrow federal Direct Loans under the prior limits. For example, a student who previously only borrowed unsubsidized loans may still take out a Grad PLUS loan, if eligible, if they have maintained their legacy status.
Legacy loan repayment plans: Note that there are also “legacy plans” that apply to repayment plans. With legacy repayment plans, if you take out a new federal student loan after July 1, 2026, you will no longer be eligible to repay that loan under the legacy repayment plan. However, students can continue to borrow under the previous limits if you qualify for the interim exception from the new loan limits.