Loans are available from federal or private sources. Federal loans offer low interest rates and flexible payment schedules. If your needs aren't fully met by federal programs or scholarships, commercial banks can provide additional assistance although it frequently comes with high interest rates.
Federal Educational Loan Programs
The following Federal loan programs are available. To qualify for Federal loans, students must complete the FAFSA (Free Application for Federal Student Aid).
Alternative Educational Loans
Alternative or private student loans are funded by lenders such as banks and credit unions. While Federal loans are preferred; if you have exhausted that option you can turn to the private sector for additional loans. These loans are made to the student, based on credit approval and other factors, and usually require a co-signer. Do your homework and get the facts. Information on these types of loans, along with some rates from our preferred lenders is provided here.
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Federal Student Aid Changes Beginning July 1, 2026
Beginning July 1, 2026, changes to federal student aid under the One Big Beautiful Bill Act (OBBBA) will affect how some students and families borrow to help pay for college.
These updates may affect:
• undergraduate families using the Parent PLUS Loan
• graduate students using the Grad PLUS Loan
Saint Mary’s College is sharing this information so students and families can better understand these changes and plan ahead for the 2026–2027 academic year.
Undergraduate Students
Current/Legacy Borrowers
To help prevent disruption for current students, Congress included a provision allowing parents who borrowed a Parent PLUS Loan prior to July 1, 2026 to continue using the loan program, with certain restrictions.
Current/Legacy Borrowers (borrowed before July 1, 2026)
Annual Limit Up to Cost of Attendance (COA) minus other aid
Lifetime Limit None (subject to credit check)
Repayment Access to Income-Contingent Plan (via consolidation)
Protection Valid for three (3) additional academic years or degree completion. Note: The student must remain continuously enrolled in the same program at Saint Mary’s College to maintain this status.
Check Your Status
Log in to StudentAid.gov to review your loan history. If you have an active Parent PLUS Loan, you may already qualify as a Legacy Borrower.
New Borrowers
For all new parent borrowers who take out their first Parent PLUS Loan on or after July 1, 2026, the U.S. Department of Education is instituting new restrictions on borrowing:
New Borrowers (first loan on/after July 1, 2026)
Annual Limit $20,000 max per year per dependent student
Lifetime Limit $65,000 max per dependent student
Repayment Standard Plan Only
Graduate Students
Federal Direct Grad PLUS Loan
New graduate borrowers will no longer be eligible for the Federal Direct Grad PLUS Loan.
Students who borrowed a Grad PLUS Loan prior to July 1, 2026 may still have the option to use the Grad PLUS Loan for an additional three years or until the end of their program, whichever comes first.
Check Your Status
Log in to StudentAid.gov to review your loan history. If you have an active Grad PLUS Loan, you may already qualify as a Legacy Borrower.
Federal Direct Unsubsidized Loan
New graduate borrowers will be eligible for up to $20,500 per year through the Federal Direct Unsubsidized Loan, with a lifetime limit of $100,000.
Students enrolled in an eligible professional degree program will be eligible for up to $50,000 per year, with a lifetime limit of $200,000.
Additionally, the U.S. Department of Education has narrowed the definition of “professional” degree programs to a limited number of programs, including Pharmacy, Medicine, and Law.
Plan for the Gap
If this will be your first time borrowing through the Parent PLUS Loan or Grad PLUS Loan, begin estimating your potential funding gap now.
Review your financial aid offer and compare the aid available to your total educational costs. If your remaining balance exceeds the amount available under the new federal loan limits, Saint Mary’s financial aid counselors can help you explore options and create a financing plan that works for your situation.
Additional Information
Additional information about OBBBA and its impact on federal student aid will be posted here as more guidance becomes available.