Federal Financial Aid Changes

For most students, the changes will not affect 2025–2026. However, to remain under the current (old) loan rules, you must be enrolled in your program as of June 30, 2026, and receive at least one federal loan for that program before July 1, 2026. If you are a new student beginning Summer 2026 and do not receive a loan before July 1, 2026, you will be subject to the new rules.

The Academy expects students will continue to have access to a variety of financing options, including federal aid, private loans, payment plans, and scholarships.

Absolutely! Federal Unsubsidized Loans will continue to be available, and new private lending opportunities are available to help you invest in your creative education. You’ll still have ways to fund your studies and keep your artistic goals within reach.

Yes! As long as you remain in the same program of study, remain continuously enrolled, have not exceeded time to credential and have borrowed before July 1, 2026, you’ll retain eligibility for Grad PLUS Loans during the transition period.

Yes! Students who were enrolled in a program of study as of June 30, 2026, borrowing any type of Direct Loan (subsidized, unsubsidized, or PLUS) for that program at that institution prior to July 1, 2026, qualifies the student for the graduate PLUS Loan legacy provision.

For purposes of 34 CFR 685.203(f) and (g), an undergraduate student who changes majors within the same degree or certificate type shall be considered to be enrolled in the same program of study.

For graduate students, a change of major or concentration within the same 4-digit Classification of Instructional Programs (CIP) code, at the same credential level, and at the same institution is also considered the same program of study. Moving to a different 4-digit CIP code constitutes a change in program of study.

It can if the student changes degree level or program type. Make sure to check with your SFSR and Student Services Advisor before changing programs.

We expect students will continue to have access to funding that supports the full cost of attendance. Final terms will depend on updates from lenders, but our priority is ensuring you have the financial tools and guidance needed to stay focused on your creative development and professional success.

If the student received any federal loan before July 1, 2026, the student remains eligible to borrow under the old loan limits, even if a Parent PLUS loan was not previously borrowed. If all other requirements are met.

Parent borrowers who take out a PLUS loan on or after July 1, 2026 will not have access to any Income-Driven Repayment (IDR) plans and will not be eligible for legacy provisions if this is their first time borrowing.

There are no legacy provisions for repayment plans. If a borrower receives any federal loan on or after July 1, 2026, they may only use the new repayment plans. Only borrowers with no loans dated July 1, 2026 or later may remain on existing repayment plans.

Your loan eligibility is reduced in direct proportion to your enrollment level.

For example:

• Full-time enrollment for undergraduate programs is 24 credits (12 credits Fall and Spring):
  • If you take 18 credits (75% of full-time), you may receive up to 75% of your annual loan eligibility.
  • If you take 12 credits (50% of full-time), you may receive up to 50% of your annual loan eligibility.
• Full time for graduate programs is 9 units

If you reduce your enrollment:

• Your loan eligibility may be adjusted.
• Future loan disbursements may be reduced or canceled.
• You may be required to return a portion of previously disbursed funds, depending on the timing of the change. Contact Student Financial Services prior to adjustments to ensure you understand the impact and if it will increase your balance.

If you increase your enrollment level and have remaining eligibility, your loan amount may be adjusted accordingly, depending on federal limits and available funding.

Loan proration requirements primarily apply to federal student loans. Private loan policies vary by lender.

Yes. Because you are borrowing a reduced amount, your total repayment obligation (including interest) will generally be lower.

You’re not alone — the Office of Student Financial Services at Academy of Art University is here to help you every step of the way by calling 415-618-6190 or email us at sfs@academyart.edu. Whether you’re exploring new options or planning for next year, our team is ready to help you build a smart financial path toward your artistic future.