Federal Financial Aid Changes

The term “legacy provisions” in the context of changes effective July 1, 2026 most commonly refers to grandfathering rules that allow individuals (particularly federal student loan borrowers) to continue under existing rules rather than the new rules that take effect on that date.

• Legacy Borrowers: Students who already have a Federal Direct Loan disbursed before July 1, 2026 and are enrolled in the same program at the same institution may continue to borrow under the old (pre-July 1, 2026) loan limits — including Grad PLUS — for up to three academic years after that date or until they complete their program, whichever is shorter.
• Legacy Parent Plus Provision: Parents who borrowed Parent PLUS before July 1, 2026 for their dependent’s current program may continue borrowing under the old, higher limits for up to three academic years or until the dependent finishes that program.
• Legacy Loan Limits provisions: let current borrowers continue under their previous aggregate limits for a transitional period if they had a Direct Loan disbursement before July 1, 2026.
• Legacy Repayment provisions: let borrowers with only loans disbursed before that date remain in existing repayment plans (like IBR, PAYE, REPAYE, or SAVE) until as late as July 1, 2028, before transitioning.

Absolutely! Federal Unsubsidized Loans will continue to be available, and new private lending opportunities are being developed 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 and continue borrowing before July 1, 2026, you’ll retain eligibility for Grad PLUS Loans during the transition period. Staying on track with your current program means you can keep focusing on what matters most — your growth as an artist.

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

• Example 1: The student changes from a history major to an English major at the same school. Both are bachelor of arts (BA) degree programs, so the student has changed from one BA program to another BA 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 an English major (which is a BA degree) to an engineering major (which is a bachelor of science, BS, degree) at the same school. This student stays within the bachelor’s degree type (BA to BS), 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.

Example 1: The student changes from a history major to an English major at the same school. Both are bachelor of arts (BA) degree programs, so the student has changed from one BA program to another BA 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.

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.

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

For example:

• If full-time enrollment is 12 credits and you take 9 credits (75% of full-time), you may receive up to 75% of your annual loan eligibility.
• If you take 6 credits (50% of full-time), you may receive up to 50% of your annual eligibility.

Full-time enrollment at the Academy is defined as:

• 12 units for Undergraduate Programs
• 9 units for Graduate Programs

Yes. Most federal student loans require at least half-time enrollment (typically 6 credits per semester for undergraduate students). Students enrolled less than half-time are not eligible for federal student loans.

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.