2026-27 Financial Aid Changes

Federal student loan changes

Most federal loan changes will impact:

• Graduate/professional students
• Parents of undergraduate students
• Students enrolled less than full-time

If you plan to use federal loans in 2026-27 or later, review the updates below.

Graduate students

New federal legislation (the "One Big Beautiful Bill" Act) introduces major changes starting July 1, 2026.

What's changing?

1. Graduate PLUS Loans Ending for New Borrowers

• After July 1, 2026, new graduate students will no longer be able to use Graduate PLUS Loans
• This means you may not be able to cover your full Cost of Attendance (COA) with federal loans alone

2. New Loan Limits

• Graduate Programs (Master's, PhD, etc.)
  • Annual limit: $20,500 (no change)
  • Lifetime limit: $100,000
• Professional Programs (e.g. Clinical Psychology)
  • Annual limit: $50,000
  • Lifetime limit: $200,000

Note: The Department of Education is still finalizing which programs qualify as “professional.”

Legacy provision (important)

You may keep current loan benefits (including Grad PLUS) for up to 3 more years if:

• You were enrolled in the same program before July 1, 2026, AND
• You previously borrowed a federal loan for that program

You could will lose this eligibility if you:

• Change programs or start a new degree
• Take a break in enrollment after July 1, 2026

Parents of undergraduate students

Changes to Parent PLUS loans also begin July 1, 2026.

New limits

• Annual limit: $20,000 per student
• Lifetime limit: $65,000 per student

Previously, parents could borrow up to the full cost of attendance. Now, families may need to plan for other options if costs exceed these limits

Legacy provision

Parents may continue borrowing under current rules (up to full cost of attendance) for up to 3 more years if:

• The student is in the same program as before July 1, 2026, AND
• The parent previously borrowed a Parent PLUS loan for that student

All students

New lifetime loan limit

• Total federal loan limit: $257,500
• Includes all federal loans (undergraduate + graduate)

Loan proration (new)

Starting July 1, 2026:

• Loan amounts will be based on your enrollment level
• You must be enrolled at least half-time
• If you take fewer credits, your loan eligibility will be reduced proportionally

Example (Graduate Student):

• Full-time= 6 credits per quarter
• 24 credits per year total

If you take:

• 6 credits— eligible for 25% of annual loan per quarter
• 3 credits— eligible for 12.5% of annual loan per quarter

We are awaiting final federal guidance on exact proration details.

Pell Grant changes

Starting July 1, 2026:

• You will not receive Pell Grant funds if your scholarships/waivers already cover your full cost of attendance.
• You may also lose eligibility if your Student Aid Index (SAI) is too high (at least twice the maximum Pell Grant)

Washington State aid changes

Washington State is reducing financial aid for students attending private colleges.

What's changing?

In 2025, the Washington State Legislature passed SSB 5785, a bill that will significantly reduce the Washington College Grant and the Washington College Bound Program.

• Washington College Grant: Starting in the 2026-2027 academic year, Washington state has significantly reduced the maximum Washington College Grant amount for students attending private not-for-profit colleges
• College Bound Scholarship: In the 2027-2028 academic year, the state will also significantly reduce the amount of aid given to students in the Washington College Bound program for students attending private not-for-profit colleges.

Estimated maximum grant changes 

What this means for you

• If you receive both WA College Grant and College Bound, your total state aid will stay about the same in 2026-27
• Starting in 2027-28, total aid will drop significantly due to reductions in College Bound funding
• If you receive less than the maximum award, your reduction will be proportional

Support for current students

We understand these changes may create financial challenges for many students and families.

Seattle Pacific University is actively working with our Board of Trustees, university leadership, and donors to launch a giving campaign aimed at helping offset these funding reductions over the next three years.

If you are interested in supporting current students through this effort, you can learn more and make a gift here: