"Student loan borrowers are facing major changes to federal education lending that start this year," Money reports.

... "What’s more, the specifics of how all the new policies will actually work are still being ironed out — even though many take effect this summer. Jill Desjean, director of policy analysis with the National Association of Student Financial Aid Administrators (NASFAA), says the organization is 'very mired in the details' to ensure financial aid officers can give families concrete information — 'we’re dealing with all the 'what ifs' right now,' she adds."

... "New students enrolling in the 2026-27 academic year will have to abide by the limits immediately. Current borrowers have a legacy provision that allows most to borrow under the old rules for up to three years."

"Under the new limits, some graduate students may have to turn to private loans, which haven’t played a big role in the grad school space recently because of the availability of federal loans, says Desjean with NASFAA."

"'That's a new wrinkle,' she says, adding that she anticipates a wave of fresh products from private lenders to meet the new demand."

"What to do now: Current students should talk with their financial aid officer ahead of next academic year to make sure they understand the details around continued eligibility."

"'Knowing that you have access to those federal loans instead of assuming is always preferable,' Desjean says."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 1/6/2026