"A raft of federal-policy changes kick in today. Some that have received relatively little attention could still make a big difference for students and colleges. And one closely watched change was just tweaked," The Chronicle of Higher Education reports.

... "But there are caveats that could surprise borrowers, Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators, told the Daily Briefing:"

• "Returning parent borrowers are subject to the new limits for any student they haven’t used the loans to support before."
• "Parent PLUS borrowers lose access to income-based repayment for all of their PLUS loans if they take out any more after today. 'Once that’s done, it’s done,' Desjean said."

"Part-time students’ loans are now prorated. There are no legacy exceptions for this change, and aspects of it might be confusing, Desjean said."

• "The proration applies to the disbursement after a student is enrolled part-time, meaning they can borrow less for the next term."
• "It affects students who might not consider themselves part-time. Students who dip below a full load after dropping a class will be affected. Colleges should make sure professors and advisers understand that, Desjean said."

... "Remember, these designations could change again. The department said its definition is legal and plans to fight for it. 'We got some clarity, and the clarity just raises a million more questions,' Desjean said."

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: 7/1/2026