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To qualify for any federal loan in 2026, students must be U.S. citizens or eligible non-citizens, enrolled at least half-time (usually 6 credits), and maintain Satisfactory Academic Progress (SAP) as defined by their specific institution.

Federal Direct Stafford Loans

Stafford Loans remain the primary federal borrowing tool for 2026. For the 2025-2026 academic year, the fixed interest rate is 6.39% for both subsidized and unsubsidized loans.

• Subsidized: Available only to undergraduates with demonstrated financial need. The government pays the interest while you are in school.
• Unsubsidized: Available to both undergraduate and graduate students regardless of financial need. Interest begins accruing as soon as the loan is disbursed.
• Proration Rule: Starting in July 2026, if you are enrolled less than full-time, your loan amount will be prorated (e.g., half-time students may only receive 50% of the annual limit).

Federal Direct PLUS Loans

The PLUS loan program has undergone the most drastic changes for the 2026-2027 school year:

• Parent PLUS Loans: Parents of dependent undergraduates can still borrow, but for the first time, there is a $20,000 annual cap per student and a $65,000 lifetime cap. Previously, parents could borrow up to the full cost of attendance.
• Graduate PLUS Loans: This program is being phased out. As of July 1, 2026, new graduate students can no longer take out Graduate PLUS loans. They must instead rely on the increased Stafford Unsubsidized limits ($20,500 for most; $50,000 for professional degrees).

Satisfactory Academic Progress (SAP)

In 2026, schools are strictly enforcing SAP. To stay eligible for loans, you typically must:

• Maintain a cumulative GPA of 2.0 or higher.
• Complete at least 67% of the courses you attempt.
• Finish your degree within 150% of the published timeframe (e.g., 6 years for a 4-year degree).

For more information about the types of Federal Student Aid available, please click here.