If you’re currently enrolled and participating in the student and/or parent loan programs at UNCSA, there are no changes to the aid you’ve already received.

If you borrowed a federal student loan at UNCSA for a term that began before July 1, 2026, you remain eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter), including Graduate PLUS loans.

If your parent borrowed a Parent PLUS loan at UNCSA for a term that began before July 1, 2026, your parent remains eligible to borrow under the previous loan limits for the duration of your current program or for three years (whichever is shorter).

To be eligible for the previous loan limits (including Grad PLUS), you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.

Changes to your enrollment, such as dropping a class, may affect your federal student loan eligibility. Even if your current semester loan is not adjusted, your remaining eligibility for future terms may be reduced. At the University of North Carolina School of the Arts, we encourage you to contact the Office of Student Financial Aid before making schedule changes.

Because loans are managed across the academic year, changes to your enrollment — especially during the term — may impact future funding, even if your current loan does not change.

Example:

• Fall: Enrolled in 12 credits (full-time)
• You drop a course later in the term and finish at 9 credits (¾-time)

Depending on when the class is dropped:

• Your fall loan may remain unchanged (if funds have already been disbursed and no adjustment is required)

However —

• Spring: Enroll in 12 credits (full-time)

Your spring loan eligibility may be reduced because:

• Annual loan limits are applied across the full academic year
• Your fall enrollment level (¾-time) may result in a recalculation of total eligibility

Important: Even if your fall loan is not adjusted, dropping a class can reduce how much loan funding remains available for the spring term.

• Timing matters when making schedule changes
• Dropping a class may not immediately affect your aid—but it can impact future disbursements
• Always check with Financial Aid before making enrollment changes

The new law does not change the annual or aggregate loan limits for undergraduate students, although undergraduate loans will now count towards the new lifetime limit.

Annual loan limit $5,500-$12,500 based on year in school and dependency status.
Aggregate loan limit $31,000-$57,500 based on dependency status.
New lifetime loan limit of $257,500 includes student borrowing for undergraduate, graduate, and professional study without regard to any amounts repaid, forgiven, canceled, or otherwise discharged.

Yes, but starting in the 2026–27 academic year, new limits apply:

Parents will be capped at $20,000 per year and $65,000 lifetime in PLUS borrowing per student. If both parents borrow on behalf of the same student, their combined borrowing is capped at $20,000 per year and $65,000 lifetime.

If you already have Parent PLUS Loans, you are eligible to borrow under the previous loan limits for the remainder of your student’s program or three years, whichever is shorter. Your student must remain continuously enrolled in their current program. If they take a leave of absence or don’t complete a term, you will be considered a new borrower and subject to the new limits.

Yes. Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on (APP-25-23) 2026–27 FAFSA Form and Pell Grant Eligibility Updates.

No. The new law does not change how students qualify for Federal Work-Study. At this time, Work-Study eligibility will continue to be based on financial need as determined by the FAFSA and UNCSA packaging policies. UNCSA will still decide how much Work-Study funding is available and which students are offered it.

No. For an undergraduate student to borrow additional unsubsidized loan funds, exceptional circumstances (such as an adverse credit history) must prevent their parent from borrowing a PLUS Loan. Reaching the aggregate borrowing limit is not an exceptional circumstance.

You may be able to, but private loans have different terms and should be considered carefully.

Grad PLUS Loans are being phased out under the new law.

New graduate and professional students will no longer be eligible to borrow Grad PLUS for terms that begin on or after July 1, 2026.

If you’re already borrowing Direct Loans before July 1, 2026, you may borrow Grad PLUS. To be eligible, you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.

Starting in the 2026–27 academic year, new federal loan limits will apply to graduate students:

• Graduate students will be limited to $20,500 per year in unsubsidized loans.

The lifetime cap for graduate-level borrowing will be $100,000, not including any undergraduate loans. If you borrowed before July 1, 2026, you remain eligible for the previous loan limits.

Grad PLUS will no longer be available to new borrowers starting in 2026-27, so it's important to explore other funding options early. These may include: 

• A historical list of private education lenders used by UNCSA students
• Employer-sponsored education benefits or public service programs
• Monthly payment plans through the UNCSA Student Accounts office
• External scholarships or fellowships

No, federal loan and aid changes under the new law will not affect your UNCSA scholarships. Scholarships are awarded and renewed based on university policies and program criteria. If changes to federal aid affect your overall funding, we encourage you to contact financial aid to review other possible options.

Most changes take effect starting with the 2026–27 academic year. That includes new loan limits, the phase-out of Grad PLUS, and changes to Pell Grant eligibility.

We’ll post updates on this website as new details become available. You can also:

• Contact financial aid with questions about your specific situation.
• Monitor announcements from the U.S. Department of Education at https://studentaid.gov/announcements-events/big-updates