{"id":559,"date":"2026-06-07T16:31:20","date_gmt":"2026-06-07T16:31:20","guid":{"rendered":"https:\/\/sanantoniomovingreport.com\/?p=559"},"modified":"2026-06-07T16:31:20","modified_gmt":"2026-06-07T16:31:20","slug":"federal-student-loan-changes-cause-delays-recalculations-and-uncertainty-for-students-and-universities","status":"publish","type":"post","link":"https:\/\/sanantoniomovingreport.com\/?p=559","title":{"rendered":"Federal student loan changes cause delays, recalculations and uncertainty for students and universities"},"content":{"rendered":"<div>\n<p>Manual calculations, recalculations, careful documentation and delayed award letters. <\/p>\n<p>Read more <a href=\"https:\/\/sanantoniomovingreport.com\/?p=557\">\u2018San Antonio has a culture like no other\u2019: Spurs\u2019 Finals run creates economic opportunity<\/a><\/p>\n<p>This is the latest new normal for financial aid officials across higher education institutions after changes to federal loans by the Department of Education.\u00a0<\/p>\n<p>Changes to federal financial aid take effect on July 1, but with official rules and FAQs being issued only weeks ago, the entire process has been delayed by months. Financial aid award letters that would have normally gone out in February are just now hitting students\u2019 mailboxes.<\/p>\n<p>\u201cIt\u2019s the end of May and we\u2019re getting that out now,\u201d said Marivel Ojeda, Director of Financial Assistance at St. Mary\u2019s University. \u201cStudents are already doing their [enrollment and housing] deposits and they\u2019re moving into that status and it\u2019s kind of scary that they\u2019re giving deposits without knowing what their full financial aid picture is like.\u201d<\/p>\n<p>Under the Trump Administration\u2019s One Big Beautiful Bill Act, the Department of Education is phasing out Graduate PLUS loans, or Direct PLUS loans, which were federally subsidized or unsubsidized loans for students entering graduate programs.\u00a0<\/p>\n<p>Federal officials have also implemented new loan limits for undergraduate and graduate students plus new loan disbursement rules, new annual and lifetime borrowing caps based on the degree a student is pursuing and new repayment options for those who took out federal loans in the past.<\/p>\n<p>These changes, coupled with the delays in issuing rules, have contributed to students getting unclear answers on financial aid awards. At St. Mary\u2019s, university officials began including disclaimers, letting students know that the delayed financial aid offer they are getting might not be final.<\/p>\n<p>\u201cPlease note that your enclosed initial financial aid award letter is based on the standard annual federal loan limits. However, these amounts remain subject to change pending our review of your individual aggregate federal loan limits and borrowing history,\u201d the disclosure states.\u00a0<\/p>\n<p>Ojeda is far from alone in her concerns. The National Association of Student Financial Aid Administrators issued a statement in late April after the Department of Education reversed its earlier decision on whether or not Grad PLUS loans would count toward the lifetime borrowing cap of $257,500 for all federal direct loans established under the One Big Beautiful Bill Act.\u00a0<\/p>\n<p>\u201cWhen significant policy changes are rolled out without clear, formal and widely distributed guidance, there are severe consequences that directly affect students who need definitive answers now in order to make plans to pay for college,\u201d said NASFAA President and CEO Melanie Storey in a news release.\u00a0<\/p>\n<p>With limited time to adjust their processes and conflicting guidance from federal officials, Ojeda resorted to the lessons she learned during the confusing 2024 Free Application for Federal Student Aid (FAFSA) changes rollout, which was full of glitches. Like with FAFSA, Ojeda chose to self-document every decision based on that day\u2019s information.<\/p>\n<p>\u201cWe\u2019re having to manually review these students, and that\u2019s so scary because manual review can always [have] human error,\u201d Ojeda said. \u201c[We are] documenting everything that we\u2019re looking at, printing out what we see on the government website so that if we come back and it changes, we say, \u2018Well, on this day, this is what we [saw].\u2019\u201d<\/p>\n<p>Federal officials have advertised these changes as a way to make sure students don\u2019t take on more debt than necessary, adding that current outstanding U.S. student loans total nearly\u00a0$1.7 trillion and nearly 25% of borrowers are in default. But local financial aid officials say their job has always focused on helping students get to the finish line: graduation.<\/p>\n<p>\u201cAccess, affordability and completion is still our reason to do what we do,\u201d Ojeda said. <\/p>\n<h4>Courses start while confusion persists<\/h4>\n<p>University of the Incarnate Word Financial Aid Director Cristen Alicea said the final regulations came in as some of her students were starting courses and others were sending in questions regarding the changes that will become effective in July.\u00a0<\/p>\n<p>\u201cWe\u2019re trying to interpret hundreds of pages of regulations in like a month before implementation and trying to answer students\u2019 questions,\u201d Alicea said. \u201cAnd just because some thing is written in the law, it doesn\u2019t mean you have what you need to really be able to implement that correctly and handle every scenario.\u201d<\/p>\n<p>Some of the more pressing questions have revolved around the new Schedule of Reductions, or SOR, which is a new form of disbursement for students receiving loans at all levels.\u00a0<\/p>\n<p>This new rule means financial aid officials have to assess every single student\u2019s award and prorate their award if they are taking less than a full-time course load, or if they drop a class in the middle of a semester.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/sanantoniomovingreport.com\/?p=555\">Texas lawmakers put limits on cities\u2019 abilities to enact progressive policies. Some want to go further.<\/a><\/p>\n<p>\u201cIf a student is not full-time, their loans now have to be prorated, which has never been something we had to do before unless a student was graduating early in the academic year,\u201d Alicea said. \u201cNow, every single student and every single semester is subject to proration if they\u2019re not full-time.\u201d<\/p>\n<p>Other students have reached out with many questions regarding the changes to the Graduate PLUS, or Grad PLUS, loans.\u00a0<\/p>\n<p>For the purposes of borrowing, the Department of Education is enforcing its designation of professional degrees, or graduate degrees. A professional degree is one that requires the completion of the academic requirements before anyone can begin to practice in the field, as well as \u201ca level of professional skill beyond that normally required for a bachelor\u2019s degree,\u201d according to the federal guidelines.<\/p>\n<p>A total of 11 degrees were designated as professional, including Medicine (M.D), Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.) and Optometry (O.D.). Students will have higher borrowing caps of $50,000 annually and an aggregate lifetime cap of $200,000.<\/p>\n<p>But other professions including those in healthcare and social services, such as nursing and physical therapy, were designated as graduate degrees and will have lower caps of $20,000 annually and a lifetime cap of $100,000.<\/p>\n<p>Some students who received loans before July 1, 2026, could qualify for an exemption under a legacy, or grandfathered, provision to continue borrowing through the Grad PLUS programs with higher loan limits if they meet certain requirements.\u00a0<\/p>\n<p>These include not having any gaps on their enrollment, no degree changes, and you can only borrow for a total of three years, or for the remainder of the \u201cexpected time to credential\u201d for their degree plan.\u00a0<\/p>\n<p>\u201cFor these students, the loss of that Graduate PLUS loan, if they don\u2019t meet the interim exception, for some of them means they\u2019re not going to be able to finish their program,\u201d Alicea said.\u00a0<\/p>\n<h4>Protecting students, or burdening them?<\/h4>\n<p>At UIW, the Ila Faye Miller School of and Health Professions houses many of the programs that will be affected by borrowing caps. Alicea said she wasn\u2019t at liberty to discuss specific programs, but added that in one health professions program, there are at least two dozen students affected by these changes.<\/p>\n<p>\u201cThe immediate impacts are the ones that we know are off-schedule on their degree that don\u2019t have eligibility for their last one or two years, or maybe they have one year of eligibility left, but two years of classes left,\u201d Alicea said.<\/p>\n<p>Ojeda expressed similar concerns, adding that for a large portion of their students, leaving work to attend college full time is not an option. Some might have taken a semester or two off to take care of other responsibilities and are attempting to get back to their studies with lesser options, she said.\u00a0<\/p>\n<p>\u201cI don\u2019t think that that\u2019s necessarily going to force people not to borrow,\u201d Ojeda said. \u201cBut then what\u2019s going to happen on the private side? I think that that\u2019s where you\u2019re going to see all of the increase which is not necessarily making a correction to anything. Now it\u2019s just going to be whoever has good credit and whoever can borrow.\u201d<\/p>\n<div>\n<div>\n<h4>Tell us your story<\/h4>\n<p>Are you a college student who\u2019s been affected by changes to federal loans? Submit your story here.<\/p>\n<\/div>\n<\/div>\n<p>Ojeda and her team have made it a point to learn more about private loans in order to answer questions for students, she said. But they worry that these loans often come with fewer borrower protections and repayment flexibilities.<\/p>\n<p>Some students might choose to pause or end their studies based on what type of loan they can access, officials worry. And while fall student head counts might offer a glimpse of the immediate impact, Alicea notes even those numbers won\u2019t give them the full picture.<\/p>\n<p>\u201cThat doesn\u2019t take into account students who enroll who think they\u2019re going to be able to get a private loan and maybe find out that they can\u2019t, then they can\u2019t register for spring because they still have a balance,\u201d she said. \u201cThere [are] going to be longer effects than just what our fall class looks like.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/sanantoniomovingreport.com\/?p=554\">San Antonio couple opens new center for business, entrepreneurship out of a shuttered Southside post office<\/a><\/p>\n<p><em>The San Antonio Report partners with Open Campus on higher education coverage.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Changes to federal student loans take effect on July 1, but university officials have waited months for rules, delaying the entire process.<\/p>\n","protected":false},"author":1,"featured_media":558,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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