Graduate Direct Loan Updates
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025, changes some rules related to Federal Aid (Title IV) programs. Some of those changes impact Federal Direct Unsubsidized Loans available to graduate and professional students. As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026鈥�27 Free Application for Federal Student Aid (FAFSA).
| Loan Component / Student Type | Current Limits (Before July 1, 2026) | Changes Effective July 1, 2026 |
|---|---|---|
| Graduate Annual Limit | $20,500 | Remains $20,500, but loans must now be prorated based on enrollment status. |
| Graduate Aggregate Limit | $138,500 (includes undergraduate borrowing) | $100,000 (excludes undergraduate borrowing). |
| Professional Students (M.Div.) | N/A (Subject to standard graduate limits) | M.Div. specific rules: Loans must be prorated based on enrollment status. Annual Limit: $50,000 Aggregate Limit: $200,000 (combined graduate and professional borrowing; excludes undergraduate borrowing). Note: The Master of Divinity is the only HCU program that meets this federal definition. |
| Total Lifetime Cap | N/A (Separate limits applied across degrees) | Global Cross-Degree Cap: $257,500 maximum across all federal loan programs combined (undergraduate and graduate). |
Institutional Discretion
Schools have the ability to set lower annual loan limits by program. Limits must apply uniformly to all students in the program. At HCU, we have limited all Graduate and Professional programs to $20,500 per year.
Planning Ahead
For families that may still need additional funds beyond the new OB3 limits, consider investigating the following options:
Information included in this publication is subject to change. Contact the Office of Financial Aid with any questions you may have about this information.
Please see Institutional Discretion regarding our Master of Divinity degree program specific rules.