The Daily Texan spoke with Texas One Stop ahead of the fall semester about the potential impacts of recent developments around federal loan limits for UT students. The conversation, held on Aug. 5, aimed to clarify what degrees are currently impacted by the changes and the potential future for student borrowers.<\/p>\n
How will UT graduate students be impacted?<\/p>\n
Following a federal court order at the end of June, the Department of Education issued an updated list that classified additional graduate programs as \u201cprofessional degrees\u201d for the duration of court proceedings until December.\u00a0<\/p>\n
This list added new programs, including three nursing degrees: Master of Science in Nursing, Doctor of Nurse Anesthesia Practice and Doctor of Nursing Practice. The Federal Student Aid Office of the Department of Education defines a professional student as a \u201cstudent enrolled in a program of study that awards a professional degree upon completion of the program.\u201d In the update, the department said it is confident that the current definition based on the 2025 One Big Beautiful Bill Act<\/a>, effective July 1, is correct and lawful.\u00a0<\/p>\n According to a timeline from the National Association of Student Financial Aid Administrators, the final court briefing for the ongoing lawsuit against the Department of Education\u2019s definition of a professional degree is set for Dec. 4, and a final decision will be made sometime afterward.\u00a0<\/p>\n Jennifer Love, associate vice provost for financial aid and Texas One Stop, confirmed that in the fall 2026 semester, One Stop will use the current professional graduate degree definitions. This means professional degree borrowers can borrow up to $50,000 per year with a lifetime amount of $200,000, and nonprofessional borrowers are capped at a lower limit of $20,500 with a lifetime amount of $100,000.\u00a0<\/p>\n Love said the University is using a more \u201cconservative approach\u201d to borrowing. The degrees identified as nonprofessional during the court proceedings will have a lower borrowing limit to prevent overborrowing in programs such as audiology, speech pathology and nursing.\u00a0<\/p>\n \u201cEvery student\u2019s approach in paying for their education and their expenses is different. \u2026 And a part of it is making sure that they have a plan in place to understand exactly how they\u2019re going to be approaching it,\u201d Love said. \u201cFor this professional group of students who are in the space of waiting until the December ruling, hopefully going with a more conservative approach, it\u2019s not going to hold them (in a difficult position).\u201d<\/p>\n How will UT undergraduate students be impacted?<\/p>\n For incoming undergraduate students, Parent PLUS loans, which allow student\u2019s parents to take out loans, are capped at $20,000 annually per dependent undergraduate, with a $65,000 lifetime cap per student, according to Texas One Stop<\/a>.\u00a0<\/p>\n For all students who took out a federal loan before July 1, the legacy rules will apply. These rules state that the maximum Parent PLUS loan amount a parent can borrow is up to the cost of attendance, which is determined by the institution per program, minus any other financial assistance a student receives, according to the Federal Student Aid office website<\/a>.<\/p>\n Love said if a student under the legacy rules transfers to a different college within UT, transfers to a different institution, or takes a leave of absence or a break semester, they will be moved to the new annual and lifetime limit loan caps. However, adding a new major on top of an existing one would not trigger this effect, she said.\u00a0<\/p>\n How is Texas One Stop guiding students on the future of loans?<\/p>\n As impacted students receive fewer funds from federal loans, they may look toward private lending options. Federal loans typically have a lower interest rate and have better payment and forgiveness options. In contrast, private loans are based on consumer markets, causing interest rates to fluctuate, as it is completely up to the company lending the money to the student.\u00a0<\/p>\n