ATTENTION:
Beginning with the 2026/2027 academic year: New graduate students will no longer be eligible for Grad PLUS Loans this may also include those who have reached their overall aggregate loan limit or reached or exceeded their program length of study.
Tulane participates in the Federal Direct Loan Program. Federal Direct Loans are made by the U.S. Department of Education. studentaid.gov/understand-aid/types/loans/plus/grad
The Federal Direct Graduate PLUS Loan has traditionally helped graduate and professional students borrow up to their cost of attendance, minus any other financial aid received. Beginning July 1, 2026, federal student loan rules are changing under the One Big Beautiful Bill Act (H.R.1). These changes affect Graduate PLUS Loan eligibility and federal borrowing limits.
Important change beginning July 1, 2026: The Graduate PLUS Loan will no longer be available to most new graduate and professional students. Some continuing students may qualify for a temporary legacy exception.
Legacy and Non-Legacy Students
Legacy students may be able to continue borrowing under the previous Graduate PLUS rules for a limited time if they meet federal requirements.
- They received a federal Direct Loan disbursement before July 1, 2026.
- They remain in the same credentialed graduate or professional program at the same institution.
- The legacy exception is generally limited to up to three additional academic years or the remaining expected time to complete the program, whichever is shorter.
Non-legacy students are students who begin a new graduate or professional program on or after July 1, 2026, or who do not meet the legacy exception requirements.
- Non-legacy graduate and professional students will not be eligible for Graduate PLUS Loans beginning July 1, 2026.
- They will be limited to the new federal Direct Unsubsidized Loan limits.
New Federal Loan Limits Beginning July 1, 2026
A new lifetime federal student loan limit of $257,500 will also apply to student borrowers. This lifetime limit includes all undergraduate, graduate, and professional federal student loans (including Graduate Plus loans), but does not include Parent PLUS Loans.
Interest Rates for Direct Loans First Disbursed on or between July 1, 2026, and June 30, 2027
These are fixed interest rates for the life of the loan:
- Direct Unsubsidized Loans for graduate students: 8.07%
- Direct PLUS Loans for eligible legacy graduate/professional borrowers: 9.07%
Interest on the Graduate PLUS Loan
Interest begins accruing on a Graduate PLUS Loan when the first disbursement is made and continues until the loan is paid in full.
Loan Fees
Loan fees are deducted from each loan disbursement before the funds are applied to the student’s account. Federal loan fees are set by the U.S. Department of Education and may change.
How to Apply
Students who are eligible to borrow a federal Direct Loan must complete the FAFSA. Additional steps may include completing a Master Promissory Note, entrance counseling, and any required credit review for PLUS Loan borrowers.
https://studentaid.gov/plus-app/
Repayment of the Federal Direct Graduate Student Loans
Graduate PLUS Loans begin accruing interest when the loan is disbursed.
Graduate and professional student borrowers are generally not required to make payments while enrolled at least half-time. Graduate PLUS borrowers also generally receive a six-month post-enrollment deferment after they graduate, leave school, or drop below half-time enrollment.
Interest continues to accrue during deferment periods. Borrowers may choose to make payments on the interest or principal at any time without penalty.
The loan servicer will provide repayment information, including when repayment begins. Borrowers are responsible for making payments on time, even if they do not receive or review the servicer’s notice.
Borrowers may review repayment plan options and manage their federal student loans at StudentAid.gov.
Receiving the Federal Direct Graduate Student Loans
Federal Direct Graduate PLUS Loans for a standard academic year are typically disbursed in two installments, one for the fall semester and one for the spring semester.
Funds are applied directly to the student’s Tulane account after the student has confirmed registration and continues to meet all eligibility requirements.
Students may view their student account activity through Tulane’s Accounts Receivable system.
Schedule of Reductions
Beginning July 1, 2026, Federal Direct Subsidized, Unsubsidized, and Graduate PLUS Loan eligibility will be subject to the U.S. Department of Education’s Schedule of Reductions. Students enrolled less than full time (as defined by academic level and program) may have reduced annual loan eligibility based on their enrollment intensity. Both legacy and non-legacy students are subject to Schedule of Reductions which applies across all terms, including summer, fall, and spring.
Withdrawing from the University
Students who are considering withdrawing from Tulane after receiving a federal loan should contact their academic dean’s office to discuss the withdrawal process.
Students should also contact Tulane Financial Aid to understand how withdrawing may affect federal loan eligibility, loan disbursements, repayment, and possible return of federal funds.
Withdrawing, leaving school, or dropping below half-time enrollment may also trigger exit counseling and future repayment requirements.
Exit Counseling
Federal regulations require student loan borrowers to complete exit counseling when they graduate, leave school, or drop below half-time enrollment.
Exit counseling helps borrowers understand loan repayment, repayment plan options, borrower rights and responsibilities, and the consequences of delinquency or default. Students may complete exit counseling online at https://studentaid.gov/exit-counseling/
Students who need assistance with exit counseling may contact Tulane Financial Aid. Law and Health Sciences students should contact their respective financial aid offices.
Processing Deadline
Tulane Financial Aid cannot process a federal loan after the loan period has ended or after the student has ceased attendance, whichever comes first.
Students and parents are strongly encouraged to finalize borrowing decisions at least one month before the end of the semester.
Please note: Because federal loan rules are changing, students should review their borrowing options carefully. Students who are unsure whether they qualify as legacy or non-legacy borrowers should contact the Office of Financial Aid before making borrowing decisions.
Federal student aid laws, regulations, guidance, loan limits, interest rates, and eligibility requirements are subject to change. Tulane will update this information as additional federal guidance becomes available.
