Loan Options
Federal loans allow you to borrow money for college at low interest rates.
When considering which loan to use to assist in paying for school, Lasell recommends that all students complete the Free Application for Federal Financial Aid (FAFSA) and apply for need-based aid and the Federal Direct loan first, before pursuing any other more expensive loan options.
Federal Student Loan Changes Beginning July 1, 2026
What families need to know now, what changes may affect future borrowing, and what Lasell's financial aid team is doing to help students plan ahead.
The federal government recently announced significant changes to federal student loan programs that will begin taking effect on July 1, 2026. Keep track of updates on the studentaid.gov website: https://studentaid.gov/announcements-events/big-updates.
While many details are still being finalized, we want students and families to understand what may change and how these updates could affect future college financing plans.
Federal Parent PLUS Loan Changes
Beginning July 1, 2026, new federal borrowing limits will apply to Parent PLUS Loans.
| Current Parent PLUS Rules | New Rules Beginning July 1, 2026 | |
|---|---|---|
| Annual Borrowing Limit | Parents may borrow up to the student’s full cost of attendance, minus other financial aid. | Parents may borrow up to $20,000 per student, per academic year |
| Lifetime Borrowing Limit | No federal lifetime borrowing cap | $65,000 lifetime limit per student |
| Students Most Affected | No annual federal cap currently exists | New undergraduate students beginning in 2026-2027 may see larger remaining balances than current students |
| Repayment Options | Multiple repayment plan options currently exist, including some income-driven plans for eligible borrowers | Repayment options for new Parent PLUS borrowers are expected to become more limited |
| Effective Date | Current rules remain in effect through 2025-2026 (through end of Summer Main term 2026) | New federal limits begin July 1, 2026 |
|
Current Parent PLUS Borrowers (existing Parent PLUS loans disbursed prior to July 1, 2026) |
Current borrowers may qualify for temporary “legacy” qualifications for up to 3 additional academic years, or until the student completes their current program, whichever occurs first. You can determine whether you qualify for the exception and how to maintain the exception. | |
How the New Parent PLUS Lifetime Limit May Affect a Four-Year Degree
| Academic Year | Example Parent PLUS Borrowed | Remaining Lifetime Eligibility |
| Year 1 | $20,000 | $45,000 |
| Year 2 | $20,000 | $25,000 |
| Year 3 | $20,000 | $5,000 |
| Year 4 | $5,000 | $65,000 Lifetime limit reached |
Beginning July 1, 2026, Parent PLUS Loans will have a $65,000 lifetime borrowing limit per student. Families borrowing near the annual maximum may experience a significantly smaller amount of Parent PLUS eligibility by the student’s final year.
Limited Repayment Options
Federal repayment options for future Parent PLUS borrowers are also expected to become more limited beginning in 2026.
| Current Parent PLUS Rules | New Rules Beginning July 1, 2026 | |
| Annual Borrowing Limit | Parents may borrow up to the student’s full Cost of Attendance minus other financial aid | Parents may borrow up to $20,000 per student, per academic year |
| Lifetime Borrowing Limit | No federal lifetime borrowing cap | $65,000 lifetime limit per student |
| Purpose of Loan | Often used to help cover remaining educational costs after grants, scholarships, and student loans | Same purpose, but with lower federal borrowing limits |
| Students Most Affected | No annual federal cap currently exists | New undergraduate students beginning in 2026-2027 may see larger remaining balances after federal aid |
| Current Borrowers | Current Parent PLUS borrowers may continue borrowing under existing rules | Existing borrowers may qualify for temporary “legacy” protections for up to 3 additional academic years or until the student completes their current program |
| Repayment Options | Multiple repayment plan options currently exist, including some income-driven plans for eligible borrowers | Repayment options for new Parent PLUS borrowers are expected to become more limited |
| Effective Date | Current rules remain in effect through 2025-2026 | New federal limits begin July 1, 2026 |
Scheduled Award, Award Year, and Annual Award
Summary: With the new Federal Direct Loan SOR requirement, full-time students will receive the full amount of their annual loan offer. If a student is enrolled less than full-time, they will not be eligible to receive the full-time amount of loans offered to them. Instead, the university will calculate the amount of loan funding the student is eligible to receive based on the number of credits in which they are enrolled/academically engaged.
Effective July 1, 2026, Federal Direct Loans will be reduced based on the number of credits in which a student is enrolled/academically engaged. This process is called the Schedule of Reductions (SOR).
Students enrolled full-time for the academic year may receive up to the maximum annual Federal Direct Loan amount for which they are otherwise eligible.
Students enrolled less than full-time will receive a reduced annual loan eligibility based on their enrollment. If your scheduled loan award appears lower than in previous years, it may be because you are enrolled in fewer than the number of credits required for full-time annual enrollment under the new federal SOR rules.
What were the previous awarding rules?
In previous years, eligible students who attended less than full-time over the academic year still were offered their full annual Federal Direct Loan eligibility.
As of July 1, 2026, that rule is now changed.
Your annual loan eligibility is now tied to your total enrollment during the academic year. Students enrolled less than full-time should expect a reduced annual loan offer.
Similar to the Pell grant, students will now be offered the maximum amount of Federal Direct Loan funding per year based on full-time enrollment. See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered full-time for financial aid purposes.
Undergraduate Students
24 credits (Fall Spring Summer): Summer 2 → Fall → Spring → Summer Main and 1
- Undergraduate students are considered full-time for annual Federal Direct Loan purposes when enrolled in 24 credits during the academic year.
- Students completing fewer than 24 credits should expect a reduction to their annual Federal Direct Unsubsidized Loan eligibility.
Graduate Students
18 credits (Fall Spring Summer): Summer 2 → Fall Main, 1 → Fall 2 → Spring Main 1 → Spring 2 → Summer Main and 1
- Graduate students are considered full-time for annual Federal Direct Loan purposes when enrolled in 18 credits during the academic year.
- Students completing fewer than 18 credits should expect a reduction to their annual Federal Direct Unsubsidized Loan eligibility.
- Students who previously relied on excess loan funds to receive refunds for living expenses may notice smaller loan amounts than in prior years.
Annual Loan Limits for Dependent Undergraduate Students
If dependent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
| 0-31 Earned Credits | 32-63 Earned Credits | 64 and Above Earned Credits | |
| Subsidized | $3,500 | $4,500 | $5,500 |
| Unsubsidized | $2,000 | $2,000 | $2,000 |
| Total | $5,500 | $6,500 | $7,500 |
Annual Loan Limits for Independent Undergraduate Students
If independent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
| 0-31 Earned Credits | 32-63 Earned Credits | 64 and Above Earned Credits | |
| Subsidized | $3,500 | $4,500 | $5,500 |
| Unsubsidized | $6,000 | $6,000 | $7,000 |
| Total | $9,500 | $10,500 | $12,500 |
Annual Loan Limits for Graduate Students
Students may borrow up to $20,500 each academic year of a Federal Direct Unsubsidized Loan.
Federal Direct Loans
Federal Direct Loans
Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
Approximately 77% of first-time, full-time students who matriculate through to graduation borrow on the Federal Direct Loan (formerly called the Federal Stafford Loan). Students who borrow the maximum amount available, and graduate within four years, can expect to borrow $27,000 in the Federal Direct Loan program. The students who graduated from July 1, 2017 to June 30, 2018 borrowed an average of $26,958 in Federal Student loans and an average of $40,665 in student loans from all sources. The 3 year draft cohort default rate for the students who separated from the university between is 6.1% based upon the 2017 cohort fiscal year.
This loan is a STUDENT loan, and if you wish to use these funds toward your costs here at Lasell this year, you will need to complete the Master Promissory Note (MPN) and Entrance Counseling. These should be completed online at the studentaid.gov website.
Students who wish to take advantage of this funding will be required to complete a Master Promissory Note and an entrance interview the first time they borrow through this program. If students do not wish to utilize this funding they should inform the Office of Student Financial Planning in writing that they wish to decline the loan. The Federal Direct Loan Program offers qualified students a competitive interest rate and multiple repayment options. Eligible students may qualify for the following amounts. Subsidized loans have the interest paid by the federal government for the borrower while in school and during the grace period (period of time after graduation but before repayment begins, usually 6 months). Interest begins accruing on unsubsidized loans at the time of disbursement.
- Freshman (0 - 29 credits earned) $5500 (maximum $3500 subsidized)
- Sophomore (30 - 59 credits earned) $6500 (maximum $4500 subsidized)
- Junior (60 - 89 credits earned) $7500 (maximum $5500 subsidized)
- Senior (90 and above credits earned) $7500 (maximum $5500 subsidized
- Graduate students: To be eligible for a Stafford loan, graduate students must be admitted to one of the degree programs. $20,500 per academic year including summer.
Federal Direct Parent Loans for Undergraduate Students (PLUS)
Direct PLUS Loans are loans made to parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required.
This loan is available for parents to borrow to cover some or all of the out of pocket expenses for the year not covered by other financial aid being received by the student. This is a credit based loan, and a parent begins the process by applying at studentaid.gov.
In order to apply, you will need to log into this site with YOUR Federal Student Aid ID used to sign the Free Application for Federal Student Aid (FAFSA). If you do not have a Federal Student Aid Id or have forgotten yours, you may get one assigned to you by first going to Create an FSA ID and requesting one.
Once you have the FSA ID, you may proceed with the application process. It takes approximately 24 hours for the credit decision to be processed. If approved, our office will be notified and we will add the loan to the student's package.
If you are denied the Direct PLUS loan, you may appeal that decision, apply with an endorser, or do nothing. If you choose not to appeal or apply with an endorser, your student will be eligible for additional Direct Unsubsidized loan funding in the following amounts:
- Freshman and Sophomore students: additional $4000 for the year Unsubsidized Direct Loan
- Junior and Senior students: additional $5000 for the year Unsubsidized Direct Loan
- We highly recommend applying for enough to cover the cost of attendance for the full year. If you need assistance determining the amount to borrow, we recommend you contact Student Accounts at 617-243-2227.
Private/Alternative Loans
Private loans are usually borrowed in the student's name with someone as a cosigner. The amount is limited to the cost of attendance less the other aid a student is receiving.
To research the loans, the lenders available, and to begin the application process for a loan, we recommend you research the education loan options by going to ELM Select. You will be able to research the lenders who offer private education loans, and follow the links to the lender's websites to complete the application online. We require that the application be completed and approved before we will add this loan to the award package and allow it to appear as a credit on the student's bill.
Graduate students can also use Persist, a free decision support tool, to review alternative graduate loan options. With the Federal Grad PLUS loans terminated as of July 1, 2026, Persist can be a great way to help students see what options are available.
We highly recommend applying for enough to cover the cost of attendance for the full year. If you need assistance determining the amount to borrow, please contact Student Accounts at 617-243-2227.
Lasell has chosen ELM Select to present information regarding private loan lenders. Any lender with whom our students have previously borrowed, or who has provided their information to us to be listed appears on this list. We will process the application for a private student loan from any lender you choose. We are referring you to the ELM Select website for informational purposes only.
Application Time Line:
- Direct Loan Master Promissory Note and Entrance interview for new students: After May 1st
- Parent loans for new or returning students: After May 1st
- Private Student Loans for new or returning students: After May 1st
- Monthly Payment Plan: Set up payments for the 8 month plan beginning in June by going to the Student Account Center
Information regarding repayment of loans:
As students graduate or separate from the university for other reasons, they will need to be aware of their repayment options in the Federal Direct Loan programs. More information and guidance can be found at http://www.studentloanborrowerassistance.org/ or at the National Student Loan Database System.