Sec. 221. Loan limits
1,312 words·~6 min read·
/bill/118/hr/6951/rh/section-221A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 455(a) ( 20 U.S.C. 1087e(a) ) is amended— in paragraph (3)— in subparagraph (A)(ii), by inserting before the period at the end the following: , except that for any period of instruction beginning on or after July 1, 2025, such maximum annual amount shall be determined in accordance with subparagraph
(C); in subparagraph (B), by inserting before the period at the end the following: for any period of instruction through June 30, 2025 ; and by adding at the end the following: Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that a graduate or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be median cost of college (as defined in section 472A) of the program of study in which the student is enrolled, except that the sum of such annual loan amount and other financial assistance (as defined in section 480(i)) that the student receives for such academic year may not exceed the cost of attendance of such student. Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that— a graduate student may borrow shall be $100,000; and a professional student may borrow shall be $150,000. The provisions listed in clause
(ii)shall not apply with respect to any individual who, as of June 30, 2025, is enrolled in a program of study at an institution of higher education, and has received a loan (or on whose behalf a loan was made) under this part for such program, during the individual’s expected time to completion of such program, as determined by calculating by the difference between— the program length for the program of study in which such individual is enrolled; and the period of such program that such individual has completed, except that such expected time to completion may not exceed 3 years. An individual described in clause
(i)shall not be subject to subparagraphs
(C)and
(D)of this paragraph, or paragraph
(4)or (6). . Section 455(a) ( 20 U.S.C. 1087e(a) ) is further amended by adding at the end the following: Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between— the median cost of college (as defined in section 472A) of the program of study in which the student is enrolled; and the Federal Pell Grant under section 401 awarded to the student for such academic year, except that
(1)the amount of such Federal Direct Stafford loans awarded to the student for such academic year may not exceed the maximum annual limit described in section 428(b)(1) that is applicable to such student; and
(2)the sum of such Federal Direct Stafford Loans and the amount of such Federal Pell Grant and other financial assistance (as defined in section 480(i)) that the student receives for such academic year may not exceed the cost of attendance of such student. Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, the maximum annual amount of Federal Direct Unsubsidized Stafford loans that an undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the difference between— the median cost of college (as defined in section 472A) of the program of study in which the student is enrolled; and the sum of— the amount of Federal Direct Stafford loans awarded to such student for such academic year; and the amount of the Federal Pell Grant under section 401 awarded to the student for such academic year, except that the sum of all Federal financial aid under this title and other financial assistance (as defined in section 480(i)) that such student receives for such academic year may not exceed the cost of attendance for such student. Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2025, with respect to an undergraduate student— the maximum aggregate amount of Federal Direct Stafford loans and Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000; the maximum aggregate amount of Federal Direct Stafford loans that may be borrowed shall be $23,000; and the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans that may be borrowed shall be $50,000. Notwithstanding the aggregate limits described in subparagraph (A)(ii), a student enrolled in a qualifying undergraduate program shall be subject to the aggregate limits for professional students described in paragraph (3)(D)(ii). For purposes of this subparagraph, the term qualifying undergraduate program means a program of study— for which the total tuition and fees (including the required costs described in section 124(b)(3)(A)(i)(I)) exceeds the aggregate limits for undergraduate students described in subparagraph (A)(ii); that meets certification requirements of the Federal agency that directly regulates the program and provides final licensing and credentials to students upon completion; and the institution of higher education offering such program of study notifies the Secretary that the program desires to be a qualifying undergraduate program. The maximum aggregate amount of loans made, insured, or guaranteed under this title to a student shall be $200,000. . Section 455(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(a) ) is further amended by adding at the end the following: Notwithstanding any other provision of this subsection, an eligible institution (at the discretion of a financial aid administrator at the institution) may prorate or limit the amount of a loan any student who is enrolled in a program of study for a period of instruction beginning on or after July 1, 2024, at that institution, may borrow under this part for an academic year— if the institution can reasonably demonstrate that outstanding amounts owed of loans made under this title are or would be excessive for students who complete such program, based on the most recently available data from the College Scorecard (or successor website of the Department) on— the median of the value-added earnings of students who complete such program; and the median debt owed, and the repayment rate, on loans made under this part, of such students; in a case in which the student is enrolled on a less than full-time basis or the student is enrolled for less than the period of enrollment to which the annual loan limit applies under this subsection, based on the student’s enrollment status; or based on the year of the program for which the student is seeking such loan. Any proration or limiting of loan amounts under subparagraph
(A)shall be applied in the same manner to all students enrolled in a program of study. Upon the request of a student whose loan amount for an academic year has been prorated or limited under subparagraph (A), an eligible institution (at the discretion of the financial aid administrator at the institution) may increase such loan amount to an amount not exceeding the annual loan amount applicable to such student under this paragraph for such academic year. . Section 455(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(a) ) is amended by adding at the end the following: Notwithstanding any provision of this part or part B, except as provided in paragraph (3)(E), for any period of instruction beginning on or after July 1, 2025, no Federal Direct PLUS loans may be made to any parent borrower or graduate or professional student borrower. .
Connectionstraces to 1
Traces to 1 document
U.S. Code