Dear Graduate Students,
I am writing to share a crucial update regarding the federal One Big Beautiful Bill (OBBB) Act and how it impacts your ability to fund your graduate degree at Saint Mary’s.
The OBBB Act signed into law on July 4, 2025 included legislation that will place limits and reduce options for graduate student loans, beginning on July 1, 2026. For those interested in the policy shift behind these changes, the National Association of Student Financial Aid Administrators (NASFAA) has a comprehensive brief available here.
If you are currently enrolled and have borrowed federal loans before July 1, 2026, you are granted “Legacy Student” status. This is a significant advantage that allows you to continue borrowing under the older, more flexible federal rules (including the Graduate PLUS loan) for up to three years or until you graduate, whichever is shorter.
The most important rule for you: To maintain this Legacy status, you must remain continually enrolled in your current program. Federal guidance suggests that if you “stop out,” take an unapproved leave of absence, or pause your studies, you will lose your Legacy protections. If that happens, you will be subject to the new, lower federal borrowing cap of $100,000 Graduate Lifetime Limit and may need to utilize additional loan options to finish your degree upon your return. To see your current lifetime loan usage, go to studentaid.gov/h/manage-loans and login using your FSA ID.
Bottom Line: If you are considering a break in your studies, please contact Student Central first to discuss the financial implications. Depending on your circumstances, it may be wise to continue your enrollment rather than pausing following July 1, 2026.
Information may change as we get closer to implementation, and if so, we will provide you with updates via Saint Mary’s Today. In the meantime, if you have questions, our Student Central team is available for support.
We look forward to supporting you toward your goals.
Warm regards,
Holly Weberg
Director of Financial Aid Saint Mary’s University of Minnesota
