Federal Loans

Important Federal Loan Updates:

On July 4, 2025, a federal reconciliation bill(opens in a new tab) was signed into law that significantly changes federal student aid programs:

• The Graduate PLUS Loan program will be eliminated for new borrowers effective July 1, 2026. Students who borrowed Graduate PLUS Loans prior to that date may continue to access these loans under legacy provisions through the completion of their current academic program.
• Beginning with the 2026-27 academic year, graduate students will  be eligible for Federal Direct Unsubsidized Loans (up to $20,500 per year) and may need to pursue private loan options for additional funding
• Loan amounts will be proportionally reduced for students enrolled less-than full-time. Under this requirement, the actual loan amount would be calculated by first determining the student’s enrollment level as a percentage of a full-time course load, rounding this percentage to the nearest whole number, and then awarding that proportion of the standard full-time loan amount.

We are closely monitoring the implementation of this policy change and its impact on current and prospective students. This page will be updated as additional guidance becomes available. You can find more detailed information about the impacts of the new bill by visiting the NASFAA website(opens in a new tab).

Helpful links:

• H.R.1 Bill(opens in a new tab)
• NAFSAA Summary(opens in a new tab)
• UC Berkeley Loan Process(opens in a new tab)
• Financing Options(opens in a new tab)
• Center for Financial Wellness(opens in a new tab)

2026-2027 Unsubsidized Loan Terms

The Direct Unsubsidized Loan(opens in a new tab) annual limit is $20,500 (split into 2 terms) per academic year. Interest accrual is not compounded or capitalized during periods of enrollment; the accrued interest is capitalized when you enter repayment.

• 8.07% fixed interest rate (on or after July 1, 2026, and before July 1, 2027)
• 1.057% loan origination fee upon disbursement
• 6 months grace period
• No credit check required
• No prepayment penalties

2026-2027 Graduate Plus Loan Terms

Students may borrow up to the remaining Cost of Attendance per academic year through the Direct Graduate Plus Loan.  Interest accrual is not compounded or capitalized during periods of enrollment; the accrued interest is capitalized when you enter repayment.

• 9.07% fixed interest rate (on or after July 1, 2026, and before July 1, 2027)
• 4.228% loan origination fee upon disbursement
• Credit check required
• No prepayment penalties

Note: Students with an adverse credit history must obtain an endorser or appeal the credit decision with the Department of Education.