This page will be revised as the U.S. Department of Education releases additional information. If you have questions, please contact financial.aid@smu.ca.
Undergraduate Students
1) Parent PLUS Loans will now be capped at $20,000 USD per dependent student, per year.
Previously, Parent PLUS loans were capped at the student’s total Cost of Attendance, minus any other aid received, and there was no aggregate loan limit. Moving forward, they are capped at $20,000 USD per dependent student (not per parent) per year, with a lifetime (aggregate) loan limit of $65,000 USD.1 This new aggregate loan limit is without regard to any amounts repaid, forgiven, cancelled or otherwise discharged.
2) The amount of your Direct Loan will now depend on the number of courses you take.
A new provision requires institutions to lower loan limits for students in proportion to their enrolment intensity. This means that Subsidized and Unsubsidized Loan amounts will be prorated based on course load. In simple terms: the fewer credits you take, the lower your annual loan limit.
3) Direct Loan payments may no longer be split evenly between terms.
Previously, students who qualified for their full annual loan limit received 50% in the Fall Term and 50% in the Winter Term. Starting July 1, 2026, if a student is registered in different enrolment intensities over the course of the academic year, then their disbursements may not be divided equally.
4) If you withdraw from a course part-way through a term, your loan in the following term may be reduced.
If you withdraw from a course, you may have received more loan funding than your enrolment intensity dictates (an “overaward”). The amount of this overaward may be deducted from your loan disbursement in the following term.
Example of proration:
The following examples use a dependent, undergraduate student in their senior year. A full-time student (registered in a minimum of 12 credit hours in both the Fall and Winter Terms) at this academic level is eligible for:
Scenario 1: three-quarter enrolment in both terms.
The student described above is registered in in 9 credit hours in both the Fall and Winter Terms. As they are enrolled in what is considered three-quarter time enrolment intensity, they are eligible to receive 75% of their annual loan limits:
Since the student’s enrolment level is the same in both terms, the loan will be divided equally between the Fall and Winter Terms.
Scenario 2: different enrolment levels in each term.
The student described above is registered in 9 credit hours in the Fall Term (three-quarter time) and 15 credit hours in the Winter Term (full-time).
Their total course load for the academic year equals full-time student overall, so they remain eligible for the full annual loan amount. However, the loan disbursements will not be split evenly.
In the Fall, they will receive a reduced disbursement because they are enrolled at three-quarter time:
The remaining portion of the Fall loan will be held until the Winter Term. If they remain enrolled full-time, they will receive:
Graduate/Professional Students
Resources
https://studentaid.gov/announcements-events/big-updates/definitions#loan-limits
https://studentaid.gov/announcements-events/big-updates
https://www.nasfaa.org/uploads/documents/Federal_Student_Aid_Change_OB3.pdf
https://www.naicu.edu/policy-advocacy/advocacy-resources/reconciliation-advocacy-center/frequently-asked-questions-about-the-one-big-beautiful-bill-act
Notes
Students who are citizens or permanent residents of the US may apply for Stafford and PLUS loans through the William D. Ford Federal Direct Loan Program (Direct Loans - DL). This program includes Stafford and PLUS (parent and Graduate) loans only. Students attending foreign schools are not eligible for grants from the US government. Students must be registered in a degree program. Students in online or correspondence programs are not eligible.
How much can I borrow?
Stafford loans are need-based (subsidized) and non-need based (unsubsidized) and are subject to annual limits. The maximum amount you can borrow each year depends on your grade level and on whether you are a dependent student or an independent student. The loan calculation includes information from your FAFSA, information about other financial aid you are receiving and the cost of attendance (tuition and living expenses), which is set by the school. The loan calculation determines whether the base amount of the loan is subsidized or unsubsidized. The remainder of the Stafford loan is always unsubsidized. If a parent is denied a PLUS loan, an additional unsubsidized amount may be borrowed.
Annual Loan Limits for Dependent Undergraduates:
Annual Loan Limits for Independent Undergraduates:
Independent undergraduates may borrow the same base amounts as dependent undergraduates plus both amounts of the additional unsubsidized Stafford loan.
Annual Loan Limits for Graduate and Professional Students:
Graduate and professional students may borrow up to the cost of attendance, to a maximum of $20,500US.
Subsidized and Unsubsidized aggregate loan limits:
$57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans.
$138,000 for graduate or professional student - No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
How do I apply for a Stafford Loan?
How will I get the loan funds?
Funds will be disbursed electronically to your student account at Saint Mary’s University. The first disbursement will be in early September provided Entrance Counselling has been completed by mid-August. The second disbursement of funds for all students will be made the second week of January. Once your tuition and fees are paid, any remaining funds are to be used for your book and living expenses.
How do I apply for a PLUS Loan?
Parents and Graduate program students who wish to borrow funds through the Parent/Graduate PLUS program must complete 3 steps (4 steps for first time borrowers of the PLUS):
How are PLUS Loans disbursed?
Funds from Parent/Graduate Plus loans will be disbursed electronically in two disbursements to your student account. The first disbursement will be in early September (contingent on the Entrance Counselling being complete for Graduate Plus Loans), the second in early January.
Deadline to Apply:
All parts of the application process (FAFSA, completion of the MPN(s), and the email to be sent to us) should be completed by July 15 to ensure timely processing. Once all necessary steps have been completed, your award letter will be emailed to you. You will be asked to respond to the email confirming acceptance of the full award or part of the award. Please note that SMU will continue to process Direct Loans up to one month prior to the end of the student's academic year.
Policies:
US Alternative (non-government) Loans:
Students in need of additional funding may consider alternative (non-government) loans. Please note the following information:
To apply for a US alternative loan, students should apply online via the loan provider's website. The lender will contact our office for cost and registration information. Some US alternative loan providers are:
Questions?
For mailing information or if you have further questions, please contact the Financial Aid & Awards or email: financial.aid@smu.ca.