New Federal Direct Loan Limits effective July 1, 2026
- What are the new loan limits effective July 1st, 2026? Who will the loan changes affect?
- Total maximum federal unsubsidized / subsidized loans $257,500. Undergraduate maximum, $57,500 subsidized/unsubsidized. Maximum $200,000 unsubsidized professional, including any loan balance for previous graduate/professional program.
- The new loan limits will affect all incoming students in the 2026-27 cohort, even those students who took a voluntary withdrawal or were academically disqualified in a previous year. It will also affect continuing students who haven’t taken a previous federal direct loan.
- Can a borrower who’s never taken loans in undergrad combine the two loan amounts?
- No. The $57,000 is for undergrad programs and $200,000 for the professional degree program.
- If a student has taken prior loans for a graduate degree and currently have outstanding loans for a graduate degree can they still take $200,000 more for the professional degree program?
- No. The $200,000 maximum for a professional degree would include all current loan balances for graduate level.
- What would a student need to do if they reach the maximum loan limit of $200,000 while still enrolled?
- The student would need to obtain private loans or another form of private payment. Ex. Heloc, refinance mortgage, private student loan lender.
- Does SJCL have a preferred lender for private student loans?
- No. We do not have a preferred lender list.
- What if I’m a student currently enrolled in the law program at SJCL prior to the July 1, 2026 date?
- There is a grandfathering clause in the law. If a current/continuing student has a loan originated prior to July 1, 2026, they can elect to continue with the prior loan limits, including being eligible for a grad plus loan, They can also elect to use the new loan amounts of $50K per academic year. They are eligible to borrow up to their cost of attendance, but proration may affect the maximum amount of loans.
- What if a current student takes a leave of absence in the 2025-26 academic year and re-enrolls in fall 2026, or is academically disqualified in fall or spring? Can they elect to choose to keep the current loan limits?
- No, if a student takes a leave of absence, or is academically disqualified during fall or spring but receives petition to repeat, they would be considered a new student and have the new loan limits. If a student is academically disqualified in spring but is granted petition for probation, they could choose the current loan limits or new limits. They would also not be eligible for a grad plus loan.
New Loan Proration Requirement effective July 1, 2026
- What is loan proration? How will it affect me if I’m enrolled in the 4-yr or 5-yr program?
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Loan proration is a new loan effective July 1, 2026. Students will be eligible to borrow up to the percentage of full-time enrollment. The proration is based on the number of units enrolled in for the academic year summer – spring.
- Full time enrollment is 20 units in an academic year. (per COBE hours conversion)
- A student enrolled in less than 20 units in an academic year would be eligible for only a percentage of the maximum loan amount.
Example 1L:
1L enrolls in 10-units for Fall semester, but fails/drops a substantive course during the semester. Student will enroll in 7-units for Spring semester. Student is no longer considered full-time for loan purposes, will only be eligible for percentage of maximum loan.
17/20= 85% of loan.
$50K X 85% = $42,500 loan eligibility. If the student elects to take the maximum amount of loans, the spring loan disbursement will be adjusted to ensure there is no over award of loan funds.
Fall $25,000
Spring $17,500
Loan disbursements may not be equally disbursed.
Example 2L-4L:
Loan proration applies to both the new loan amount of $50K or if the student elects to keep the grandfathered loan limits of $20,500 + grad plus loan, maximum is cost of attendance.
For students who front load units in their 2nd and 3rd year to take less units in their final year the maximum eligible amount will be prorated to the number of units taken for the academic year.- 1L – 20 units
- 2L – 26 units
- 3L – 26 units
- 4L – 14 units.
The loan may not be disbursed equally per semester due to the proration requirements. Spring may be lower than the Fall disbursement.
General Financial Aid Information
What is the deadline to apply for financial aid? Do I apply during the application period or not until I am accepted?The FAFSA and SJCL financial aid application needs to be submitted when the application to the school is submitted. Our federal school code is 016902, San Joaquin College of Law
- Do I need to apply for financial aid every year?
- Yes, FAFSA must be completed every year.
- What are the basic eligibility requirements for federal student aid to San Joquin College of Law?
- Must be eligible to receive federal financial aid.
- Must be a citizen or legal non-citizen.
- Must not be default on prior federal loans or have unpaid overpayment.
- Students eligible for the Dreamer program in California are not eligible for federal student loans. They must obtain a loan from a private lender.
- Does San Joaquin College of Law offer federal work study?
- Yes, but our award is a limited amount. The majority of our federal work study award is used for the proctor position in our library. Students at any level may be eligible for the proctor position when they are available. Most proctors are upper division students. Incoming students should not expect to receive a federal work study award in their first year.
- Will the loans cover all my tuition and expenses each year?
- It depends. The new unsubsidized loan maximum will cover the tuition and the fees for the year, but it may not be enough to cover the full amount of the financial aid cost of attendance budget assigned to a student.
- When do I have to start making payments for my loans?
- All current and prior loans go into in-school deferment, then a six-month grace period upon graduation, withdrawing or below half time. Loans repayment begins six months after graduation, withdrawal date, or falling below half time.
- Will borrowers still be eligible for PSLF (Public Service Loan Forgiveness)?
- Yes. There were no changes to PSLF in the law. You can find further information on PSLF at studentaid.gov.
- I’m an incoming student with only an AA/AS degree, will I still be eligible for federal student loans?
- It depends. A student must have completed at least 72 units in an undergrad program to be eligible for federal loans in a professional program. The units do not need to be part of the AA/AS degree. They also don’t need to be completed at the degree granting institution. They can’t be AAS (applied studies) units. They must be eligible to be applied to a degree.