Major changes coming to federal student loans could impact Colorado students

Student loans, often essential, often expensive and not always forgiven, are changing once again, with new federal rules set to take effect beginning July 1 and impact students starting in fall 2026.

One of the biggest changes involves how much students can borrow based on their course load. Previously, students enrolled at least half-time could qualify for the full annual loan amount. Under the new rules, students will need to be enrolled full-time to receive the full amount of federal student loans.

"If they're taking part-time classes, there will be a reduction in the loans they're able to receive," said Jennifer Helgeson with MSU Denver's Office of Financial Aid and Scholarships.

For MSU Denver student Clarissa Ojeda, the timing could have real consequences. She is preparing for a required full-time, unpaid internship as part of her education path. Ojeda has been able to avoid student loans while attending school part-time, but says that may soon change.

"I won't be able to get any type of income, but I'll need to pay for gas, housing, so I might need to take out loans for that," she said.

Ojeda said many students rely on loans for basic living expenses.

"It's kind of disheartening because a lot of students rely on loans for rent, books, and without additional ones they might need, it's going to be really hard for them to live and go to school," she said.

Despite student concerns, financial aid officials say the goal is not to create additional hardship.

"The theory behind it is it shouldn't have a major impact on students financially," Helgeson said.

Another major shift involves Parent PLUS loans, which will face new borrowing caps. Under the new law, parents will be limited to $20,000 annually per student and a $65,000 lifetime borrowing cap.

Institutions like MSU Denver say their programs are designed with affordability in mind, aligning closely with federal borrowing limits.

Graduate borrowing is also expected to tighten significantly. Graduate PLUS loans will no longer be available to new borrowers after July 1, and new limits will be imposed on federal borrowing, including a $100,000 aggregate cap for many graduate students.

Officials say this could force students to reassess program costs, time to completion and borrowing needs earlier in their academic planning.

Under the new rules, changes in enrollment, such as dropping classes or shifting between full- and part-time status, could directly affect loan eligibility.

"Even small changes to enrollment can have ripple effects," Helgeson said.

Financial aid experts say students and families should begin preparing now, even though most changes will not take effect until 2026. Officials emphasize that guidance from the U.S. Department of Education is still evolving, and some details may change.

Still, they recommend students stay informed and meet with advisors to understand how the changes could affect their individual situations.

"The takeaway is you have time to prepare, but staying informed matters," Helgeson said.