New Borrower – A student who first enrolls and receives federal student loans on or after July 1, 2026, or a continuing student who has not received federal student loans prior to that date.
Legacy Borrower - A student aid legacy borrower is a student who has a Federal Direct Loan or Parent PLUS loan disbursed on or before June 30, 2026, continuous enrollment in the same program at the same school, allowing them to temporarily operate under previous, higher federal loan borrowing limits. It acts as a "grandfathering" clause, preventing sudden loan limit changes.
Loan Limits - Direct Subsidized Loans and Direct Unsubsidized Loans have three different types of loan limits:
- Annual loan limit—The maximum loan amount you can borrow each academic year
- Aggregate loan limit—The maximum amount of unpaid principal balance minus any capitalized interest that you can have outstanding at any point in time on all of your subsidized and unsubsidized loans for undergraduate, graduate, or professional study
- Lifetime maximum loan limit—The maximum amount you can receive, regardless of any amount paid or discharged, in any combination of subsidized loans, unsubsidized loans, and Direct PLUS Loans for graduate or professional study
The annual and aggregate limits vary depending on your program of study and, for undergraduate students, how far along you are in your program and whether you’re a dependent or an independent student.
Loan Pro-ration - Loan pro-ration is the required reduction of federal student loan limits for undergraduate students in their final semester or a program shorter than a full academic year. The loan amount is reduced to reflect that the student is not enrolled for a full year.
Loan Limit Exceptions - If you meet certain requirements, you’ll have a period of time after July 1, 2026, and before the new limits apply during which you might be eligible for a Direct Loan under the pre-OBBBA limits.
If you qualify for the exception, you’ll be exempt from certain loan limits and loan eligibility changes for the lesser of
- three academic years or
- the difference between the published length of the program of study you (or the child you’re borrowing for) are enrolled in and the period of time you (or your child) have completed in that program.
Professional Student - What is the difference between a graduate student and a professional student?
- The term “graduate student” is defined as a student enrolled in a program of study that is above the baccalaureate level and that awards a graduate credential (other than a professional degree) upon completion of the program.
- The term “professional student” is defined as a student enrolled in a program of study that awards a professional degree upon completion of the program. A professional student may not receive federal student aid as an undergraduate student for the same period of enrollment.
What is a professional degree?
The term “professional degree” is defined as a degree that signifies
- completion of the academic requirements for beginning practice in a given profession and
- a level of professional skill beyond that normally required for a bachelor's degree.
A professional degree is generally at the doctoral level and requires at least six academic years of postsecondary education to complete, including at least two years of post-baccalaureate coursework, as well as generally requiring professional licensure to begin practice in the intended field.
The degree must be in the same group as one of the following professional degrees: At UTMB, only MD students are classified as professional students.
- Pharmacy (Pharm.D.)
- Dentistry (D.D.S. or D.M.D.)
- Veterinary Medicine (D.V.M.)
- Chiropractic (DC or DCM)
- Law (L.L.B. or J.D.)
- Medicine (M.D.)
- Optometry (O.D.)
- Osteopathic Medicine (D.O.)
- Podiatry (D.P.M, D.P., or Pod.D.)
- Theology (M.Div. or M.H.L.)
- Clinical Psychology (Psy.D. or Ph.D.)
Leave of Absence - Leave of Absence is a temporary, approved break in a student’s academic program that meets federal requirements.
A student on an approved LOA:
- Must return to the same program to maintain eligibility.
- Must meet all federal LOA requirements, including:
- The LOA is formally requested and approved.
- The LOA does not exceed 180 days in a 12‑month period.
- The student is expected to return to the same point in the program.
Dual Degree vs. Joint Degree Programs
Federal rules distinguish between dual degrees and joint degrees, and this distinction affects Interim Exception eligibility.
Joint Degree Programs
A Joint degree program involves:
- Two separate degree programs
- With separate admissions
- Completed sequentially or with overlapping coursework
- Resulting in two separate degrees awarded at different times
Important: Unless a Joint degree program is officially recognized as a single program by the state, the institution, or the accrediting body, it is not considered one program for purposes of retaining legacy status.
Therefore:
- Students in Joint degree programs may not be eligible if the second degree is considered a new program.
Dual Degree Programs
A dual degree program is:
- A single, integrated program
- Leading to two degrees awarded simultaneously
- With a unified curriculum approved as a single program by the institution and/or accreditor
For federal purposes:
- Dual degree students retain legacy status eligibility as long as the joint program is officially recognized as one program of study.