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McNEESE STATE UNIVERSITY

Working Families Tax Cut Act: 2026-2027 Changes to Federal Financial Aid

Financial Aid Contact

  • 337-475-5065 
  • McNeese Campus
    Chozen Hall (Student Central), 4435 Ryan Street
  • studentcentral@mcneese.edu
  • Monday - Thursday 7:30am – 5:00pm
    Friday
    7:30am – 11:30am.

Working Families Tax Cut Act:
2026-27 Changes to Federal Financial Aid

Please Note:

On July 1, 2026, the Working Families Tax Cut Act went into effect making significant changes to the federal student financial aid programs.

Please review Federal Student Aid updates for the most up-to-date information being released on changes from the Working Families Tax Cut Act.

Schedule of Reduction for all students regardless of legacy status:

Effective July 1, 2026, for the 2026-2027 Award Year for all students, regardless of legacy status.

Annual loan amounts will be adjusted based on actual enrollment (if less than fulltime in degree-pursuant coursework) for both undergraduate and graduate students. This will result in a reduction of federal loan eligibility for a student enrolled less than full-time for the academic year. Students still must be enrolled in at least ½ time to receive student loans. All Subsidized and Unsubsidized loans are subject to the Schedule of Reduction. Approved Parent Plus loans are excluded from the schedule of reduction requirements.

Students who withdraw from any course(s) will have loan eligibility recalculated.

  • Undergraduate Students – 12 hours of courses that count towards your primary degree program is considered full time.
  • Graduate Students – 9 hours of courses that count towards your primary degree program is considered full time.

Beginning Fall 2026, student loans will be prorated each semester based on your enrollment level. This means the number of credit hours you take each semester will directly affect how much loan funding you can receive.

What’s Changing?

Previously, students enrolled at least half-time could often receive up to their full annual loan amount. Under the new law, your loan eligibility will now be calculated each semester based on your enrollment intensity (how many credits you take).

How Loan Schedule of Reduction Works (Per Semester)

A student's annual award is calculated based on hours enrolled compared to full-time for the year as a percentage. That percentage is applied to the annual maximum for a student of the same dependency and classification. Both unsubsidized and subsidized loans are reduced by the same percentage.

Please note: The amounts listed below represent eligibility for the year. Annual awards will be divided evenly between both Fall and Spring semesters. We will assume enrollment of 12 hours for future terms until actual enrollment is recorded.

Grade Level 24 Hours/Year (100%) 18 Hours/Year (75%) 12 Hours/Year (50%)
Freshman $5,500 $4,125 $2,750
($3,500 can be Sub) ($2,625 can be Sub) ($1,750 can be Sub)
Sophomore $6,500 $4,875 $3,250
($4,500 can be Sub) ($3,375 can be Sub) ($2,250 can be Sub)
Junior/Senior $7,500 $5,625 $3,750
($5,500 can be Sub) ($4,125 can be Sub) ($2,750 can be Sub)

Grade Level 24 Hours/Year (100%) 18 Hours/Year (75%) 12 Hours/Year (50%)
Freshman $9,500 $7,125 $4,750
($3,500 can be Sub) ($2,625 can be Sub) ($1,750 can be Sub)
Sophomore $10,500 $7,875 $5,250
($4,500 can be Sub) ($3,375 can be Sub) ($2,250 can be Sub)
Junior/Senior $12,500 $9,375 $6,250
($5,500 can be Sub) ($4,125 can be Sub) ($2,750 can be Sub)

Grade Level 18 Hours/Year (100%) 12 Hours/Year (67%) 10 Hours/Year (56%)
Graduate $20,500 $13,735 $11,480

What This Means for You

  • Your loan amount each semester will depend on how many credit hours you take.
  • Taking fewer than 12 hours per semester (9 hours for graduate students) will reduce your loan eligibility.
  • Withdrawing from classes will reduce your loan eligibility.

Students enrolled in less than full time will receive less loan funding than in previous years.

We encourage you to carefully consider your enrollment level when planning your schedule each semester.

New Loan Limits

The legislation does not change the undergraduate lifetime borrowing limit, but does change the lifetime borrowing limit of graduate students. New graduates borrowing for the first time have a lifetime maximum of $100,000.

  • Legacy Provision: Students who have been continuously enrolled in the same degree type (Bachelor's, Master's, etc) and have borrowed a Federal Direct loan that was disbursed prior to July 1, 2026, will have a legacy provision that requires that they borrow based on previous loan limits through June 30, 2029 or for the remaining length of the program, whichever comes first. For instance, a student who has been enrolled in a 4-year bachelor's program for 3 years as of July 1, 2026 will fall under the legacy provision for 1 year following July 1, after which they will borrow under the new limits.

No student may receive more than half of their annual loan amounts in one semester, regardless of legacy status.

Parent Plus

Parents of dependent undergraduate students who borrow a parent PLUS loan on or after July 1, 2026 may borrow up to $20,000 per year per student with an aggregate limit of up to $65,000 per student.

It’s important to note that these limits are combined limits — meaning if multiple parents apply for a PLUS loan for their student, the combined total for all PLUS loan borrowers cannot exceed $20,000 for the year or the $65,000 aggregate limit per student.

The previous borrowing limit for Parent PLUS loans was up to the student's Cost of Attendance for the semester or year with no lifetime maximum limit.

  • Legacy Provision: Students who are continuously enrolled and have borrowed a Federal Direct loan that has been disbursed prior to July 1, 2026, will qualify for the legacy provision that requires that they borrow based on previous loan limits through June 30, 2029 or for the remaining length of the program, whichever comes first. For instance, a student who has been enrolled in a 4-year bachelor's program for 3 years as of July 1, after which they will borrow under the new limits.

Pell Grant Changes:

Starting in Fall 2026, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. An applicant with an SAI equal to or greater than $14,790 for the award year is ineligible for a Pell Grant.

Students who receive grants or scholarships from non-federal sources, including state and McNeese scholarships, covering their entire Cost of Attendance are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

This will impact a limited number of students and institutional policy is to award to the maximum benefit of the student.

Helpful Links:

What Graduate Students Need to Know

What New Parent Borrowers Need to Know

What Current Parent Borrowers Need to Know

 

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