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This Limited Exception allows certain currently enrolled students to continue borrowing under pre-July 1, 2026, federal loan rules for a limited period of time.
A student may qualify if:

• They were enrolled in a program of study on June 30, 2026;
• They remain enrolled in that same program; and
• A federal Direct Loan or Parent PLUS Loan was disbursed for that program before July 1, 2026.

Federal law limits eligibility for this exception to the lesser of:

• Three academic years, or
• The student's remaining expected time to credential as of July 1, 2026.
  

Example:

Students generally lose Limited Exception eligibility if they:

• Withdraw from the program,
• Stop attending,
• Cease enrollment in the program,
• Begin a different degree program after July 1, 2026, or
• Are enrolled beyond expected time to credential.

Students considering a leave of absence should contact Financial Aid before making enrollment changes.

Previous borrowing counts toward federal aggregate and lifetime limits.

However, Limited Exception eligibility is determined based on:

• Your current program at your current school, and
• Whether a qualifying loan was disbursed for that program before July 1, 2026.

No. Federal eligibility is determined by law and cannot be accepted or declined.

Annual limits remain unchanged:

Aggregate limits remain:

• $31,000 for dependent students
• $57,500 for independent students

Beginning July 1, 2026, federal Direct Loan limits are reduced proportionally for students enrolled less than full time.

Students must still be enrolled at least half time to remain eligible for federal student loans.

At Cedarville:

• Full time = 12 credits
• Half time = six credits

Parent PLUS loans are not subject to these reductions.

Yes. However, beginning July 1, 2026, new federal limits apply to students who do not qualify for the limited exception.

For students who do not qualify for the Limited Exception:

• $20,000 annual limit per dependent student
• $65,000 lifetime limit per dependent student

These limits apply across all parents combined for a particular student.

Yes. Federal guidance indicates that the new aggregate limit considers total Parent PLUS borrowing for the student, including borrowing that occurred before July 1, 2026.

Not necessarily.

Families that borrow $20,000 every year could reach the $65,000 lifetime limit before a student completes a four-year degree.

Families may wish to spread borrowing across multiple years to preserve eligibility.

No. Federal law does not provide additional Direct Unsubsidized Loan eligibility simply because a parent reaches the Parent PLUS aggregate limit.

Students may explore:

• Scholarships
• Employer tuition assistance
• Payment plans
• Private education loans

Students should carefully compare borrowing options and understand long-term repayment obligations before borrowing.

Yes. Beginning with the 2026–27 FAFSA, the following are generally excluded from FAFSA asset reporting:

• Certain family businesses
• Certain family farms
• Certain family-owned commercial fishing operations

Yes. Beginning with the 2026–27 award year, certain foreign earned income exclusions are added back into income when determining Pell Grant eligibility.

Possibly.

Beginning in 2026–27, students generally cannot receive a Pell Grant if non-federal grants and scholarships alone equal or exceed their cost of attendance.

Examples of non-federal aid include:

• Institutional scholarships
• State grants
• Outside scholarships

When permitted under federal regulations, Cedarville may adjust institutional aid to preserve Pell eligibility.

Yes. Beginning in 2026–27, students with an SAI at or above twice the maximum Pell Grant generally do not qualify for a Pell Grant.

For 2026–27, this SAI threshold is 14,790.

No. Federal Work-Study and Federal Supplemental Educational Opportunity Grant (FSEOG) programs continue to exist and remain subject to annual congressional funding.