2026-2027 Financial Aid Updates

Effective with the 2026-27 academic year, student loan borrowers enrolled less than full-time will have their loan amount recalculated to reflect actual enrolled hours. Any classes that are dropped or withdrawn after disbursement in one semester will impact a subsequent loan amount in the same academic year. UW Eau Claire's 2026-27 academic year includes Fall 26, Spring 27, and Summer 27.

Recalculation Formula

Number of credit hours enrolled for the academic year divided by Number of credit hours considered full-time times the Annual Loan Limit.

Recalculation Examples

Student Enrolled Part-Time

• Full-time for a UWEC undergraduate student is 12 credits per fall/spring term (24 credits per academic year).
• An undergraduate student enrolled in 6 credits in the fall and 6 credits in the spring is 50% enrolled in each term.
• Their loan will be recalculated to 50% of their annual eligibility.
  • If the student is a dependent freshman student, their annual full-time eligibility is $5,500, so their recalculated annual amount would be $2,750 ($1,375 per semester) to reflect their half-time enrollment for the fall and the spring.
  • If the student is an independent freshman student, their annual full-time eligibility is $9,500, so their recalculated annual amount would be $4,750 ($2,375 per semester) to reflect their half-time enrollment for the fall and the spring.

Dependent freshman student enrolled full-time (12 credit hours) but drops 3 credits

• Full-time for a UWEC undergraduate student is 12 credits per fall/spring term (24 credits per academic year).
• If enrolled full-time in both fall and spring semesters, they could receive $5,500/year ($2,750/semester).
• Drops to 9 credits in fall after aid has been disbursed. No changes to the fall loan disbursement are required at that point in time.
• Enrolls for 12 credits in the spring semester.
  • 9 credits in the fall + 12 credits in the spring = 21 annual credit hours
    • 21/24 credits is 88%
    • 88% of $5,500 = $4,840 would be the annual limit
    • Since $2,750 was received in the fall, subtract $2,750 from the new annual limit of $4,840, and the spring loan amount would be $2,090.
• If student enrolls in 15 credits for spring, they are still eligible for the full $5,500 loan. 9 credits in the fall + 15 credits in the spring = 24 credits. 

Independent freshman student enrolled full-time (12 credit hours) but drops 3 credits

• Full-time for a UWEC undergraduate student is 12 credits per fall/spring term (24 credits per academic year).
• If enrolled full-time both in fall and spring semesters, they could receive $9,500/year ($4,750/semester).
• Drops to 9 credits in fall after aid has been disbursed. No changes to the fall loan disbursement are required at that point in time.
• Enrolls for 12 credits in the spring semester.
  • 9 credits in the fall + 12 credits in the spring = 21 annual credit hours
    • 21/24 credits is 88%
    • 88% of $9,500 = $8,360 would be the annual limit
    • Since $4,750 was received in the fall, subtract $4,750 from the new annual limit of $8,360, and the spring loan amount would be $3,610.

Parent PLUS Loan Annual & Lifetime Limits

• Parent PLUS loan borrowers have new annual and lifetime loan limits.
• Parents may borrow $20,000 per academic year (defined as Fall, Winterim, Spring, Summer) per dependent student and $65,000 total per dependent student. 
• Limited Exception: The parent of a student who was enrolled in a program of study as of June 30, 2026, and received a Direct loan disbursement for that program of study (Subsidized, Unsubsidized or Parent PLUS) prior to July 1, 2026, may continue to borrow under the pre-July 1, 2026 Parent PLUS loan limits (Cost of Attendance minus Other Financial Assistance) for that same program for the lesser of three academic years or until they reach their time to credential (published program length minus the period of such program of study that the student has completed as of the date of the determination). 
  • If a student enrolled in a 4 year program enrolls in a 5th year, they will not qualify for the Limited Exception.
  • A change of major does not necessarily mean the student changed programs, however, changes to degree types (Associates to Bachelors) would be a program change. 
  • The student must maintain continuous enrollment in their program (excluding optional summer terms) to keep the limited exception status. 

Borrowing Examples – $20,000 annual maximum and $65,000 lifetime limit

• Parent borrows $65,000 in Parent PLUS Loans over four years, averaging $16,250 per year.
• Parent borrows annual max of $20,000. $20,000 could be borrowed for years 1 through 3, and $5,000 for year 4.
• Parent borrows annual max of $20,000 for the first two years and would have $12,500 remaining for year 3 and 4 each.
• Parent borrows $65,000 over five years, averaging $13,000 per year.

• Effective with the 2026-27 academic year, students who have scholarships covering their full cost of attendance will be ineligible for a Pell Grant if their total aid from other private, state, or institutional scholarships equals or exceeds their cost of attendance. Scholarships may need to be reduced in order to retain your Pell Grant eligibility.
• An applicant with a Student Aid Index (SAI) equal to or greater than twice the maximum Federal Pell Grant award amount for the award year is ineligible for a Federal Pell Grant. This limit does not apply to students who qualify for a Federal Pell Grant under the Special Rule (dependents of certain deceased service members and public safety officers).
• If you excluded foreign earned income from your tax return in accordance with U.S. tax law, that amount will be added back to the adjusted gross income (AGI) on the FAFSA form. It will be considered when when determining Federal Pell Grant eligibility.

• The Graduate PLUS Loan for graduate and professional students is being eliminated effective July 1, 2026 for new borrowers.
• Limited Exception: Students who were enrolled in a program of study as of June 30, 2026, and received a loan disbursement for that program of study (Unsubsidized or Graduate PLUS) prior to July 1, 2026, may be eligible to continue to borrow a Graduate PLUS loan for that same program for the lesser of three academic years or until they reach their time to credential (published program length minus the period of such program of study that the student has completed as of the date of the determination). The student must maintain continuous enrollment in their program to keep the limited exception status.
• Federal Regulations define program length as: "The minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution for a full-time student to complete the requirements for a specific program of study." Part time attendance does not extend a program's Program Length as it is always calculated based on the time it would take a full time student to complete the program.
• Example: A student enrolled in a program that has a published program length of 2 years, will begin their third year in the 2026-27 academic year (due to attending part-time). The student will not be eligible for the Limited Exception due to enrolling in a third year.

Effective with the 2026-27 academic year, undergraduate and graduate student loan borrowers enrolled less than full-time will have loan amount recalculated to reflect enrolled hours. Any classes that are dropped after disbursement in one semester will impact a subsequent loan amount in the same academic year. UW Eau Claire's 2026-27 academic year includes Fall 26, Spring 27, and Summer 27.

Recalculation Formula

Number of credit hours enrolled for the academic year divided by Number of credit hours considered full-time times the Annual Loan Limit.

Recalculation Examples

Student Enrolled Part-Time

• Full-time for a UWEC graduate student is 8 credits per fall/spring term (16 credits per academic year).
• A graduate student enrolled in 4 credits in the fall and 4 credits in the spring is 50% enrolled each term.
• Their loan will be recalculated to 50% of their annual eligibility.
• If the student is eligible for $20,500 ($10,250 per semester) at full-time for the two semesters combined, then their recalculated amount will be reduced to $10,250 ($5,125 per semester) to reflect their half-time enrollment.

Graduate student enrolled full-time (8 credit hours) and drops to 3 credit hours

• Full-time for a UWEC graduate student is 8 credits per fall/spring term (16 credits per academic year).
• If full-time both fall and spring semesters, they could receive $20,500/year ($10,250/semester).
• Drops to 3 hours in fall after initial disbursement. No changes to the fall loan disbursement are required at that point in time.
• Enrolls for 8 hours in the spring semester.
  • 3 hours in the fall + 8 hours in the spring = 11 annual credit hours
    • 11/16 credits is 69%
    • 69% of $20,500 = $14,145 would be the annual limit
    • Since $10,250 was received in the fall, subtract $10,250 from the new annual limit of $14,145, and the spring loan amount would be $3,895.

• Effective July 1, 2026 new loan limits will take effect for graduate students. Full-time graduate students may borrow up to $20,500 annually, with an aggregate limit of $100,000, excluding undergraduate borrowing. A $257,000 Lifetime Limit applies to all loans borrowed. The lifetime limit includes all Title IV federal student loans (Direct Loans, FFEL, Perkins, etc.), and it includes any amounts that have been repaid, canceled, forgiven, or otherwise discharged.
• Limited Exception: Students who were enrolled in a program of study as of June 30, 2026, and received a loan disbursement for that program of study (Unsubsidized or Graduate PLUS) prior to July 1, 2026, may be eligible to continue to borrow under the old loan borrowing limits (up to $20,500 Unsubsidized Direct Loan per year, $138,500 aggregate loan limit including undergraduate borrowing) for that same program for the lesser of three academic years or until they reach their time to credential (published program length minus the period of such program of study that the student has completed as of the date of the determination). The student must maintain continuous enrollment in their program to keep the limited exception status. Students who lose access to the limited exception will have the same yearly and lifetime limit as new borrowers listed above. Students cannot choose which lifetime aggregate limit applies to them, as it is defined by the Department of Education (ED).
• Professional Students (as currently defined by ED): New professional students, effective July 1, 2026, may borrow up to the cost of attendance or $50,000 per year (whichever is less) in Unsubsidized Direct Loans, with a lifetime limit of $200,000, excluding undergraduate borrowing. Additional programs may be added when federal regulations are finalized. UWEC does NOT have any programs that qualify at this time.

• The Repayment Assistance Plan (RAP) will become the only income-based plan.
• RAP monthly payments are calculated based on Adjusted Gross Income (AGI).
• A $10 minimum monthly payment is required, and a borrower’s RAP monthly payment is based on their AGI and number of dependents.
• Income and dependents are calculated separately for married borrowers who file taxes separately from their spouses.
• Borrowers who don’t have an AGI or whose AGI doesn’t reasonably reflect the borrower’s current income are required to provide the U.S. Department of Education (ED) with documentation to calculate their monthly payments.
• 30-year repayment period

The standard repayment plan has fixed monthly payments and fixed terms ranging from 10 to 25 years based on the amount borrowed. If you want a repayment plan based on your income, the only option available is RAP (the Repayment Assistance Plan).

• Borrowers who received loans exclusively before July 1, 2026, are eligible to enroll in the new or some of the existing payment plans: Standard, Income-Based (IBR), Graduated and Extended repayment plans, or RAP (the Repayment Assistance Plan). If any loans are borrowed after July 1, 2026, only the new RAP and Standard options are available.
• Those currently enrolled in the Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, borrowers will be automatically moved to RAP.