Appalachian School of Law wants to help you pursue your dream of becoming a lawyer. While the cost of law school attendance can be costly, there are many financial aid options, as well as local, regional, and national scholarships, to make it possible.

Browse our financial aid FAQ to learn more, or contact our department staff with your questions.

Federal Loan Updates for 2026–27

Important changes to federal student loan programs are coming.

Legislation recently passed by Congress, known as the One Big Beautiful Bill (OB3) Act, will result in significant modifications to the Federal Direct Loan program beginning with the 2026–2027 academic year (effective July 1, 2026).
These changes primarily affect graduate/professional students and parents of undergraduate students. If you are planning to utilize federal loans to finance your education in 2026–27 or later, we encourage you to review these updates carefully to understand how they may impact your financing plan.

Federal Student Aid has published updates and FAQs. You can view the updates on their OB3 Updates website.

For Graduate & Professional Students

The most significant changes concern the Graduate PLUS Loan program and new lending limits for Direct Unsubsidized Loans.

Elimination of Grad PLUS for New Borrowers
Effective July 1, 2026, the Federal Direct Graduate PLUS Loan program will be eliminated for new borrowers. This means you will no longer be able to borrow up to the full Cost of Attendance (COA) minus other aid using federal loans alone, unless you qualify for the “Legacy Provision” (see below).

New Loan Limits
The legislation establishes new annual and aggregate (lifetime) limits for Direct Unsubsidized Loans, distinguishing between “Graduate” and “Professional” students.

• Graduate Students (Master’s, PhD, etc.):
  • Annual Limit: Remains $20,500.
  • Aggregate Limit: Capped at $100,000 (does not include loans borrowed as an undergraduate).
• Professional Students (Medical, Dental, Law, Pharmacy, etc.):
  • Annual Limit: Increased to $50,000.
  • Aggregate Limit: Capped at $200,000 (does not include loans borrowed as an undergraduate).

Note: The Department of Education is currently finalizing the specific list of programs that qualify as “Professional.”

Legacy Provision (Grandfathering)

You may continue to borrow under the current rules (including Grad PLUS Loans up to the Cost of Attendance) for up to 3 additional years if you meet BOTH of the following criteria:

1. You are enrolled in the same credentialed program in 2026–27 that you were enrolled in prior to July 1, 2026.
2. You borrowed a federal student loan (Subsidized, Unsubsidized, or Grad PLUS) for that specific program before July 1, 2026.

If you change programs or start a new degree after July 1, 2026, you will be subject to the new limits.

New Lifetime Borrowing Cap

The legislation introduces a total aggregate lifetime limit of $257,500 for all federal student loans combined. This cap applies to the total outstanding principal balance of all your federal loans (Subsidized, Unsubsidized and Graduate PLUS loans).

Note: This aggregate limit excludes Parent PLUS loans.

How to Prepare

We understand these changes may create uncertainty as you plan for future years. Here are steps you can take now:

1. Check Your Loan History: Log in to StudentAid.gov to view your current total loan balance.
2. Understand Your Status: Determine if you will likely qualify for the Legacy Provision. If you are currently enrolled and have borrowed federal loans, you generally will.
3. Plan for the Gap: If you anticipate your costs will exceed the new federal limits (especially for new graduate students or parents), begin researching private student loan options or preparing personal savings.

We are here to help you. Please reach out to us if you have any questions.

The Office of Student Financial Aid is closely monitoring federal guidance. We will update this page as final regulations are published by the Department of Education.

Last updated: June 3, 2026