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The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest program. Under this program, the U.S. Department of Education is your lender. Please visit for detailed information on Federal Student Loans.

2026-2027 Federal Direct Loan Changes 

beginning in the 2026-2027 award year. These changes primarily affect but are not limited to:

• Loan limits for students enrolled less than full-time
• New annual and lifetime borrowing caps
• Graduate PLUS Loans eliminated for new borrowers effective July 1, 2026
• Eligibility for income-based repayment plans
• Certain loan forgiveness options

For more information about federal loans and loan limits, please visit the .

As a transfer student, it’s your responsibility to know your annual loan limits for Federal Direct Loans and to have all pending disbursements canceled at your previous school before transferring to Embry-Riddle. This ensures a more accurate award package.

To avoid being over-awarded at Embry-Riddle, follow these steps:

• Cancel any pending financial aid disbursements at your previous school before transferring.
• Inform us of any financial aid received at another institution in the same academic year.

Before accepting a Federal Direct Loan(s) at Embry-Riddle, you must inform the Office of Financial Aid of any disbursements you received at another school during the academic year. Due to the timing of loans, we may not be aware of the total loan amounts you may have received at your other school. Failure to notify our office of any loans you received at another school during the year can result in your existing loans being reduced and billed in order to keep within the annual loan limits. This would result in a balance owed (by you) to Embry-Riddle.

Note: Your previous school may contact us directly using our contact information on the .

Don’t Over-Borrow

Over-borrowing or going into excess of your aggregate loan limits will prevent you from receiving any Federal Student Aid. To regain financial aid eligibility, you must make satisfactory arrangements with your loan holder and turn in the appropriate documentation to our office. Acceptable documentation may include but is not limited to:

• Payment confirmation from your loan servicer that you have paid the excess amount.
• Loan Summary Sheet from Direct Loans confirming you have consolidated all loans that were in excess.

To review your loan amounts and determine your loan holder (loan servicer), you must log into the .

Resolving a Loan Overage

If you have received loans in excess of the lifetime aggregates, you must choose one of the two options listed below to resolve the overage:

• Repay the excess loan amount by contacting the loan servicer listed in Federal Student Aid and following the servicer's instructions. Once the loan has been repaid, you must attach a copy of the repayment confirmation from the servicer to Embry-Riddle.
• Request a reaffirmation of loan funds with the loan servicer listed in Federal Student Aid. Contact the servicer and request a reaffirmation letter for the overage amount. Once you receive your reaffirmation letter, email it to:
• Worldwide Campus: wwfinaid@erau.edu
• Daytona Beach Campus: dbfinaid@erau.edu
• Prescott Campus: prfinaid@erau.edu

Note: Be sure to include your Student ID number when submitting.

Loan Repayment

Repayment Guides and Information

Exit Loan Counseling

All students receiving Federal Stafford Loans must attend an session prior to graduation, withdrawal from the university or if enrollment drops below half-time status.

Default Protection

Federal student loans can be very useful in helping cover education and living expenses, but it is important to keep in mind that loans must be repaid. Borrowers need to understand the responsibility that comes with student loan debt because their borrowing decisions will impact their ability to meet future financial obligations. The articles below can help borrowers learn more about responsible borrowing and successful repayment.