2026 changes to US Federal Student Loans
The 'One Big Beautiful Bill Act' (H.R.1) introduces changes to US Federal Student loans – particularly those available to graduate and professional students – along with parent borrowers.
Massey is reviewing the legislation and awaiting guidance from the US Department of Education. Most changes that impact US Federal Student Aid go into effect on 1 July 2026. This page will be updated as information becomes available.
This notice was last updated on 25 July 2025.
On this page
- Massey manages federal aid for you
- Your loan is unique to you
- Borrowing money
- How you get your money
- Apply each year you need a federal loan
- Dependent and independent students
- Cost of Attendance
- Student Aid Index
- Currency exchange rates
- First conversion
- Second conversion
- Bachelor of Veterinary Science
- Manage your money
- Exit counselling
- Repayments
- Massey and US financial aid
- Contact us for help
- Related content
As a student from the United States at Massey University, you're likely to qualify for federal loans from the US government.
Massey manages federal aid for you
You apply directly to the US Government for federal aid and, if you qualify, Massey awards and processes your financial aid entitlement. Each institution has a different financial aid process, although some parts are the same.
Massey uses the information on your Free Application for Federal Student Aid (FAFSA) form to work out:
- the federal loans you qualify for
- how much you can borrow in different types of loans.
After you complete all the paperwork, we can put your financial aid package together.
Your loan is unique to you
As your education provider, Massey works out how much federal aid you can get using:
- your personal background
- the qualification you're applying for.
Usually, most US citizens and residents can get a federal loan. But the only way to know if you qualify or how much you could get is to apply.
Borrowing money
Loans from the federal government can help you pay for college studies. This form of financial aid is a loan with interest that builds up. You need to pay back:
- how much you borrow – the 'principal'
- interest on what you borrow.
As with all loans, you sign an agreement with a lender. If you take out a US federal loan, your lender is the US Department of Education.
You have a grace period of 6 months on all new loans before you must start repaying them. If you already had federal loans before studying at Massey, your repayments start when you graduate, drop below half-time enrolment or withdraw.
If you withdraw from your degree, you still need to pay back the amount you borrowed and any interest.
How you get your money
Federal aid money is not sent directly to your bank account. The US government disburses loan money to Massey. We use that money to pay your tuition fees. Then we transfer any money left into your New Zealand bank account. You use this money to pay for your accommodation and other study and living costs.
US government regulations require Massey to pay your federal aid to you in instalments, called 'disbursements'. So you must have enough money to cover your costs before your first disbursement is paid.
Apply each year you need a federal loan
If you want a US federal loan, you may need to apply for a new loan each year because:
- a federal loan covers your costs for 1 year or less
- most students need a federal loan each year of their degree.
Even if you’re a returning student, you must complete 2 forms each year to apply for a loan.
You don’t have to apply if you don’t need federal aid for the year, or you could borrow less than the full amount of your financial aid package.
Dependent and independent students
How much you can borrow in federal loans depends on whether you are a dependent or an independent student. You must state this when you fill in your Free Application for Federal Student Aid Form (FAFSA) each year.
If you're a dependent student, you must give information about yourself and your parents in your loan application.
If you're an independent student, you give information about yourself, plus that of your spouse if you're married.
Cost of Attendance
Your US financial aid package is based on the Cost of Attendance (COA) and the personal information on your loan application.
The COA is an estimate of how much an average student spends to complete a qualification at Massey.
Each year, the COA changes. We review it after tuition and non-tuition fees are updated.
The COA includes allowances for:
- books and study supplies of NZD $1,200 each year
- living costs, including rent, utilities, food and personal expenses – this varies by campus and city
- loan fees for federal aid loans
- travel to and from New Zealand – NZD $3,500 to pay for a return flight each year of study
- bus travel if you're studying in Auckland or Wellington – this covers the average cost of a bus pass because our Manawatū campus in Palmerston North has free bus travel.
You may have some study costs that are personal to you. Put these details in your loan application. We may be able to add these costs to your COA.
Examples of personal study costs include:
- child care for dependent children
- disability support.
What your COA doesn't include
If you're a New Zealand citizen or permanent resident as well as a US citizen, your COA doesn't include:
- compulsory health and travel insurance
- travelling to and from New Zealand.
Student Aid Index
Your Student Aid Index (SAI) score determines how much financial support you may need.
Your SAI score is calculated using the information you provided on the Free Application for Federal Student Aid (FAFSA) form.
Massey will subtract your SAI score from your Cost of Attendance to determine your financial need.
Currency exchange rates
Student loans are taken out and paid in US dollars, while your fees and living expenses need to be paid in New Zealand dollars. Currency exchange rates change, so the amount you get in New Zealand dollars may be much more or less than expected when thinking in US dollars.
When you're a student in New Zealand, your loan amounts are converted between NZ and US dollars twice. These separate exchange rate conversions take place at different times of the year.
First conversion
Massey must use US dollars in student loan applications. We convert New Zealand dollars to US dollars when working out your Cost of Attendance (COA). The COA is in US dollars in your financial aid package and award letter.
Massey University uses the average exchange rate from the previous year. For example, we use the 2025 average exchange rate for students who apply to study at Massey in 2026. The average exchange rate is updated each October.
The exchange rate for studying at Massey in 2026 is .60321 New Zealand dollars to 1 US dollar.
We do not redo the calculations when the exchange rate changes.
Second conversion
The US government sends US dollars for federal aid to Massey University's bank. The bank converts the funds to New Zealand dollars using the exchange rate on the day it received the money.
Bachelor of Veterinary Science
Massey's Bachelor of Veterinary Science is accredited by the American Veterinary Medical Association (AVMA). Massey's degree takes 5 years instead of the 8 years needed in the United States.
Even though this degree is an undergraduate degree at Massey, you can apply for a federal loan to study it as a postgraduate or professional qualification. To do this, you need an undergraduate degree or equivalent qualification first.
In the pre-selection part of the degree, in Semester 1, you are:
- counted as an undergraduate
- given the pro-rated Expected Family Contribution.
In the professional part of the degree, from Semester 2 onwards, you are:
- counted as a postgraduate
- eligible for Graduate PLUS loans.
Veterinary students usually:
- get student visas for 6 months to cover studying in the pre-selection part
- apply for a longer student visa if they are selected for the professional part of the degree.
Manage your money
Understand your finances now and build a strong foundation for your future. For example, it's wise to:
- make a realistic budget and stick to it
- pay loan interest while studying, so the interest doesn't mount up.
You can choose to pay loan interest:
- when you fill in your Master Promissory Note (MPN) for each loan
- at any time, by contacting your loan servicer.
Find out more about interest rates at Federal Student Aid
Find your loan servicers at Federal Student Aid
Learn about personal finances on MyMoney.gov
Exit counselling
You need to complete exit counselling:
- before finishing your degree
- if you drop below half-time enrolment
- if you withdraw from your degree.
We'll send you an email about exit counselling.
You need to do your exit counselling within a month of finishing your studies. The US government considers your studies finished on the last day of your final exam period. If you're an undergraduate, your final exams are usually in November. Massey University considers your studies finished on your graduation date.
Repayments
You need to repay federal student loans even if you:
- do not complete your degree
- don't have a job when you finish studying
- don't work in a job connected to your degree
- think your degree wasn't what you expected
- do not get a bill.
If you don't pay back your federal student loans, it may lead to:
- a bad credit score for you, so it's hard to take out other loans and get low interest rates
- forced repayments from your salary or wages – garnishments
- debt collection agencies contacting you
- losing state and federal payments, like federal tax refunds and social security benefits
- civil lawsuits and legal costs
- suspension of any professional licence you have.
Plan your federal loan repayments at Federal Student Aid
Starting your repayments
You need to start repaying your student loans when you stop studying. This means you start loan payments when your classes end, not after your graduation ceremony. You also need to complete exit counselling at this point, which helps you understand how you can repay your loans.
If you have a direct subsidised loan, you have a 6-month grace period before you need to start repayments.
Visit Federal Student Aid to:
Massey and US financial aid
The US Department of Education has approved Massey University to manage federal loans in financial aid packages for US students. Massey follows US government rules when dealing with US federal loans.
Massey University does not have a US Employer Identification Number (EIN), so we do not send out 1098-T forms.
Drugs and alcohol
If you are 18 or over, you can buy alcohol and tobacco in New Zealand.
Learn about New Zealand drug and alcohol laws
See Massey's policy on alcohol on campus
Student conduct
At Massey, all students need to follow our policies to study with us.
Financial advantage of studying at Massey
Studying at Massey is cheaper than studying in the USA.
Shorter degrees
In New Zealand, you focus on core classes in your degree and don't spend a year taking general education classes.
- A bachelor's or undergraduate degree in New Zealand takes 3 years instead of 4
- A master's degree in New Zealand takes, on average, 1 and a half years.
A shorter degree means you spend less on tuition, other fees, accommodation, meals, supplies and living expenses.
Strong exchange rate
Exchanging your US dollars for New Zealand dollars makes studying in New Zealand good value, especially if you face paying out-of-state tuition fees.
The average cost of attendance for a bachelor's degree in the US includes tuition, fees, books, supplies, room and board and other living expenses. This table shows the 2023 average costs of a bachelor's degree in US dollars, taken from College Tuition Compare.
| Average US attendance costs for 1 year | Average US attendance costs for 4 years | |
|---|---|---|
| In-state tuition fees | US $27,630 | US $110,520 |
| Out-of-state tuition fees | US $41,467 | US $165,868 |
Massey's average undergraduate tuition and living costs are:
- NZ $54,641 for 1 year
- NZ $163,923 for 3 years.
Convert New Zealand dollar amounts at the Bank of New Zealand
US students at Massey
The US Department of Education reports our 2022 cohort default rate is 0.0.
2022 is the most recent year for which we have a cohort default rate.
Contact us for help
Email if you have any questions.
Amy Odom
Office location Student Registry Building, Room 1.38
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