One Big Beautiful Bill Act (OBBBA) Updates

Effective July 1, 2026 (2026–2027 Academic Year)

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant changes to federal student financial aid programs administered by the U.S. Department of Education.

These updates will take effect beginning with the 2026–2027 academic year.

  • The One Big Beautiful Bill Act will make big changes to federal student aid. Some of the changes are clear, but others still need more explanation from the U.S. Department of Education.
  • We know students, families, and staff have a lot of questions—so do we.
  • As we get more official updates, we’ll keep updating this page with the latest and most helpful information.

Federal Pell Grant Changes

  • Students whose Cost of Attendance (COA) is fully covered by non-federal aid will no longer be eligible for a Pell Grant.
    • Example: If scholarships cover your full COA, you will not receive a Pell Grant.
  • Students are not eligible if their Student Aid Index (SAI) exceeds twice the maximum Pell Grant award.
    • Example: If the maximum Pell Grant is $7,395, students with an SAI above $14,790 will not qualify.

Less Than Full Time Loan Adjustments

Full-Time Enrollment (Academic Year Requirement)

To be considered full-time for the academic year:

  • Undergraduate students: 24 credit hours (fall + spring)
  • Graduate/Professional students: 18 credit hours (fall + spring)

Half-Time Enrollment (No Change)

To receive a Federal Direct Loan each term:

  • Undergraduate students: Minimum 6 credits per semester
  • Graduate/Professional students: Minimum 3 credits per semester

Less-Than-Full-Time Enrollment

  • Beginning in 2026–2027, loan eligibility may be adjusted if you are not enrolled full-time for the full academic year.
  • Enrollment in one semester may impact loan eligibility in another.
  • Additional guidance, including summer enrollment, is pending from the Department of Education.

Graduate & Professional Student Loan Limits

Graduate Students

  • Annual limit: $20,500
  • Aggregate limit: $100,000
    (Undergraduate loans are not included.)

Professional Students

  • Annual limit: $50,000
  • Aggregate limit: $200,000
    (Includes graduate loans; excludes undergraduate loans.)

Legacy Provision

Students who borrowed a Federal Direct Loan before July 1, 2026, may continue under current limits for up to:

  • 3 academic years, or
  • The remainder of their program
    (whichever comes first)

Parent PLUS Loans

New Borrowing Limits

  • Annual limit: $20,000 per student
  • Lifetime limit: $65,000 per student

Note: Limits apply per student, regardless of how many parents borrow.

Legacy Provision

Parents who borrowed before July 1, 2026, may continue to borrow:

  • Up to Cost of Attendance (minus other aid)
  • For up to 3 academic years or until the student graduates

Important

  • Once the $65,000 lifetime limit is reached, students cannot borrow additional funds under independent student limits.

Graduate PLUS Loans

  • The Graduate PLUS Loan program will be eliminated for new borrowers beginning July 1, 2026

Legacy Provision

Students who borrowed prior to July 1, 2026, may continue borrowing under current rules for up to:

  • 3 academic years, or
  • Until program completion

Lifetime Federal Loan Limit

A new combined lifetime federal loan limit of:

$257,500

This includes all federal student loans:

  • Undergraduate
  • Graduate
  • Professional

Planning Ahead

Families who need funding beyond the new federal limits may consider:

  • Private student loans
  • Payment plans
  • Scholarships
  • Home equity or personal loans

Stay Updated

As federal guidance continues to be released, details are subject to change.

Our Financial Aid Office will continue to update this page as new information becomes available.

Federal Student Aid (FSA) released updated information on studentaid.gov regarding new changes to loan limits and repayment plans made under the One Big Beautiful Bill Act. That includes a list of different scenarios for student borrowers, Parent PLUS borrowers, borrowers pursuing Public Service Loan Forgiveness (PSLF), and other frequently asked questions. FSA also released a list of important definitions on the changes made under OBBBA, including what the new loan limits are, exceptions to these new loan limits, the new Repayment Assistance Plan (RAP), the new tiered standard plan, and more. FSA will continue to update these pages when new information becomes available.

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