Federal STUDENT Aid Changes
One Big Beautiful Bill Act (H.R.1)
Congress passed the One Big Beautiful Bill Act (H.R.1), which changes certain federal student aid rules. Below is a summary of what we know so far, what changes are coming, and how they may affect you based on your academic situation.
We are continuing to review guidance from the U.S. Department of Education and will share updates as more details become available.
Last updated: May 8, 2026
Quick Summary
Effective Date: Many changes will take effect in the 2026–2027 academic year (beginning July 1, 2026). Some items may have different effective dates pending federal guidance.
- Graduate/Professional Borrowing: The One Big Beautiful Bill Act (OBBBA) changes graduate and professional loan options, including the elimination of the Graduate PLUS Loan Program and the introduction of new borrowing limits based on program level.
- Parent Borrowing (Parent PLUS loans): OBBBA updates include new rules and annual borrowing limits for Parent PLUS Loans..
- Annual and Lifetime Limits: Annual and lifetime (aggregate) limits for Subsidized and Unsubsidized Loans will be adjusted.
- Loan Schedule of Reduction: Students enrolled less than full-time may see a reduced federal loan eligibility.
- Federal Pell Grant: Students whose full Cost of Attendance (COA) is covered by non-federal, state, or institutional grants or scholarships will no longer qualify for a Pell Grant.
Enrollment & Recalculated Loan Eligibility
While there are no changes to the annual amount which students can borrow as undergraduates, eligibility for part-time student loan borrowers will be prorated based on the enrollment status according to the student’s academic level (freshman, sophomore, etc.). An undergraduate student is typically expected to enroll in 12 credit hours or more per semester for a total of 24 credit hours during the fall/spring academic period. A student enrolled in 12+ credit hours for the fall semester would be eligible for 50 percent of the annual loan limit. To qualify for federal loans, students must still meet the minimum half-time enrollment requirement based on their academic level.
Undergraduate enrolled in less than full-time enrollment calculation
| Undergraduate Enrollment | Percent of the Annual Loan Limit |
|---|---|
| 12+ | 50.00% |
| 11 | 45.83% |
| 10 | 41.67% |
| 9 | 37.50% |
| 8 | 33.33% |
| 7 | 29.17% |
| 6 | 25.00% |
| 1-5 | 0% |
Dropping or withdrawing from a course may reduce federal loan eligibility. Students should check with an academic advisor before making changes to their course schedule.
Find Your Situation
Incoming first year students (2026-27 and beyond)
Students who receive non-federal grants or scholarships that fully cover their cost of attendance (COA) are not eligible for a Pell Grant, even if they would otherwise qualify.
- No changes to annual or aggregate loan limits.
- Institutions must prorate annual loan amounts based on the student’s enrollment level as a percentage of full-time status.
- Annual limit: $20,000 per dependent student (combined across all parents).
- Aggregate limit: $65,000 per dependent student (regardless of amounts repaid, forgiven, canceled, or discharged).
- Will the One Big Beautiful Bill Act (OBBBA) affect my financial aid offer for 2026–27?
OBBBA changes are expected to impact federal student aid rules beginning in 2026–27 for many students. Your eligibility will continue to be based on your FAFSA, your enrollment plans, and federal guidance as it is implemented. We will update this page as details are confirmed. - Does OBBBA affect the FAFSA?
No. OBBBA is about federal student aid policy. The FAFSA remains the starting point for determining eligibility for federal and many institutional aid programs. If any FAFSA-related steps change, we will publish clear instructions here and in your student portal. - If I already received an estimated aid offer, could it change?
Yes. Estimated offers may change due to:- Updates to federal rules.
- Verification or requested documents.
- Changes in enrollment (credits, residency, etc.).
- New scholarship information.
Final offers will reflect any updated federal guidance.
- What should I do right now?
- File the FAFSA as soon as it opens.
- Monitor your student portal and email.
- Complete any requested documents promptly.
- Review loan options and plan your budget early.
- Will this change my scholarships or merit awards?
OBBBA focuses on federal student aid. Institutional scholarships generally follow institutional policy. However, your total aid package must stay within overall eligibility limits, so changes to federal aid may affect how packages are finalized. - I’m planning to enroll part-time. Does that matter?
It can. Federal loan eligibility often depends on enrollment level. OBBBA will require loans to be reduced based on your enrollment. We will update this page as details are confirmed. - Will this affect Federal Work Study or Pell Grant?
Potentially, depending on the final guidance and your eligibility. If you are Pell Grant eligible or considering Federal Work-Study, we recommend completing the FAFSA early and monitoring updates on this page.
Current undergraduates students
Students who receive non-federal grants or scholarships that fully cover their cost of attendance (COA) are not eligible for a Pell Grant, even if they would otherwise qualify.
- No changes to annual or aggregate loan limits.
- Institutions must prorate annual loan amounts based on the student’s enrollment level as a percentage of full-time status.
Parent PLUS Loans starting July 1, 2026.
- Annual limit: $20,000 per dependent student (combined across all parents).
- Aggregate limit: $65,000 per dependent student (regardless of amounts repaid, forgiven, canceled, or discharged).
Legacy Provision:
Parents who borrowed a Parent PLUS Loan that was disbursed prior to July 1, 2026, and whose student remains continuously enrolled in the same degree program of study at the same institution may continue to borrow Parent PLUS funds for up to the student’s cost of attendance.
This continued eligibility applies for up to three (3) additional academic years or for the remainder of the student’s degree program, whichever is shorter.
If a parent does not qualify for a Parent PLUS Loan, the student may be eligible for additional Federal Direct Unsubsidized Loans.
- Does One Big Beautiful Bill Act (OBBBA) affect my current-year aid (2025–26)?
In most cases, major federal changes are expected to align with the 2026-2027 academic year. If any change affects you sooner, we will contact you directly and update this page. - Will I still be able to use federal student loans?
Yes. Federal Direct Loans remain a core federal program. What may change are specific limits or rules for certain borrower types and enrollment levels. We will clarify any updates that affect undergraduates as guidance is finalized. - If I drop below full-time, will my federal loans change?
Possibly. Federal loans already have enrollment requirements, and OBBBA may expand loan reduction for less-than-full-time enrollment. If you are considering dropping credits, talk to us first so you understand the financial aid impact. - Will my institutional scholarships change if federal aid rules change?
Scholarships usually follow their own terms. However, your total financial aid package must remain within federal limits, which may affect how aid is combined. - What if I need more funding than federal limits allow?
We can help you explore:- Payment plans
- Institutional resources (if available)
- Private educational loan options
Graduate and Professional Students
- Non-professional degrees
- $20,500 annually
- $100,000 aggregate
- Graduate professional degrees
- $50,000 annually
- $200,000 aggregate
Legacy Provision: Students who have borrowed a Federal Direct Loan before July 1, 2026, will benefit from a legacy provision that allows them to borrow based on previous loan limits for up to three academic years, or until the end of their academic program, whichever comes first. To qualify, students must remain enrolled in the same program of study at the same institution. Students may continue to borrow under existing regulations, including Grad PLUS Loans, up to the Cost of Attendance for a maximum of three additional years, provided they meet both of the following conditions:
- The student is enrolled in the same credentialed program during the 2026–27 academic year as they were before July 1, 2026.
- The student obtained a federal student loan (Subsidized, Unsubsidized, or Graduate PLUS) for that specific program prior to July 1, 2026.
If a student changes their major after July 1, 2026, they will no longer be eligible for the Grad Plus loan.
Eliminated effective July 1, 2026 (beginning with the 2026–2027 aid year).
Legacy Provision:
Borrowers who received a Federal Direct Loan prior to July 1, 2026, while enrolled in your original program of study at the original institution the legacy loans were received, may continue to borrow under the Graduate PLUS program for up to three (3) academic years or the remainder of their program length, whichever is shorter.
- What is changing for graduate/professional federal loans?
One Big Beautiful Bill Act (OBBBA) includes changes that may affect graduate/professional borrowing options and/or limits, including Federal PLUS loan related availability for graduate/professional students. Because implementation details matter, we will publish program-specific guidance (e.g., Medicine, Law, Business) as guidance is finalized. - What does “continuing borrower” mean, and does it apply to me?
“Continuing borrower” typically refers to students already enrolled and borrowing prior to a change. In the case of OBBBA, continuing borrowers are anyone prior to the July 1, 2026, effective date. Transition rules can vary by cohort, loan type, and timing.
Parents
- Annual limit: $20,000 per dependent student (combined across all parents).
- Aggregate limit: $65,000 per dependent student (regardless of amounts repaid, forgiven, canceled, or discharged).
Legacy Provision:
Parents who borrowed a Parent PLUS Loan that was disbursed prior to July 1, 2026, and whose student remains continuously enrolled in the same degree program of study at the same institution may continue to borrow Parent PLUS funds for up to the student’s cost of attendance.
This continued eligibility applies for up to three (3) additional academic years or for the remainder of the student’s degree program, whichever is shorter.
If a parent does not qualify for a Parent PLUS Loan, the student may be eligible for additional Federal Direct Unsubsidized Loans.
- If my student is starting in 2026–27, should I delay making plans?
No. Continue planning as usual: file the FAFSA early, review estimated costs, and explore financing options. We’ll update this guidance as federal details are finalized so you can make informed decisions. - Will this change my student’s scholarships or grants?
One Big Beautiful Bill Act (OBBBA) focuses on federal student aid. Scholarships are usually separate, but total aid must stay within overall eligibility rules. If federal components change, the composition of the package may shift. - What should parents do right now?
- Complete FAFSA contributor requirements early
- Review your family budget
- Plan for expected out-of-pocket costs