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Financial Aid

One Big Beautiful Bill Act

Effective 2026-2027

The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced significant updates to Federal Student Aid programs. The information below outlines the key changes that may impact your financial aid. These changes take effect for the 2026–2027 academic year. However, there are some legacy provisions in place for current borrowers, as outlined below.

While we do not yet have all the details on how these changes will be implemented, we are closely following updates from the Department of Education and will continue to update this webpage as more information becomes available.

Summary of Changes

  1. Pell Grants

    • Students whose grants and scholarships fully cover their Cost of Attendance will no longer be eligible to receive a Pell Grant.
    • Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant award amount will not be eligible to receive a Pell Grant.

  2. Student Aid Index/FAFSA Formula

    • Families are no longer required to report the net worth of a family farm or a family-owned small business as an asset on the FAFSA.

  3. Undergraduate Loans

    • The annual Parent PLUS loan limit is now capped at $20,000 per student for all parent borrowers.
    • The aggregate (lifetime) Parent PLUS loan limit is now capped at $65,000 per student for all parent borrowers.
    • The annual Federal Direct Loan amounts will be prorated based on enrollment status, in direct proportion to the percentage of full-time enrollment.

  4. Graduate Loans

    • The annual Federal Direct Loan limit is set at $20,500 for most graduate students and $50,000 for professional programs, and will be prorated based on enrollment status in direct proportion to the percentage of full-time enrollment.
    • The aggregate Federal Direct Loan limit is $100,000 for graduate programs, and $200,000 for professional programs, not including undergraduate borrowing.
    • The Graduate PLUS Loan Program has been eliminated.
    • A new lifetime borrowing limit of $257,500 applies to all Federal Student Loans, including undergraduate and graduate borrowing.

  5. Legacy Provisions for Current Borrowers

    The following provisions apply to current borrowers who are enrolled in a program that began prior to July 1, 2026:

    • Parent PLUS borrowers will not be subject to the new annual or lifetime loan maximums for up to three academic years or for the remainder of their student’s current program, whichever is shorter.
    • Graduate PLUS borrowers may continue borrowing under the PLUS loan program for up to three academic years or for the remainder of their current program, whichever is shorter.
    • Graduate Direct Loan borrowers will retain the current aggregate loan limit of $138,500, which includes both undergraduate and graduate loans, for up to three academic years or for the remainder of their current program, whichever is shorter.

FAQ

Students who begin a new program on or after July 1, 2026 will be subject to the new federal student loan provisions.

If you are enrolled in a program that began before July 1, 2026, you’ll continue under the current (legacy) provisions for up to three academic years or for the remainder of your current program, whichever comes first. After that period, the new rules will apply.

Yes. Parent PLUS Loans will continue to be available. If you are enrolled in a program prior to July 1, 2026, your parents may continue borrowing under the current (legacy) provisions for up to three academic years or for the remainder of your current program, whichever comes first. After that period, the new rules will apply.

If you are starting a new program on or after July 1, 2026, your parents may still borrow Parent PLUS Loans, but the loans will be subject to the new borrowing limits of $20,000 per year and $65,000 total.

Yes. More than one parent can borrow a Parent PLUS Loan for the same student. However, the total amount borrowed between all parent borrowers can’t exceed $20,000 per year and $65,000 total for that student.
Yes. If you are enrolled in a program prior to July 1, 2026, the legacy provisions will apply. Under these provisions, you may continue borrowing for up to three academic years or for the remainder of your current program, whichever is shorter.
Yes. If you have borrowed any type of direct loan (Stafford or PLUS) and are enrolled in a program prior to July 1, 2026, the legacy provisions will apply. Under these provisions, you may continue borrowing for up to three academic years or for the remainder of your current program, whichever is shorter.
No. Only students enrolled in a program prior to July 1, 2026 will qualify for the legacy provisions.

No. You must be continuously enrolled in the same program you were enrolled in prior to July 1, 2026 to qualify for the legacy provisions. 

We’re still waiting on official guidance from the U.S. Department of Education about which programs will count as professional. Once we receive that clarification, we’ll update this page with the most accurate information.
If you’re enrolled less than full time, your annual Federal Direct Loan amount will be adjusted (prorated) based on your enrollment level. We’re still waiting on official guidance from the U.S. Department of Education about how that will work. Once we receive that clarification, we’ll update this page with the most accurate information.
As long as their business has fewer than 100 employees or they live on the family farm, they do not need to report the business as an asset on the FAFSA.
Yes, as long as your Pell grant and other scholarships are not greater than your Cost of Attendance (COA). If your total grants and scholarships are greater than your COA, institutional grants and scholarships would be reduced, and then the Pell grant if necessary would also be reduced, to fit within the COA. You can no longer receive Pell over COA.
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