On July 4, 2025, the One Big Beautiful Bill Act was signed into law by the President of the United States, resulting in some changes to the federal student aid programs. These changes will go into effect for the 2026-2027 academic year.
These changes include:
- Federal student loan eligibility based on enrollment level
- Parent PLUS loan borrowing limits
- Federal Pell Grant eligibility and Cost of Attendance rules
Changes to the Pell Grant Program:
Beginning with the 2026–2027 award year:
- Students whose institutional, state or private scholarships and grants fully cover their Cost of Attendance will no longer be eligible to receive a Federal Pell Grant.
- Students with a Student Aid Index equal to or greater than twice the maximum Pell Grant award may not qualify for Pell eligibility
These changes may affect students who previously qualified for Pell Grants while also receiving significant scholarship support.
Changes to Federal Student Loans:
Beginning in Fall 2026, all student loans a student can receive will depend on their enrollment level. All students are awarded as a full-time student (12+ credits) and will be prorated or reduced based on actual credit hours enrolled as required by federal law.
Undergraduate students are considered full-time when registered 12+ credits per semester, totaling 24+ credits during the fall/winter academic year.
Federal student loans are also subject to lifetime (aggregate) borrowing limits for undergraduate students:
- Independent undergraduate students: up to $57,500 total in federal student loans.
- Dependent undergraduate students: up to $31,000 total in federal student loans.
There is a new $257,500 Lifetime Maximum Aggregate Loan limit that includes undergraduate and graduate loans combined. The Lifetime Maximum Aggregate Loan limit applies without regard to any amounts that may have been forgiven, repaid, canceled or discharged
Undergraduate Enrollment (per semester) | % of Annual Loan Limit | Example Loan Amount (per semester) * |
| 12+ credits | 50% | $2,750 |
| 10 credits | 41.67% | $2,291 |
| 9 credits | 37.5% | $2,062 |
| 8 credits | 33.33% | $1,833 |
| 7 credits | 29.17% | $1,604 |
| 6 credits | 25.00% | $1,375 |
| 5-1 credits | 0% | $0 |
*Loan amounts in this example are based on $2,750, which represents one semester of eligibility for a dependent freshman student with a $5,500 annual loan limit. These are estimated amounts provided for illustration purposes only. Actual loan amounts may vary and are subject to origination fees or other applicable loan reductions. Loan calculations are based on registered Title IV-eligible credit hours and does not include billable contact hours.
Parent PLUS Loan Changes:
Beginning July 1, 2026, new federal limits apply to the Parent PLUS loans:
- Annual Limit: $20,000 per dependent student per academic year
- Lifetime (Aggregate) Limit: $65,000 per dependent student
These limits apply per student, and the annual and lifetime caps are combined for both parents. This means that if two parents borrow Parent PLUS Loans for the same student, their total combined borrowing cannot exceed $20,000 per year or $65,000 overall for that student. These limits apply without regard to any amounts that may have been forgiven, repaid, canceled or discharged.
Previously, parents could borrow up to the full Cost of Attendance (minus other aid). These new caps may impact families who rely on Parent PLUS funding to cover remaining educational expenses.