Financial Aid News

Federal Student Aid Changes

One Big Beautiful Bill Act (2026 Updates)

On July 4, 2025, President Trump signed a reconciliation bill (the "One Big Beautiful Bill Act", or OBBBA) which contains many changes to federal financial aid programs that are set to go into effect on July 1, 2026. While the final rules and regulations have not yet been released, we are actively reviewing the legislation and will continue to share updates as additional guidance becomes available from the U.S. Department of Education and other relevant authorities.

New Loan Limits 

Graduate Students (Master's and Doctoral)

• Annual limit: $20,500
• Aggregate limit: $100,000

Professional Students (Law and Vet)

• Annual limit: $50,000
• Aggregate limit: $200,000

Please note: The limits do not include undergraduate borrowing

 Institutional Loan Limits

Institutions may establish lower program-level loan limits, but they must apply uniformly to all students in that program

 Graduate PLUS Loans Eliminated

The Graduate PLUS Loan program will be eliminated for new students starting Fall 2026.

Legacy Provision:

If you are enrolled in your current program and have received a disbursement of a federal Direct loan for your current program of study (including Direct unsubsidized loans or Graduate PLUS loans) loan before July 1, 2026, you will still be able to access federal loans at the current levels, including access to the Grad PLUS for:

• Three academic years, or
• The remainder of their program (whichever is less)

Students must remain continuously enrolled to maintain eligibility under the legacy clause. Withdrawals or leaves of absence for any reason will result in forfeiture of legacy status.

Loan Proration

Institutions will prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled.

• Students who are enrolled less than full-time over the course of an academic year will have their loan eligibility prorated in direct proportion to the percent of full-time status for which the student is enrolled. 

Undergraduate Parent Plus Loan

All Parents may borrow:

• Annual limit: $20,000 per student
• Lifetime limit: $65,000 per student (without regard to amounts forgiven, repaid, canceled, or discharged)

The maximum amount is per student, not per parent.

Legacy Provision:

 If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits for:

·        Three academic years, or

·        The remainder of their dependent student’s expected time to credential (whichever is less).

 Pell Eligibility Changes

Beginning with the 2026–27 award year:

• Students receiving non-federal grants or scholarships covering their full Cost of Attendance (COA) will not be eligible for Pell, even if otherwise eligible for the program.
• Students with a Student Aid Index (SAI) greater than twice the maximum Pell award will not qualify.
• Foreign income must be included when calculating Pell eligibility.
• Asset exemptions for:
  • Family farms
  • Family-owned small businesses
  • Family-owned commercial fisheries will be reinstated in the FAFSA formula.