Texas Tech University

Financial Aid News

On July 4th, the President signed into law the final version of the One Big Beautiful Bill Act (OBBBA) (H.R. 1) (“BBB”). We are closely reviewing the impact of this legislation and are awaiting further guidance from the U.S. Department of Education in many areas. While it is too early to determine all the effects, the University is focused on understanding how the legislation will affect students, particularly in terms of new limits on graduate and parent borrowing. The changes impacting financial aid are scheduled to go into effect starting July 1, 2026, unless otherwise stated.

A note to you about aid at Texas Tech:

We remain fully committed to accessibility and affordability. We want to reassure you that:

  • We will continue to ensure students can study at Texas Tech regardless of their ability to pay.
  • Despite reductions at the Department of Education, we are working to prevent any disruptions to federal financial aid.
  • Our financial aid office is here to support you, and we encourage anyone with questions or concerns about financial aid to contact us. We are committed to ensuring a smooth process and assisting our students.

Policy Area

Final Measure
Pell Grant Eligibility
  • Maintained traditional 12-credit/semester;
  • Continued access for part-time students
  • Ineligible to receive if cost of attendance is already covered by other non-federal grants
Max Pell Grant Amount remains unchanged
Student Loan Limits
  • $20,500 academic year/$100K lifetime for graduates
  • $50,000 academic year/$200K lifetime for professional students*
Parent PLUS Loan Limits
  • $20,000 academic year/ $65K/parent lifetime per dependent student
Graduate PLUS Loans Eliminated starting on or after July 1, 2026**
Repayment Plans
  • Implemented RAP with rates 1% to 10% of discretionary income
  • Eliminated SAVE plan
  • Extended forgiveness periods to 30 years
  • Introduced minimum monthly payments
Public Service Loan Forgiveness (PSLF)
  • Maintained provision that medical/dental internships/residencies count towards PSLF.

*The bill currently defines professional students as those pursuing degrees in Medicine, Dentistry, Law, Physical Therapy, and Pharmacy. We are awaiting guidance on which programs are considered "professional" from the Department of Education.

**Current Graduate/Professional students can finish out their current program under the old loan limits with Graduate PLUS loans until the end of their academic program, or three academic years, whichever is first. Current borrowers are defined as those who have at least one Graduate PLUS loan prior to June 30, 2026.

Sec. 81001. Effective July 1, 2026:

  • Establishes annual and aggregate loan limits for graduate and professional students.
  • Terminates graduate and professional PLUS loans effective for first-time borrowers.
  • Must prorate annual loan amounts in proportion to the percent of full-time enrollment.
  • $257,000 borrowing cap on all federal loans. (Excludes Parent Plus loans.)

Financial Aid

© 2025  Texas Tech University Aug 7, 2025 11:47 AM