FAFSA & Financial Aid Eligibility Changes
The One Big Beautiful Bill Act (H.R.1), signed into law on July 4, 2025, enacts changes that affect all student types, including prospective, undergraduate, and graduate students and become effective July 1, 2026. Changes include limits and requirements for Federal Loan funding, Federal Loan repayment options (for new and current borrowers), and Federal Pell eligibility calculations. These changes will be effective for the 2026-27 academic year, and do not impact the current 2025-26 year. The Office of Student Financial Services is closely monitoring the changes and their implementation. This resource will continue to be updated as more information becomes available. More information is available at One Big Beautiful Bill Act Updates | Federal Student Aid
Federal Direct Loan Program
- GraduatePLUS Loan Program
- This program is ending, effective July 1, 2026, and will no longer enroll new borrowers.
- Legacy Provision: If a borrower has a GradPLUS loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.
- ParentPLUS Loan Annual & Aggregate Limit
- All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
- Legacy Provision: If a borrower has a ParentPLUS loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
- Graduate & Professional Annual & Aggregate Loan Limits
- Caps the annual loan limits at $20,500 for graduate students and $50,000 for professional students. The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students, and does not include amounts borrowed as an undergraduate. (Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and professional school).
- Legacy Provision: If a borrower has a Direct Unsubsidized Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.
- Federal Loan Program Lifetime Loan Limits
- $257,500 lifetime borrowing limit on all federal student loans, excluding borrowed Parent PLUS loan amounts (in the case of a dependent student who had ParentPLUS borrowed on their behalf for education expenses).
- Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.
- Loan Proration
- Students enrolled less than full-time will have their federal loans prorated to match their enrollment.
- For example: A student who is enrolled 6 credits in Fall and 6 credits in Spring is enrolled 50% each term. Their loans will be prorated to 50% of their annual eligibility. If the student is eligible for $7,500 ($3,750 per term) at full-time for the two semesters combined, then their prorated amount will be reduced to $3,750 ($1,875 per term) to reflect their half-time enrollment.
Pell Grant Eligibility
- Foreign Income
- Requires that foreign income be included in the AGI used to calculate Pell Grant eligibility.
- Requires that foreign income be included in the AGI used to calculate Pell Grant eligibility.
- Full Cost of Attendance Scholarships/Grants
- Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
- Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
- Students with High SAI
- Prevents students from receiving Pell Grants if their SAI exceeds twice the maximum Pell Grant award.