Federal Student Aid Changes (Effective July 1, 2026)

What You Need to Know

The One Big Beautiful Bill Act (OBBBA) was signed on July 4, 2025, and includes significant reform to Federal Student Aid programs. These changes may affect how much you can borrow and which federal loan programs are available to you.

You should review this information if you:

• Receive Title IV (TIV) Federal Aid (Federal Pell Grant and/or Federal Direct Loans)
• Plan to start a graduate or professional program in the 2026–2027 academic year
• Are continuing in the same graduate or professional program and borrowed federal loans before July 1, 2026
• Plan to change academic programs or institutions
• Expect to rely on graduate Direct PLUS Loans to cover educational costs

What Is Changing on July 1, 2026

The new law introduces several key structural changes to the federal loan landscape and the Pell Grant:

• Less-Than-Full-Time Loan Reduction: The University will be required to adjust the annual loan limit for borrowers enrolled less-than-full-time.
• Elimination of Graduate Direct PLUS Loans: Starting July 1, 2026, the Graduate Direct PLUS Loan program will be eliminated for new graduate and professional student borrowers.
• New Borrowing Limits: The act establishes updated annual, aggregate, and lifetime borrowing limits.
• Parent PLUS: Changes include new annual and aggregate parent PLUS Loan limits for new borrowers.
• Legacy Provisions: Some students may still qualify for previous loan structures under a limited legacy provision, provided they meet specific eligibility requirements.
• Federal Pell Grant Eligibility: Students are ineligible for Pell if their cost of attendance is fully covered by non-federal sources or if their Student Aid Index (SAI) is over twice the maximum Pell Grant.

Less-Than-Full-Time Loan Reduction

Prior to the 2026–2027 award year, you may have been eligible for the maximum annual loan limit for your academic year. Effective July 1, 2026, your loan eligibility will be determined in part by your enrollment status. Students enrolled less-than-full-time will have their loan eligibility reduced proportionally to their level of enrollment.

Graduate Plus Loan Changes

The graduate Direct PLUS Loan program will no longer be available to new graduate and professional student borrowers beginning July 1, 2026.

Legacy Provision

The law allows some students to continue borrowing from the graduate Direct PLUS program without being subject to the new Direct Unsubsidized aggregate and lifetime borrowing limits under a limited exception through their expected time to credential, or a maximum of three academic years, whichever is less.

Students may qualify for the legacy provision if they:

• Remain continuously enrolled in the same credential level program at the same institution as they were enrolled as of June 30, 2026, AND
• Received a Federal Direct Loan disbursement (unsubsidized or graduate PLUS) for that same program before July 1, 2026.

Unsubsidized Direct Loan Limits Beginning July 1, 2026

New annual and aggregate Direct Unsubsidized Loan limits apply to graduate and professional students who do not qualify for the legacy provision.

Graduate Students

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

Professional Students

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

Please note:

• These limits do not include amounts borrowed as an undergraduate.
• Students who are both graduate and professional students at different points in their education may borrow a combined maximum of $200,000 for graduate and professional study.

Parent Plus Loan Changes

Effective July 1, 2026, new annual and aggregate limits will apply to parent PLUS Loans.

• Annual Limit: $20,000 per dependent student
• Aggregate Limit: $65,000 per dependent student

Legacy Provision

For parent PLUS Loan borrowers to continue borrowing parent PLUS Loans under the previous loan limits instead of the new loan limits, a student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND either:

• The parent borrower must have had a parent PLUS Loan disbursed for that same program before July 1, 2026, OR
• The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.

If the above requirements are met, the new parent PLUS Loan limits do not apply while the student is completing their program, for up to the earlier of three academic years or the student’s time to credential, provided the student remains continuously enrolled.

Parents of current students who do not currently meet these criteria can still qualify for this legacy provision if:

• The parent borrows a parent PLUS Loan, and a disbursement is made before July 1, 2026, OR
• The student borrows a Direct Loan (subsidized or unsubsidized), and a disbursement is made before July 1, 2026.

The new limits will apply to any other dependent student in the family who first borrows on or after July 1, 2026.

Federal Pell Grant Eligibility

Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

Students are ineligible for a Pell Grant if their SAI exceeds twice the maximum Pell Grant award. Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.