Financial Aid Impacts of the One Big Beautiful Bill Act

Effective for the 2026–2027 aid year, federal Pell Grant eligibility calculations will include foreign income as part of the Adjusted Gross Income used to determine eligibility.

Students who receive grants or scholarships from non-federal sources that cover their full Cost of Attendance (COA) are not eligible to receive a Pell Grant, even if they otherwise meet Pell Grant requirements.

Additionally, students will not be eligible for a Pell Grant if their Student Aid Index (SAI) is more than twice the maximum Pell Grant award.

Loan Amounts for Less Than Full-Time Enrollment

Effective for the 2026–2027 aid year, federal loan amounts may be reduced for students enrolled in fewer than 12 credit hours during a semester. Loan eligibility will be based on the student’s enrollment level for that term.

For example, a student enrolled in 6 credit hours may be eligible for approximately half of the annual loan amount available to a full-time student. Students must be enrolled in at least 6 credit hours to remain eligible for federal loans.

Please note that withdrawing from courses may reduce loan eligibility and could result in funds being returned to the U.S. Department of Education, even after loan funds have been disbursed.

Parent PLUS Loan Limit Changes

Effective for the 2026–2027 aid year, Parent PLUS Loan limits will change. Parents may borrow up to $20,000 per year per dependent student, with a $65,000 total aggregate limit per dependent student.

Legacy Provision

Parents who borrowed a Federal Direct Loan before July 1, 2026, for a student enrolled in a program of study may be eligible to continue borrowing under the current Parent PLUS Loan guidelines for a limited time. This allows borrowing up to the student’s unmet Cost of Attendance, with no aggregate limit.

This option is available for the shorter of:

• Three academic years, or 
• The remainder of the student’s expected time to complete their credential.

The new law replaces most existing income-driven repayment plans with a new federal student loan repayment framework. Borrowers currently enrolled in a standard repayment plan will not see changes to their repayment structure.

Borrowers enrolled in an income-driven repayment plan will need to transition to a new repayment plan by July 1, 2028. After that date, only two repayment options will be available:

Tiered Standard Repayment Plan
A traditional repayment structure with fixed payments over time.

Repayment Assistance Plan (RAP)
A new income-driven repayment plan that adjusts monthly payments based on the borrower’s income.

Borrowers who do not select a new repayment plan by July 1, 2028, will be moved into the Repayment Assistance Plan.

The Public Service Loan Forgiveness (PSLF) program will remain in place, and eligible borrowers may continue working toward loan forgiveness. Additional details about how PSLF will interact with the new repayment framework are subject to pending federal rulemaking.