The One Big Beautiful Bill Act (OBBBA)

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 they are otherwise eligible for the program.

Students with High Student Aid Index (SAI)

Students will not receive a Federal Pell Grant if their SAI exceeds twice the maximum Pell Grant award. For the 2026–27 award year, the maximum Federal Pell Grant award is $7,395, making the SAI cutoff 14,790 (7,395 x 2).

A new lifetime federal loan limit of $257,500 has been established for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study*. This maximum aggregate limit for all Federal Direct Loans includes Subsidized, Unsubsidized, and Grad PLUS loans. Once the limit is reached, you are no longer eligible for additional Title IV loans, even if you repay the money.

*There is no change to undergraduate aggregate loan limits

Interim Exception

Students may continue borrowing using the old program rules for up to three academic years or their time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:

• were enrolled in a program of study at an institution as of June 30, 2026; and

• received at least one Direct Loan (Subsidized/Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and

• are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.

Please note: The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student.

How to calculate your remaining time:

• Identify the total published academic length of your degree program

• Subtract the amount of time you have already completed by July 1, 2026

Example

If you are enrolled in a two year program and have already completed one year (two semesters) as of July 1, 2026, your expected time to complete your program is one year (two semesters).

You will be eligible to continue to borrow using the old lifetime limits for the remaining year, whether you complete your program or not. If you take additional time to complete the program beyond the published 2 years, you will be subject to the new rules and new aggregate loan limits.

Under OBBBA, federal student loan limits are subject to a Schedule of Reductions (SOR) for students who are enrolled less than full time in an academic year. Your annual loan eligibility is reduced proportionally based on the number of credits you are taking, if you enroll less than full time (less than 12 credits undergraduate and 9 credits graduate), .

The reduction applies to all Federal Direct Subsidized/Unsubsidized Loans for undergraduate, graduate, and professional students and Graduate PLUS loans for graduate and professional students. Parent PLUS loans are not subject to these adjustments.

Subsidized/Unsubsidized Examples

If you are a dependent first-year undergraduate, your combined annual loan maximum of Subsidized/Unsubsidized Loan is $5,500 (or $2,750 per semester). Semester loan limits are adjusted based on a $2,750 maximum baseline.

If you are Graduate Student, your annual loan maximum of Unsubsidized Loan is $20,500 (or $10,250 per semester). Semester loan limits are adjusted based on a $10,250 maximum baseline.

If you are a Professional Student, your annual loan maximum of Unsubsidized Loan is $50,000 (or $25,000 per semester). Semester loan limits are adjusted based on a $25,000 maximum baseline.

Graduate PLUS Loan

Graduate and Professional Students who qualify under the limited exception and may continue to borrow a Graduate PLUS Loan, are also subject to a reduction of their PLUS loan IF their final term of study is shorter than an academic year (enroll in a single semester) OR if they enroll less than full time (9 cr).

Begins with the 2026-27 academic year.

The Graduate PLUS loan program will be eliminated for new borrowers starting July 1, 2026 as part of the One Big Beautiful Bill Act (OBBBA).

Interim Exception

Students may continue borrowing using the old program rules for up to three academic years or their time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:

• were enrolled in a program of study at an institution as of June 30, 2026; and

• received at least one Direct Loan (Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and

• are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.

Please note:

• The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student

• Withdrawing from a semester or taking a leave of absence in considered to be a break in enrollment unless it is for a military assignment (180 days or less)

How to calculate your remaining time:

1. Identify the total published academic length of your degree program (e.g., 2 years or for a master's degree)

2. Subtract the amount of time you have already completed by July 1, 2026

Example

If you are enrolled in a two year program and have already completed one year (two semesters) as of July 1, 2026, your expected time to complete your program is one year (two semesters).

You will be eligible to continue to borrow a Graduate PLUS loan for the remaining year, whether you actually complete your program or not. If you take additional time to complete the program beyond the published 2 years, you will be subject to the new rules and no longer have access to use the Graduate PLUS loan.

Begins July 1, 2026.

The Unsubsidized annual and aggregate loan limits are changing based on whether a student is defined as a Graduate or a Professional student, is enrolled in the same program in 2026–27 as in 2025–26, and if the student previously borrowed in the Federal Direct loan program before July 1, 2026.

*This annual amount is not changing.

Please Note:

• These loan limits do not include amounts borrowed as an undergraduate.

• Students who are both graduate and professional students at some point in their educational career may only borrow up to $200,000 in total for graduate and professional school.

Begins July 1, 2026.

New first-time Parent PLUS loan borrowers have new annual and aggregate loan limits. All parents (combined) may borrow $20,000 per year ($10,000 per semester) for each of their dependent students. The total lifetime loan limit is $65,000 per dependent student.

Interim Exception

Parent borrowers are not subject to the new yearly and aggregate PLUS loan limits for up to three academic years or their student’s time to credential (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:

• were enrolled in a program of study at an institution as of June 30, 2026; and

• received at least one Direct Loan (Subsidized/Unsubsidized/PLUS) for such program of study prior to July 1, 2026; and

• are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.

Please note: The interim exception is based on time to complete a degree and NOT credits taken by the student, even if you are traditionally a part-time student.

How to calculate student's remaining time:

• Identify the total published academic length of the student’s degree program

• Subtract the amount of time the student has already completed by July 1, 2026

Example

If your student is enrolled in a four year program and has already completed two years (four semesters) as of July 1, 2026, their expected time to complete their program is two years (four semesters).

You will be eligible to continue to borrow the PLUS loan, under the old rules for the student’s remaining two years, whether they complete their program or not. If the student takes additional time to complete the program beyond the published 4 years, you will be subject to the new rules and new loan limits.

Begins July 1, 2026.

A federal court has temporarily halted the implementation of a portion of the Department of Education’s (ED) narrowed professional degree definition from its Reimagining and Improving Student Education (RISE) final rule, just days before the rule was set to take effect on July 1, 2026.

The decision, which applies nationally, temporarily reverts to the current three-part standard for professional degree programs at 34 CFR 668.2 until the court issues a final decision on the full merits of the case.

As of November 6, 2025, a professional student is defined as a student enrolled in a program of study that awards a professional degree, as defined under section 34 CFR 668.2.

Examples include but are not limited to:

• Veterinary Medicine (D.V.M.)

• Law (L.L.B. or J.D.)

• Pharmacy (Pharm.D.)

• Dentistry (D.D.S. or D.M.D.)

• Chiropractic (D.C. or D.C.M.)

• Medicine (M.D.)

• Optometry (O.D.)

• Osteopathic Medicine (D.O.)

• Podiatry (D.P.M., D.P., or Pod.D.)

• Clinical Psychology (Psy.D. or Ph.D.)

• Theology (M.Div., or M.H.L.).

The Department of Education has proposed defining a professional degree as:

“(i) Signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor's degree;

(ii) Is generally at the doctoral level, and that requires at least six academic years of postsecondary education coursework for completion, including at least two years of post-baccalaureate level coursework;

(iii) Generally, requires professional licensure to begin practice; and

(iv) Includes a four-digit program CIP code, as assigned by the institution or determined by the Secretary, in the same intermediate group as the fields listed in paragraph (2) (i) of this definition.”

No. The student is not enrolled in the same program in 2026–27 as they were in 2025–26.

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