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ONE BIG, BEAUTIFUL BILL ACT (OBBBA) FEDERAL STUDENT AID CHANGES STARTING July 1, 2026

Changes to federal financial aid eligibility and Direct Loan programs are coming as of July 1, 2026. These changes may impact how students and their families have been funding their college costs up until now. ºÚÁÏÍø’s Office of Financial Aid wants to be sure that you and your family are aware of the forthcoming changes related to One Big, Beautiful Bill Act (OBBBA) so you can be prepared for Fall 2026 and beyond. Please review the following and visit the for the most up-to-date information.

The information provided is based on the current interpretation of the law and may be subject to changes. As more information becomes available from the U.S. Department of Education, our office will continue to monitor the development of the federal regulations associated with the bill and provide updates accordingly.

UNDERGRADUATE STUDENT CHANGES:

• Annual borrowing limits remain the same for undergraduate students. For Dependent Undergraduate Students, the first year borrowing limit is $5,500 (up to $3,500 can be subsidized). The second year borrowing limit is $6,500 (up to $4,500 can be subsidized). For the third and beyond, the borrowing limit is $7,500 (up to $5,500 can be subsidized). For Independent Undergraduate Students and Dependent Parents denied PLUS, the first year borrowing limit is $9,500 (up to $3,500 can be subsidized). The second year borrowing limit is $10,500 (up to $4,500 can be subsidized). For the third year and beyond, the borrowing limit is $12,500 (up to $5,500 can be subsidized).
• Parent PLUS loan borrowers will be limited to $20,000 a year per student.
• Parent PLUS loan borrowers’ lifetime aggregate limit will be $65,000 per student.
• Direct student loan offers will be reduced for students who are enrolled less than full time for the academic year.
• Beginning with the 2026-2027 academic year, if you have a Student Aid Index (SAI) that is equal to or greater than twice the amount of the maximum Pell Grant award, you will no longer be eligible for the Pell Grant during that academic year. (Currently, this would make an applicant with an SAI equal to or greater than $14,790 ineligible for a Pell Grant.)
• Beginning with the 2026-2027 academic year, if you receive scholarships, grants or other aid (excluding loans) from non-federal sources that cover your total cost of attendance (COA), you will be ineligible for a Pell Grant for the academic year, even if otherwise eligible for the program.

GRADUATE/PROFESSIONAL STUDENT CHANGES:

• The Graduate PLUS loan will no longer be available to new borrowers, effective July 1, 2026.
• Direct Unsubsidized borrowing limits remain $20,500 annually with a maximum of $100,000 per graduate student (non-professional).
• Direct Unsubsidized borrowing limits will be $50,000 annually with a maximum aggregate of $200,000 per professional student. ºÚÁÏÍø offers only one professional program that meets this criterion, which is the Doctor of Physical Therapy.
• Direct student loan offers will be reduced for students who are enrolled less than full time for the academic year.
• The maximum lifetime aggregate per student borrower will be $257,500. The new lifetime loan limit of $257,500 includes student borrowing for undergraduate, graduate, and professional study. Borrowers who have received a loan for a program that has already started as of June 30, 2026, will be exempt from these borrowing caps for the remainder of their program length with a maximum of three years.

We encourage you to reach out to the Office of Financial Aid with any questions.