On July 4, 2025, the President signed the final version of the One Big Beautiful Bill Act (OBBBA) (H.R.1) which included some substantial changes to federal student aid. We're currently reviewing what the legislation means and are still waiting on additional guidance from the U.S. Department of Education in several areas. While it's too soon to know all the impacts, the University is focused on how these changes could affect students—especially when it comes to new limits on graduate and parent borrowing. Most of the financial aid changes are expected to take effect starting July 1, 2026, unless noted otherwise. This information is subject to change as we receive additional information and guidance from the Department of Education.
Changes by Student Type
Undergraduate Students
| Policy Area | Updates |
|---|---|
| Schedule of Reductions | Borrowers enrolled in less than full-time (12 hours) will only be able to borrow a prorated maximum loan offer based on enrollment hours. |
| Federal Pell Grant Eligibility | Ineligible to receive Pell if your cost of attendance is already covered by other non-federal grants and/or scholarships. |
| Parent PLUS Loan Limits | $20,000 academic year/$65K lifetime per dependent student |
| *If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent may be able to borrow under the old loan limits for 3 academic years or the remainder of their dependent student's expected time to credential, whichever is less, as long as they remain in the same academic program during that time. | |
Graduate Students
| Policy Area | Updates |
|---|---|
| Schedule of Reductions | Borrowers enrolled in less than full-time will be offered a prorated maximum unsubsidized loan based on enrollment. Full-time for most graduates is 9 hours. Master of Science in Nursing students are full-time at 5 hours. |
| Student Loan Limits | $20,500 academic year/$100K lifetime for graduates |
| Graduate PLUS Loans | Eliminated if you begin your academic program on or after July 1, 2026* |
| Borrowing Cap | $257,000 borrowing cap on all federal loans (Excludes Parent Plus loans, includes undergraduate federal loans) |
| *Current graduate students can continue under the existing loan limits and may keep using Graduate PLUS loans—but only for a limited time. This eligibility lasts until the earlier of: (1) the end of their current academic program, or (2) three academic years within the same academic program. To determine how much eligibility a student has left, we must take the total length of their program and subtract the time they've already been enrolled. A "current borrower" is a student who borrowed at least one Graduate PLUS or Direct Unsubsidized Loan before July 1, 2026, and who stays in the same academic program after that date. | |
Changes for All Students
| Policy Area | Updates |
|---|---|
| Loan Repayment Plans |
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Looking Ahead: 2026-27 & Beyond
Graduate Student Loan Borrowing Limits
Effective July 1, 2026, the expected time for a student to complete a program that is equal to or the lesser of:
- Three academic years, as defined in 34 CFFR 668.3; or
- The period determined by calculating the difference
- the program length of a student in which is enrolled; and
- the period of such program of study that such individual has completed as of the date of determination
All information is tentative pending issuance of final regulatory text by the Department of Education.