Financial Aid Changes Under the One Big Beautiful Bill Act (OBBBA)
Important Updates You Need to Know
On July 4, 2025, the OBBBA, also referred to as the Working Families Tax Cuts Act, was signed into law, introducing major changes to federal financial aid that affects:
- Prospective students
- Undergraduate students
- Graduate & professional students
This page covers the following:
- Changes made under the OBBBA, including:
- Updated Pell Grant eligibility rules
- New loan eligibility guidelines based on enrollment
- New federal loan limits
- Changes to repayment options
- Actions students should take if they receive federal student aid.
Summary of Changes Effective July 1, 2026
Final federal regulations have been published, and the Office of Student Financial Aid is actively implementing these changes as required by law.
Jump to a section:
Pell Eligibility | Enrollment Eligibility | Loan Limits | Repayment Options
Pell Grant Eligibility Changes
- Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant are no longer eligible for a Federal Pell Grant.
- The current maximum Pell Grant is $7,395, so any student with a SAI of $14,790 or higher is ineligible.
- Students whose scholarships and aid fully cover their Cost of Attendance (COA) are no longer eligible for a Pell Grant.
- COA includes total estimated yearly costs for the following categories:
- Tuition and fees
- Food and housing
- Books and supplies
- Transportation
- Personal expenses
- Loan fees (if applicable)
- COA includes total estimated yearly costs for the following categories:
Enrollment and Loan Eligibility Changes
- Federal loan eligibility is now tied directly to how many credits you take.
- You must be enrolled at least half-time to receive any federal Direct Loan funding.
- You must be enrolled full-time for the entire academic year to receive the full annual maximum amount of your federal Direct Loan based on your academic level.
Full-time Enrollment Definitions
| Student Type | Full-time Credits (per semester) | Academic Year Total | Half-time credits (per semester) |
|---|---|---|---|
| Undergraduate | 12 credits | 24 credits | 6 credits |
| Graduate | 9 credits | 18 credits | 4.5 credits |
| Law | 10 credits | 20 credits | 4.5 credits |
What This Means:
Taking fewer credits now reduces loan eligibility.
Dropping or withdrawing from classes can:
- Lower your aid
- Trigger recalculations
- Create unexpected account balances
New Federal Loan Limits
| Student Type | Annual Limit | Aggregate Limit |
|---|---|---|
| Graduate | $20,500 | $100,000 |
| Professional | $50,000 | $200,000 |
| Lifetime Borrowing Limit | $257,500 total cap (undergraduate + graduate loans), not including Parent PLUS loans |
|---|
| Loan Type | Annual Limit | Aggregate Limit |
|---|---|---|
| Parent PLUS Loans* | $20,000 per dependent student | $65,000 per dependent student |
*Parent PLUS loan limits apply regardless of repayment, forgiveness, or discharge.
Graduate PLUS Loans Eliminated
Graduate PLUS loans are no longer available for new students entering programs on or after July 1, 2026.
Legacy (Grandfathered) Provisions for Loan Limits
Some borrowers may qualify for temporary continued eligibility for their previous loan limits if they meet all the following criteria:
- Enrolled in the same program before July 1, 2026
- Received a federal loan for that program before July 1, 2026
The legacy provision lasts for up to 3 academic years or until degree completion, whichever comes first.
Important Notice about Maintaining Legacy Provisions:
Students will lose their legacy eligibility and be subject to the new rules immediately if they:
- Withdraw, stop attending, OR
- Do not re-enroll by June 30, 2026
Transfer students will also lose legacy provisions if they change schools. A student must remain at the same institution in the same program of study to remain eligible for the legacy provisions.
Repayment Options
Read
Actions Students Should Take
Review your enrollment plans and financial aid package carefully in Patriot Web.
Speak with a financial aid advisor before making schedule changes.