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.

Limited Exception

Students are not subject to the new lifetime loan limit for up to three academic years or the remainder of their expected time to complete their program (whichever is less):

1. If they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026; and

2. They had a Direct Loan disbursed for that same program before July 1, 2026

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 Federal Graduate PLUS Loan program is discontinued for new borrowers.

Limited Exception

Students can continue to borrow under the Graduate PLUS program for up to three academic years or the remainder of their expected time to complete their program (whichever is less):

1. If they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026; and

2. They had a Direct Loan disbursed for that same program before July 1, 2026

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.

Limited Exception

Parent borrowers are not subject to the new lifetime loan limit for up to three academic years or the remainder of the student's expected time to complete their program (whichever is less):

1. If the student remains continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026; and

2. The student has had a Direct Loan disbursed for that same program or the parent has had a PLUS loan disbursed for that same program before July 1, 2026.

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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