The One Big Beautiful Bill Act (OBBBA) and Financial Aid
— Important updates you need to know
The OBBBA introduces a number of changes to financial aid that affect all student types, including prospective, undergraduate, and graduate students.
Changes include limits and requirements for federal loans, repayment options for new and current borrowers, and pell eligibility calculations.
The Office of Student Financial Aid is closely monitoring the changes and their implementation. They will continue to update this resource as information becomes available.
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Loans
New Caps for Loan Totals
Parent PLUS
- $20,000 per year per dependent student
- $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged)
Graduate
- $20,500 per year for graduate students, with an aggregate limit of $100,000
- $50,000 per year for professional students, with an aggregate limit of $200,000
Lifetime
- Lifetime borrowing (across undergraduate and graduate education) is capped at $257,500 on all federal student loans except for Parent PLUS
Enrollment Requirements
All loans are now prorated for students with less than full-time enrollment (FTE)
| Student Type | Full-time Enrollment Credit Requirement |
|---|---|
| Undergraduate | 12 or more |
| Graduate | 9 or more |
Graduate PLUS Loans
- Graduate PLUS loans have been eliminated.
- There is a legacy provision for current borrowers (those who borrowed a Graduate PLUS loan before July 1, 2026 while enrolled in a credentialed program), who can borrow from the GradPLUS program for three academic years or the remainder of their program, whichever is less.
Repayment Options
New Income-Based Plan: The Repayment Assistance Plan (RAP)
- RAP monthly payments are calculated based on Adjusted Gross Income (AGI).
- $10 minimum monthly payment is required, and a borrower's RAP monthly payment is based on their AGI and number of dependents.
- Income and dependents are calculated separately for married borrowers who filed taxes separately from their spouses.
- Borrowers who don't have an AGI or whose AGI doesn't reasonably reflect the borrower's current income are required to provide the Department of Education (ED) with documentation to calculate their monthly payments.
For New Borrowers
- A standard repayment plan with fixed monthly payments and fixed terms ranging from 10 to 25 years based on the amount borrowed.
- The new RAP plan.
For Current Borrowers
- Eligible to enroll in the Standard, Income-Based (IBR), Graduated, and Extended repayment plans, or can opt into RAP.
- Those enrolled in the Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they well be moved to RAP.
Pell Eligibility
The following changes go into effect July 1, 2026, meaning they will begin applying in the 2026-27 award year.
New Factors for Pell Eligibility
- Now considered:
- Foreign Income
- Now included in the Adjust Gross Income used to calculate Pell Grant eligibility
- Foreign Income
- No longer considered:
- Small businesses
- Those with no more than 100 full-time employees that are owned and controlled by the family
- Family-owned farms where the family resides
- Family-owned commercial fisheries
- Small businesses
Who is No Longer Eligible
- Students whose SAI exceeds twice the maximum Pell Grant award
- The maximum Pell Grant is currently $7,395, meaning a student with an SAI of 14,790 or more is ineligible for the Pell Grant.
- Students receiving scholarships that cover the full cost of attendance
- Students enrolled less than half-time (6-8 credits)