Effective for the 2026-2027 Academic Year
The One Big Beautiful Bill Act (OBBBA or OB3) was passed on July 4, 2025 and will impact certain Federal Student Aid programs starting July 1, 2026 for the 2026-2027 academic year.
This page is for informational purposes only and is based on the current understanding of the One Big Beautiful Bill Act’s proposed implementation by the U.S. Department of Education. This information is subject to change pending final regulatory text.
NEW PARENT PLUS LOAN BORROWERS
Parent PLUS Loan
- Annual Maximum Amount: $20,000 per year per student.
- Lifetime Maximum Amount: $65,000 per student—for parents borrowing under PLUS.
Lifetime Direct Loan borrowing amount
- $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.
IMPORTANT NOTE: Students who borrow the maximum amount of $20,000 per year, may run out of PLUS eligibility by their Senior year due to the $65,000 lifetime limit.
Legacy or (Grandfathered) Provision for Current Students
If the student or parent borrower received a Federal Direct Loan before July 1, 2026, while the dependent student was enrolled in the same program of study, Parent PLUS borrowing may continue under current loan limits for up to three academic years or the remainder of the student’s expected time to credential, whichever is less.
NEW GRADUATE STUDENTS
Unsubsidized Loan
- Annual Maximum Amount $20,500 per year.
- Aggregate Maximum Amount $100,000.
Lifetime Direct Loan borrowing amount
- $257,500 across all federal Direct Loans, which includes Undergraduate and Graduate borrowing.
IMPORTANT NOTE: The Grad PLUS Loan program is eliminated for new borrowers after July 1, 2026.
Legacy or (Grandfathered) Provision for Current Students
Borrowers who received a Federal Direct Loan before July 1, 2026, while enrolled in the same program of study, may continue borrowing under the Graduate PLUS program for up to three academic years or the remainder of their expected time to credential, whichever is less.
NEW BORROWER
Anyone who did not take out a loan during their current program study and before July 1, 2026 or will be starting a new degree program in the 26/27 academic year.
LOAN PRORATION
All students who are enrolled less than full time (12 credits undergraduate; 8 credits graduate) may have their loans prorated. Students are still required to be enrolled at least half time (6 credits undergraduate; 4 credits graduate) to borrow federal student loans.
PELL GRANT ELIGIBILITY
A student is ineligible for a Pell Grant if their total non-federal grants and scholarships already meet or exceed the financial aid Cost of Attendance (COA).