One Big Beautiful Bill Act

What has changed? 

• Federal loans are now treated as annual loans based on your total enrollment for the academic year (24 credits). 
• Schools must reduce loan amounts based on the percentage of credits you are enrolled in. 
• Effective for loans disbursed starting in the 2026-2027 academic year. 

What does this mean? 

• Full-time enrollment is 12 or more credits per semester. If you take fewer than 12 credits, your federal loan amount will be reduced. 
• If your enrollment changes during the year, your remaining loan funds may be adjusted in the next semester. 
  • Students who are enrolled in less than 24 credits Fall/Spring combined will see a reduced loan amount in their second semester. 

What has changed? 

• Students who receive grants or scholarships from non-federal sources that covers their full cost of attendance are ineligible to receive a Federal Pell Grant. 
• Students are no longer eligible for a Federal Pell Grant when a student's SAI equals or exceeds twice the maximum Pell award. 

What does this mean? 

• The maximum Pell grant for the 2026-2027 academic year is currently set at $7,395.
  • Students with an SAI greater than or equal to 14,790 are ineligible. 

What has changed? 

• Eligible parents may borrow a maximum of $20,000 per aid year per dependent student. 
• Per student aggregate loan limit of $65,000.

What has changed? 

• Borrowers who borrow new loans on or after July 1, 2026, will have 2 repayment plan options:
  • Standard Repayment Plan or Repayment Assistance Plan (RAP).
  • If no plan is chosen, borrowers will be placed in the Standard Repayment Plan automatically. 

What does this mean? 

• All loans must be repaid under the same repayment plan. 
• Borrowers with loans borrowed prior to July 1, 2026, who borrow again after that date, will be limited to the new Standard Repayment Plan or RAP. 
• Standard Repayment Plans have fixed payments that can span 10-25 years. 
• Repayment Assistance Plan (RAP) is income-based.

What has changed? 

• Borrowers who do not take out new loans on or after July 1, 2026, may continue using current repayment plans.
• Students may remain in or switch between existing income-driven plans through July 1, 2028.

What does this mean? 

• Borrowers currently enrolled in the Income Contingent Repayment (ICR), Pay As You Earn (PAYE) or Savings on a Valuable Education (SAVE) plan must choose a new repayment plan (either Standard or RAP) by July 1, 2028. 
• If no choice is made, borrowers will automatically be placed in RAP. 

What has changed? 

• Economic hardships and unemployment deferments will no longer be available. 
  • Effective July 1, 2027

What does this mean? 

• Borrowers with loans borrowed on or before July 1, 2027, may continue to use these deferment options under the current rules. 
• Once those loans are paid off, these deferments will no longer be available.