2026-27 FAFSA & Financial Aid Eligibility Changes

The One Big Beautiful Bill Act (H.R.1), signed into law on July 4, 2025, enacts changes to Federal Student Aid beginning with the 2026-27 academic year for both undergraduate and graduate students. 

Financial Aid Services is closely monitoring the implementation guidance and will update our website as changes are finalized by Federal Student Aid. Visit the Connect with Us page to make an appointment with a Financial Aid counselor to discuss your questions and aid options.

More information is available at One Big Beautiful Bill Act Updates | Federal Student Aid.

Federal Loan Changes: 

• Federal Parent PLUS Loan Annual & Aggregate Limit
  • All parents (combined) may borrow $20,000 per year per dependent student.
  • Federal Parent PLUS lifetime limit is capped at $65,000 limit per dependent student.
  • Borrowers of federal loans disbursed before July 1, 2026, will be exempt from the new borrowing caps for up to three years, or for the remaining time required to complete their existing program, whichever period is shorter. This time frame is based on the minimum published length of your program minus the time you have already completed.
• Federal Direct Loan Proration
  • Direct Loan offers to students enrolled less than full-time (under 12 credits per semester) will have their federal loans prorated to match their enrollment.
  • Students enrolled half time (6 credits) will be offered loans prorated to 50% of the maximum annual eligibility. Students with less than 6 enrolled credits are not eligible for Federal Direct Loans.
  • Changes to a student's enrollment after the add/drop date in the first semester of a loan period must now be considered prior to the disbursement of the student's loans in the second semester of the loan period.
  • In order to receive the maximum two-semester loan amount (i.e. the annual amount), students must be projected to receive at least 24 credits for the two-semester enrollment period as of the add/drop date of the second semester in that enrollment period.
  • Financial Aid Services will review students' enrollment shortly after the add/drop period ends each semester and will adjust students' aid to match their enrollment as appropriate.

Federal Graduate PLUS Loan Program

• Beginning in 2026-27, Graduate PLUS loans will no longer be available to new borrowers.
• Borrowers of federal loans disbursed before July 1, 2026, may continue to borrow Graduate PLUS loans for up to three years, or for the remaining time required to complete their existing degree program, whichever period is shorter. This time frame is based on the minimum published length of your program minus the time you have already completed.

Graduate Annual & Aggregate Loan Limits

• Annual loan limits for the Federal Direct Unsubsidized Loan remain at $20,500 for graduate students.
• The aggregate federal loan limit is capped at $100,000 for students at the graduate level.
• Borrowers of federal loans disbursed before July 1, 2026, will be exempt from the new borrowing caps for up to three years, or for the remaining time required to complete their existing degree program, whichever period is shorter. This time frame is based on the minimum published length of your program minus the time you have already completed.

Federal Loan Program Lifetime Loan Limits

• The lifetime borrowing limit on all federal student loans (undergraduate and graduate combined, excluding borrowed Parent PLUS loans) will be capped at $257,500.
• Borrowers of federal loans disbursed before July 1, 2026, will be exempt from the new borrowing caps for up to three years, or for the remaining time required to complete their existing degree program, whichever period is shorter. This time frame is based on the minimum published length of your program minus the time you have already completed.

Federal Pell Grant Eligibility

• Foreign income will be included in the AGI used to calculate the federal Student Aid Index (SAI) which is used to determine Pell Grant eligibility.
• 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 otherwise eligible for the program.
• Students whose SAI exceeds twice the maximum Pell Grant Award will no longer be eligible to receive Pell Grants.

New Repayment Options for Federal Student Loans

• Student loan borrowers currently have access to six different repayment plans: Standard, Graduated, Extended, Income-Based, Income-Contingent, and Pay As You Earn (studentaid.gov/manage-loans/repayment/plans). Students who have no new Federal student loan borrowing after July 1, 2026 will continue to have access to these six repayment options. The Income-Contingent Repayment Plan (ICR) and the Pay As You Earn (PAYE) plans will be phased out on July 1, 2028.
• Students who borrow any Federal student loan on or after July 1, 2026 will have access to only two repayment plans: a Tiered Standard Plan or the Repayment Assistance Plan.