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Federal Financial Aid Changes Effective July 1, 2026

The One Big Beautiful Bill Act (OBBBA) introduces significant changes to Pell Grants, federal student loans, Graduate PLUS Loans, and Parent PLUS Loans that may affect financial aid eligibility, borrowing limits, and loan amounts. Review the information below to understand how these changes may impact students and families.

  • Federal Student Loan Changes – Undergraduate Students
    • Annual and aggregate Direct Subsidized and Unsubsidized loan limits remain unchanged.
    • New annual and aggregate limits for Parent PLUS loans:
    • If a borrower has a Federal Direct Loan disbursed before July 1, 2026, while the student is enrolled in a program of study, the student can continue to borrow under current loan limits for the shorter of three academic years or the remainder of their expected time to credential, pending final federal guidance. The student must remain continuously enrolled in the same program at the same institution to qualify. A student may not opt out of legacy provisions.
    • Federal Direct Student Loans will be reduced based on enrollment if a student is less than full-time (12 credit hours for undergraduates).
  • Federal Student Loan Changes – Graduate Students
    • The Grad PLUS loan program will be eliminated for students who begin a new graduate program on or after July 1, 2026.
    • If a borrower has a Federal Direct Loan disbursed before July 1, 2026, while the student is enrolled in a graduate program of study, the student can continue to borrow from the Graduate PLUS Loan program for the shorter of three academic years or the remainder of their expected time to credential, pending final federal guidance. The student must remain continuously enrolled in the same program at the same institution to qualify. A student may not opt out of legacy provisions.
    • New $100,000 graduate aggregate loan limit (not including undergraduate loans) and $257,500 lifetime aggregate borrowing limit (combined undergraduate and graduate loans).
    • Federal Direct Student Loans will be reduced based on enrollment if a student is less than full-time (currently 9 credit hours for graduates).
  • NEW RULE 2026-2027 - Schedule of Reduction (SOR)

    This is a new federal requirement beginning with the 2026–27 aid year. If you plan to enroll less than full-time — even by one class — your annual loan amount will likely be lower than in past years.

    • Federal law now requires ³ÉÈËAVÊÓƵ to reduce annual Direct Loan amounts for students enrolled less than full-time. This is called the Schedule of Reduction (SOR).
    • Annual loan eligibility is prorated in direct proportion to your enrollment.
    • SOR applies to Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans (including legacy borrowers). It does not apply to Parent PLUS Loans.
    • Students must be enrolled at least half-time (6 degree-applicable credit hours) to receive federal student loans.
    • Dropping classes during the year may require ³ÉÈËAVÊÓƵ to recalculate your annual loan eligibility.

Estimate Your Federal Loan Eligibility

  • Annual Loan Limit Eligibility Calculator

    Students enrolled less than full-time may have a reduced annual Direct Loan limit under federal Schedule of Reduction (SOR) rules. Use this calculator to estimate how your planned enrollment may affect your annual loan eligibility. Final eligibility is determined by ³ÉÈËAVÊÓƵ Financial Aid.

    STUDENT PROFILE, Select your FAFSA dependency status and current grade level.


    (View loan limits)

    MAXIMUM ANNUAL DIRECT LOAN LIMIT, Based on full-time enrollment

    Loan Type Amount
    Direct Subsidized $3,500
    Direct Unsubsidized $2,000
    Annual Total $5,500

    ENROLLMENT PLANS, Enter the credit hours you plan to enroll for fall and spring.



    Full annual loan eligibility for your program level is based on 24 credit hours during the academic year.

    ESTIMATED ANNUAL LOAN LIMIT ELIGIBILITY, Based on your enrollment plans

    Loan Type Eligibility Amount
    Direct Subsidized 100% $3,500
    Direct Unsubsidized 100% $2,000
    Annual Total $5,500

    Estimated reduction from full-time annual loan eligibility: $0
    Your planned enrollment meets the full-time basis. No SOR reduction applies to this estimate.

    Disclaimer: Calculator results are estimates only and do not guarantee loan eligibility or a specific award amount. Final eligibility is determined after review of federal, state, and institutional requirements, including enrollment, degree-applicable coursework, documented academic activity, withdrawals, Cost of Attendance (COA), other aid received, annual and aggregate loan limits, and SAP requirements.

    SOR Notice: Students enrolled less than full-time may have reduced eligibility under the Schedule of Reductions (SOR), which may affect Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans.

    Graduate PLUS Notice: Graduate PLUS amounts are estimates only. Final eligibility is based on COA, other aid received, remaining eligibility, federal requirements, and credit approval.

  • Loan Repayment Changes
    • The  will be discontinued for future borrowers.
    • A new  will replace the SAVE plan.
    • To view more information about current loan repayment plans, visit .

What Students Should Do Now

File Early

Complete the  as early as possible each year.

Check Enrollment

Consider how part-time enrollment may affect current and future loan eligibility.

Plan Borrowing

Review borrowing plans carefully, especially if relying on Parent PLUS or Graduate loans.

Stay Informed

Monitor your ³ÉÈËAVÊÓƵ email and the financial aid website for updates as federal guidance becomes final.

Frequently Asked Questions

The information above reflects current understanding of federal law and guidance. Final details may change once the U.S. Department of Education issues final regulations. Updates will be shared as more information becomes available.