OBBBA Update

The OBBBA introduces several changes affecting undergraduate students and their families beginning July 1, 2026.

Pell Grants

Students whose cost of attendance is already fully covered by nonfederal grants will no longer be eligible for a Pell Grant. The Max Student Aid Index (SAI) is 14,790 to receive federal Pell.

Parent PLUS Loans

Parents who are new borrowers on or after July 1, 2026, will be subject to new limits: $20,000 per academic year and a $65,000 lifetime cap per dependent student. Parents who already have a Parent PLUS or Direct Loan on file for their student's current program before July 1, 2026, may qualify as a continuing/legacy borrower and retain the previous limits for up to 3 additional academic years or for the remainder of the student's program, whichever is shorter. Email the Office of Financial Aid to determine your borrower status.

Loan Repayment

The SAVE repayment plan has been eliminated and replaced with the new Repayment Assistance Plan (RAP), which sets payments at 1%–10% of discretionary income with a 30-year forgiveness period and minimum monthly payments. Students who borrow both before and after July 1, 2026, will be limited to the Standard or RAP plans. Students who do not borrow new loans after July 1, 2026, may remain on existing plans, including Standard, Graduated, Extended, or Income-Based Repayment (IBR), and may also opt into RAP.

Less Than Full-Time Enrollment

Students enrolled less than full-time (fewer than 12 credit hours) will have their maximum loan eligibility prorated based on the actual number of enrolled credit hours. See the Less Than Full-Time Loan Adjustments section below for details and examples.

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The OBBBA significantly restructures federal loan access for graduate and professional students beginning July 1, 2026.

Loan Limits

Graduate students will face new annual and lifetime borrowing caps: $20,500 per year and $100,000 in lifetime borrowing. Professional students in designated programs (including Medicine, Law, Dentistry, Pharmacy, and others) may borrow up to $50,000 per year, with a lifetime limit of $200,000. A $257,500 cap applies to all federal loans combined, including undergraduate borrowing.

Graduate PLUS Loans

Graduate PLUS loans will be eliminated for students beginning a new program on or after July 1, 2026. Current borrowers who were enrolled in the same program and received a Direct Loan disbursement before July 1, 2026 may qualify for a temporary exception, retaining Graduate PLUS access for up to three additional academic years or the remainder of their program, whichever is less, provided they have not withdrawn or ceased enrollment. Contact the Office of Financial Aid to determine your eligibility.

Loan Repayment

The same repayment changes that apply to undergraduates apply to graduate students: SAVE is eliminated, RAP replaces it, and the forgiveness period extends to 30 years. Public Service Loan Forgiveness (PSLF) is maintained, and medical and dental internships and residencies continue to count toward PSLF eligibility.

Less Than Full-Time Enrollment

Graduate students enrolled in fewer than 9 credit hours (the university's definition of full-time) will have their loan eligibility prorated based on the number of enrolled credit hours. See the Less Than Full-Time Loan Adjustments section below for details.

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Beginning with the 2026–2027 aid year, students not enrolled full-time for the full academic year will have their federal loan eligibility adjusted through a process called a Schedule of Reduction ( SOR ). Full-time enrollment is defined as 24 credit hours over fall and spring for undergraduates, and 18 credit hours for graduate and professional students. To receive loan funds in any given semester, students must be enrolled at least half-time — 6 credit hours for undergraduates, 4.5 for graduate students.

This adjustment applies to all Direct Loan borrowers, including Subsidized, Unsubsidized, and Graduate PLUS loans. Parent PLUS loans are not affected.

How the Schedule of Reduction Works

Your loan eligibility is calculated based on your actual enrolled credit hours relative to the full-time academic year definition. A few important scenarios to be aware of:

• If you are fully enrolled for the academic term (12 hrs Fall & 12 hrs Spring for Undergraduates and 9 hrs Fall & 9 hrs Spring for Graduate and Professional Students), no reduction is needed.
• If you know that you will not be enrolled full-time for the academic term (Fall or Spring), please notify the financial aid office to reduce your loan in advance.

The bottom line: Changes to your enrollment after loans have been disbursed can have serious consequences. Contact the Office of Financial Aid before dropping any course to understand how it may affect your aid.

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