The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant reforms to federal student aid. While these changes do not affect the 2025-26 academic year, they will fundamentally change how students and parents finance education starting July 1, 2026. The following information will help you understand and plan for the upcoming changes.

Important disclaimer: Information below is based on current guidance and is subject to change. The Department of Education is expected to issue final regulations in late spring 2026.

Key Changes to Federal Student Loans

1. Phase-Out of Graduate PLUS Loans

The Graduate PLUS loan program will be eliminated for new borrowers starting after July 1, 2026. Graduate students who do not meet the legacy provision (see below) will need to rely on unsubsidized loans and/or private education loans to cover their remaining costs.

2. New Direct Unsubsidized Loan Limits

The law establishes new annual and lifetime (aggregate) limits based on your degree type. Legacy provisions apply (see below).

* The definitions of 鈥減rofessional鈥� vs. 鈥済raduate鈥� student are still unclear. Under current guidance, 亚洲色情 does not have any programs that are considered professional programs. This information will be updated in the event of a change communicated by the Department of Education.

3. Changes to Undergraduate Parent Loans (Parent PLUS)

Parent PLUS loans will remain available but will now be subject to annual and lifetime limits (shown below). These limits apply to PLUS loans borrowed by parents of dependent undergraduate students. Legacy provisions apply (see below)

• Annual Limit: $20,000 per student
• Lifetime Limit: $65,000 per student

4. Enrollment Proration

Beginning with the 26-27 academic year, federal law requires institutions to prorate annual loan amounts based on enrollment status. Students enrolled less than full time, will have their loan eligibility reduced proportionally. This rule applies to all students, including those who fall under legacy provisions.

Example: First-time dependent undergraduate student plans to enroll in 12 credits for both fall and spring. 24 credits is considered full time for the academic year (12 hours fall & 12 hours spring). The student is enrolled in 12 fall credits and intends to enroll for 12 credits in the spring. Initial loan calculation is as follows:

• Step 1: Annual loan limit (maximum eligibility) = $5,500
• Step 2: (24/24) x 100 = 100% for the year
• Step 3: 2 terms = 50% academic year loan limit per term ($2,750 fall/ $2,750 spring)

The student drops to 6 credits for the fall semester after disbursement has been made. Loan proration calculations must occur for the spring disbursement to account for the dropped fall credits and the reduction applies to the spring term. The student intends to enroll in 12 credits for second semester. The proration calculation is as follows:

• Step 1: Annual loan limit (maximum eligibility) = $5,500
• Step 2: (18 credits enrolled/24 credits for full time) x 100 = 75% for the year
• Step 3: maximum annual loan amount $5,500 x 75% = $4,125 for the year
• Step 4: Spring loan amount is calculated as follows:
  • Prorated annual loan amount $4,125 鈥� $2,750 received for fall
  • Fall loan amount remains at $2,750
  • Spring loan amount is $1,375

The Legacy Provision

If you are enrolled and borrowing federal loan funds prior to July 1, 2026, you may be eligible to continue under the 鈥渙ld鈥� rules through a legacy provision.

To qualify for the Legacy Provision, you must meet ALL three requirements:

1. Enrolled: You must be admitted, enrolled, and attending classes in your current program at 亚洲色情 prior to July 1, 2026.
2. Borrowed: You must have received a Direct Loan (subsidized, unsubsidized or PLUS) at 亚洲色情 for your current program prior to July 1, 2026.
3. Timeline: You may remain under this provision for the lesser of three years or the remaining time to complete your current program.

Loss of Legacy Provision

Students will lose access to the legacy provisions if any of the following occur on or after July 1, 2026:

• Student changes their program of study (defined as follows):
  • Graduate student 鈥� any change in program
  • Undergraduate student 鈥� completion of undergraduate degree*

*undergraduate students will not lose legacy provisions by changing their major, before degree completion

• Official Student withdrawal 鈥� student withdraws from all courses within a term after beginning attendance.
• Unofficial Student withdrawal 鈥� student completes a term without any passing grades, and it is determined to be a result of non-attendance.
• Student takes a Leave of Absence.
• Lack of Continuous Enrollment 鈥� student takes a semester off from or steps out of their program (missing a fall/spring term for on campus programs or fall/spring/summer for distance education programs).

How to Prepare

• Review Your History: Log in to to check your total lifetime borrowing.
• Plan Your Program: Avoid program changes or 鈥渁cademic pauses鈥� after July 1, 2026, as these may trigger a loss of legacy status. Specifically, maintain continuous enrollment. Withdrawing or taking a leave of absence after July 1, 2026, may break your legacy status and force you into the new, lower loan limits upon return.
• Explore Scholarship Options: Check out 亚洲色情鈥檚 scholarship options to see what free internal and external scholarship opportunities might be available to you.
• Explore Private Options: You can research private credit-based loans via our .