One Big Beautiful Bill Act (OB3) Information

Under the new rules, students will not qualify for a Pell Grant if their combined financial aid package equals or exceeds the total estimated Cost of Attendance (COA). This primarily impacts students with large amounts of non-federal grant and scholarship aid.

Students will not qualify for a Pell Grant if their Student Aid Index (SAI) is equal to or greater than twice the maximum Pell Grant award.

• The current Pell Grant maximum is $7,395. The SAI threshold would be $14,790.

Beginning July 1, 2026, Graduate PLUS loans will be discontinued for new borrowers. 

• Students who received a Graduate PLUS loan prior to July 1, 2026, while enrolled in a qualifying program may continue to borrow under the previous loan limits for a maximum of three academic years or until they have met their estimated program completion date, whichever occurs first. If the student has an enrollment change or changes programs, it may affect the your eligibility to continue qualifying under legacy (grandfathered) provisions.

• An approved Graduate PLUS Application from studentaid.gov does not mean that a student is eligible to receive the loan. The Office of Student Financial Aid and Scholarships will make the final determination. 

Starting July 1, 2026, annual borrowing limits will be adjusted based on a student’s enrollment at the time of disbursement AND again at the end of the term based on the hours completed. 

• Students attending less than full-time will only be able to borrow a portion of the annual loan amount;

• Students who fail to complete the same number of credits that was used to calculate their eligibility may have their remaining annual eligibility adjusted;

• Annual eligibility is calculated from fall through the next summer term; and

• Students must still be enrolled in at least half-time status to qualify.

• OB3 makes no changes to undergraduate student borrowing limits.
• Dependent students can borrow up to $31,000 while independent students can borrow up to $57,500.

• $20,500 annual (fall, spring, and summer) limit.
• $100,000 aggregate limit at the graduate level (does not include amounts borrowed as an undergraduate).

• $50,000 annual (fall, spring, and summer) limit.
• $200,000 aggregate limit at the professional level.
• Cannot borrow more than $257,500 regardless of level or amounts repaid, forgiven, and discharged.

Lifetime Aggregate Federal Student Loan Limits

• There is a $257,500 lifetime borrowing limit on all federal student loans, total. Amounts repaid, forgiven, and discharged still count toward this lifetime borrowing limit. 

Cost of Attendance

• Students cannot borrow more than their estimated Cost of Attendance (COA). 

Parent PLUS loans will be limited to $20,000 per year with a $65,000 aggregate limit. 

• The limits are per dependent student, meaning parents may borrow up to the maximum allowed amount for each eligible student they support. The number of parent borrowers does not increase the borrowing limits, as the limits are tied to the student rather than the individual borrower. For example, if a student has two parents who wish to borrow on their behalf, the combined total may not exceed $20,000 per year or $65,000 in total.