OB3 Change is Coming
| The One Big Beautiful Bill Act (OBBBA or OB3) law includes significant changes to federal student loans, borrowing limits, and repayment options. Many of these provisions require additional federal regulations before they can be fully implemented. The U.S. Department of Education is currently completing that process through negotiated rulemaking. Most OB3 financial aid changes are scheduled to take effect Fall Semester 2026, unless otherwise noted. Some provisions have different effective dates, which will be clearly identified throughout this page. | Because the federal rulemaking process is ongoing, details may continue to evolve. This page will be updated as new information becomes available to ensure our campus community has the most current and accurate guidance. |
Loan proration (adjustment) for less than full-time ( 12 credit hours or more) enrollment per semester
Students enrolled less than full-time (full-time = 12 credit hours) will have their federal loans prorated to match their enrollment. Students who plan to enroll part-time should review the information below to understand how these changes may affect their federal loan options.
For example: A student who is enrolled with 6 credits in Fall and 6 credits in Spring is enrolled 50% each term. Their loans will be prorated to 50% of their annual eligibility. If the student is eligible for $5,500 ($2,750 per term) at full-time for the two semesters combined, then their prorated amount will be reduced to $2,750 ($1,375 per term) to reflect their half-time enrollment.
This change could have an effect on students withdrawing from classes after aid disbursed as aid may have to be adjusted for future semesters.
Parent PLUS Loan Annual and Aggregate Limit Changes
Parent PLUS loans will continue to be available, but new borrowing limits will apply.
- Parents may borrow up to $20,000 per student, per year.
- Parents may borrow up to a total of $65,000 per student in total.
- Families who borrow $20,000 per year could reach the $65,000 lifetime limit before a student completes four years of undergraduate study.
Lifetime Loan Limits
There have been no changes for undergraduate loan limits. There are changes to combined graduate and undergraduate loan limits. For more information Click here
Students fully covered by non-federal grants and scholarships
Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
Foreign Income Inclusion
Foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA.
The One Big Beautiful Bill Act (OB3) includes significant updates to federal student loan repayment options. Beginning July 1, 2026 repayment options for new borrowers will be simplified to two primary plans. Borrowers should carefully review the information below to understand how these updates may impact current repayment plans and future repayment options. Specific repayment questions should be directed to your federal loan servicer.
Student Borrower Scenarios
Visit the Federal Student Aid webpage for updates regarding OB3.