One Big Beautiful Bill Act (OBBBA) Financial Aid FAQ's
Undergraduate Students
Yes. Beginning with the 2026–27 academic year, undergraduate students enrolled less than full-time will have reduced annual federal Direct Loan eligibility based on enrollment intensity. Students must still be enrolled at least half-time to qualify for federal student loans.
Federal Direct Loan limits will now be reduced based on the number of credits a student is enrolled in compared to full-time enrollment.
For undergraduate students:
• Full-time enrollment = 12 credits per semester
• Full academic year full-time enrollment = 24 credits
Example:
A student enrolled in 6 credits during the fall semester is enrolled at 25% of the
annual enrollment expectation (6 out of 24 credits). The student would only qualify
for 25% of the annual loan limit for that semester.
Students enrolled full-time (12 or more credits per semester) will still qualify for the standard annual federal Direct Loan limits.
Yes. OBBBA establishes a new lifetime aggregate federal student loan borrowing cap of $257,500 total. This includes Subsidized Loans, Unsubsidized Loans, and Graduate PLUS Loans. Parent PLUS Loans are excluded from this lifetime cap.
Yes. Beginning July 1, 2026, Parent PLUS Loans will have both annual and aggregate borrowing caps.
For dependent undergraduate students:
• Annual Parent PLUS Loan limit: $20,000 per student
• Aggregate Parent PLUS Loan limit: $65,000 per student
The limit applies per dependent student, regardless of how many parents borrow.
No. Parent PLUS Loans are excluded from the student lifetime aggregate borrowing limit.
Yes. Parents or students who borrowed a federal Direct Loan before July 1, 2026 may qualify to continue borrowing under previous Parent PLUS rules for up to three academic years or until the student completes the current academic program, whichever comes first.
To remain eligible, the student must stay enrolled in the same program at the same institution.
Graduate Students
Graduate PLUS Loans will be eliminated beginning July 1, 2026. Students borrowing federal loans for the first time after that date will no longer have access to the Graduate PLUS Loan program.
Graduate students will continue to have an annual Direct Unsubsidized Loan limit of $20,500. However, the aggregate graduate borrowing limit decreases to $100,000 for graduate students.
Yes. The lifetime aggregate federal student loan cap applies across undergraduate, graduate, and graduate plus loans.
Graduate federal loan eligibility will also be reduced based on enrollment intensity.
For graduate students:
• Full-time enrollment = 9 credits per semester
• Full academic year enrollment = 18 credits
Example:
A graduate student enrolled in 6 credits during fall is enrolled at 33.3% of annual
full-time enrollment (6 out of 18 credits). The student would qualify for approximately
33.3% of the annual loan limit for that semester.
Students may continue borrowing under previous federal loan rules for up to three academic years or the completion of their current academic program, whichever comes first.
To qualify:
1. The student must have borrowed a federal Direct Loan before July 1, 2026.
2. The student must remain continuously enrolled in the same program at the same institution.
Eligible students may still access higher previous aggregate loan limits and Graduate PLUS Loans.
Students who change degree programs or begin a new academic credential after July 1, 2026 lose eligibility for legacy borrowing provisions, become subject to new aggregate loan limits, and cannot receive Graduate PLUS Loans.