Financial Aid

Pell Grant Changes

The One Big Beautiful Bill Act includes several changes that narrow eligibility for the Federal Pell Grant. Key updates are outlined below.

• Higher Income Threshold (SAI Limit): Students whose Student Aid Index (SAI) is equal to or greater than twice the maximum Pell Grant award (approximately $14,790 for the 2026-2027) will no longer qualify for Pell Grant funding, even if their family income is comparatively low.
• Students Receiving Full Scholarships: Students whose non-federal scholarships and grants fully cover their Cost of Attendance (such as full-ride scholarship recipients) are not eligible to receive a Pell Grant.
• Foreign Earned Income Must Be Counted: Families with foreign earned income must now include that income when determining Pell Grant eligibility. This may result in a high SAI and could reduce or eliminate eligibility for some students.

Because of these changes, some students who previously qualified for Pell Grants may no longer be eligible beginning in 2026-2027.

There is a lifetime limit of $257,500 for all federal student loan funding, excluding Parent PLUS loans.

Beginning with the 2026-2027 academic year, Direct Loan amounts will be disbursed in proportion to the percentage of full-time enrollment for the entire loan period (fall and spring semesters combined).

Annual loan limits will be calculated using the following formula:

(Total credit hours enrolled for the academic year/full-time credit hours for the academic year) *100

This change may also affect students who withdraw from courses after receiving an initial disbursement.

Example:

A dependent freshman student is enrolled full-time (12 credits per semester) but drops a 3-credit fall course:

• If the student is full-time in both fall and spring semesters, they could receive $5,500 per year ($2,750 per semester)

Fall Semester:

• Student begins the semester with 12 credits
• Drops to 9 credits after fall disbursement
• There would be no changes to the fall loan disbursement at that time

Spring Semester:

• Enrolls in 12 credits in the spring semester

Annual Credit Load

• Fall: 9 credits
• Spring: 12 credits
• Total Credits: 21 for the academic year

(21 / 24) * 100 = 87.5% full-time enrollment

87.5% * $5,500 = $4,812 annual loan limit

Spring eligibility is calculated as follows:

• Annual limit: $4,812
• Amount received in Fall $2,750
• Remaining eligibility for spring: $2,062

Parent PLUS Loans (available only to parents of dependent undergraduate students) will be limited to $20,000 per student per academic year. In addition, a lifetime Parent PLUS Loan limit of $65,000 per student will apply.

A legacy provision is available for students who received a PLUS Loan disbursement prior to July 1, 2026. These students may continue to received Parent PLUS loans under the current rules – up to the cost of Attendance minus other aid – for up to three additional academic years or until they complete their current degree program, whichever comes first.

To remain eligible for the legacy provision, a student must maintain continuous enrollment. Students who withdraw or stop out for a semester will lose eligibility for legacy consideration and will be subject to the new annual and lifetime Parent PLUS Loan limit.

Federal Direct Unsubsidized Loans for the graduate students will continue to have an annual borrowing limit of $20,500. The new lifetime borrowing limit for graduate students is now is $100,000. This lifetime limit would not include loans borrowed as an undergraduate student.

A legacy provision applies to graduate students who received a Direct Loan disbursement prior to July 1, 2026. These students may continue to borrow up to the current federal lifetime limit of $138,500 (which includes both undergraduate and graduate borrowing) for up to three additional academic years or until they complete their current graduate program, whichever comes first.

To maintain eligibility for the legacy provision, students must remain continuously enrolled. Students who withdraw or stop out for a semester will lose eligibility for legacy consideration and will be subject to the new lifetime limit of $100,000.

Beginning July 1, 2026, the Federal Graduate PLUS Loan program will be discontinued. After this date, graduate student who need additional funding beyond the annual $20,500 Direct Unsubsidized Loan limit will need to explore private education loan options.

There is a legacy provision for students who received a direct loan disbursement prior to July 1, 2026 to allow them to continue receiving the Graduate PLUS loan for up to three academic years or the completion of their current program, whichever comes first. The legacy provision requires continuous enrollment, so if a student withdraws or stops out for a semester, they will no longer be under the legacy provisions. The student will also lose access to the Graduate PLUS loan legacy provision if they change their graduate program.

Borrowers who receive new federal student loan disbursements on or after July 1, 2026 will have two repayment options available:

• A new Standard Repayment Plan
• A new income-driven repayment plan, called RAP (Repayment Assistance Plan)

Current borrowers who do not receive any new loan disbursements on or after July 1, 2026 will remain eligible for the current repayment options including:

• Standard Repayment
• Graduated Repayment
• Extended Repayment
• Income-Based Repayment (IBR)

These borrowers may also choose to opt into the new RAP income-driven plan if they prefer.

As students enter repayment, their loan servicer will provide the most accurate and up-to-date information about available repayment plans and individual eligibility.