Federal Student Aid and Pell Grant Reforms to Begin July 1

Significant federal student aid reforms, enacted by the 'One Big Beautiful Bill Act' in 2025, are scheduled to commence on July 1, 2026. These changes will reduce loan limits for graduate and Parent PLUS loans and eliminate the Grad PLUS program for new applicants. Conversely, Pell Grant eligibility will broaden to include specific short-term, career-focused programs, while some groups advocate for stronger accountability in federally funded programs.