Federal Student Financial Aid Undergoes Significant Changes Starting July 2026

Substantial revisions to federal student financial aid are set to take effect on July 1, 2026, as mandated by the One Big Beautiful Bill Act. These changes include new annual and lifetime caps on federal loans for graduate, professional, and Parent PLUS borrowers. Additionally, Pell Grant eligibility will be tightened, impacting students whose Student Aid Index exceeds a certain threshold or whose costs are already covered by other non-federal aid.