Significant Federal Financial Aid Changes, Including New Loan Caps, Set for July 1, 2026

Major changes to federal student financial aid programs, stemming from the 'One Big Beautiful Bill Act,' will take effect on July 1, 2026. These include new annual borrowing caps for Parent PLUS Loans ($20,000 with a $65,000 lifetime limit) and for graduate students ($20,500 annually, $100,000 lifetime), with professional students having higher caps. The Grad PLUS program will be eliminated for new borrowers. Additionally, loan amounts will be reduced for students enrolled less than full-time, and the Student Aid Index (SAI) will impact Pell Grant eligibility for some.