Significant Federal Financial Aid Changes Take Effect for 2026-2027 Academic Year

The "One Big Beautiful Bill Act" (OBBBA), passed by Congress in July 2025, has led to significant changes in federal student aid programs, effective July 1, 2026, for the 2026-2027 academic year. Key changes include new Parent PLUS loan borrowing limits, with an annual limit of $20,000 per dependent student and a lifetime limit of $65,000. Additionally, loan amounts will be prorated for students not enrolled full-time, and students are no longer eligible for Pell Grants if non-federal grants or scholarships equal or exceed their Cost of Attendance.