US Department of Education Alters Pell Grant and Student Loan Rules

The U.S. Department of Education has updated Pell Grant and federal student loan policies for the 2026-2027 academic year, stemming from the "One Big Beautiful Bill" passed in July 2025. These changes introduce lifetime caps on undergraduate loans and require students to be enrolled at least half-time for Federal Direct Loan eligibility. Pell Grant awards will now be based on enrollment intensity, potentially impacting financial aid for many students, especially those who drop or fail courses.