Federal Updates
Financial aid impact under federal legislation: One Big Beautiful Bill Act
This page is intended for informational purposes only and reflects our current understanding of the U.S. Department of Education’s proposed implementation of the One Big Beautiful Bill Act. All information is subject to change upon the release of final regulatory guidance.
The One Big Beautiful Bill Act (OB3 or OBBBA) was enacted into law on July 4, 2025, through the federal budget reconciliation process. This legislation contains major changes that significantly reshape federal student aid across the country.
What changed under the One Big Beautiful Bill Act?
Some of the key changes include the following:
- Graduate PLUS Loan Program eliminated
- Parent PLUS annual and loan limits
- Graduate/Professional annual and aggregate loan limits
- Federal Loan Program lifetime limits
- Loan Reduction for students below full-time
- Student Loan repayment
- Cost of Attendance impacts on the Federal Pell Grant
U.S. Department of Education anticipated timeline
Early 2026
Notice of Proposed Rulemaking (NPRM) published.
First official look at the proposed regulations.
Early 2026 (after NPRM published)
Public comment period.
Begins immediately after the NPRM is published: 30 or 60 day period.
Spring 2026
Final Rules published.
Final rules are published, incorporating any changes made in response to feedback from the public comment period.
July 1, 2026
Rules go into effect.
Institutions are now required to comply with the finalized regulations.
Frequently asked questions
Learn more about common questions regarding the One Beautiful Bill Act.
Effective July 1, 2026, Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
No, effective July 1, 2026, Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
No, students who meet the legacy provisions may not forfeit their legacy borrower status and must continue to borrow under the current loan regulations prior to OB3.
Federal Unsubsidized Loan: For those students who can complete the FAFSA, students will be able to receive a Federal Unsubsidized Loan to help cover the costs of their education.
Private Educational Loans: These are offered by private lenders, banks, and credit unions. The terms can vary depending on the lender and normally require a credit check. It is important to compare interest rates, repayment terms, and borrower protection policies offered by each lender.
Federal full-time status is 12 credits per semester for undergraduate students and 9 credits per semester for graduate students.