The One Big Beautiful Bill Act (OBBBA) & Financial Aid

 

Beginning July 1, 2026 federal financial aid regulations will change under the One Big Beautiful Bill Act (OBBBA). Learn more on the Federal Student Aid website here: Big Updates to Federal Student Aid.

These updates affect:

  • Federal Pell Grant eligibility
  • Federal student loans
  • Parent PLUS Loans

Federal Pell Grant & Cost of Attendance Changes

Beginning with the 2026–2027 award year:

Students whose institutional, state or private scholarships and grants fully cover their Cost of Attendance will no longer be eligible to receive a Federal Pell Grant.

Students with a Student Aid Index (SAI) equal to or greater than twice the maximum Pell Grant award may not qualify for Pell eligibility.

Federal Student Loan Changes

Loan Proration Based on Enrollment:

Prior to July 1, 2026 if you are enrolled in at least 6 credits (half-time) you can receive up to the full amount of the annual loan limit.

Beginning July 1, 2026 if you accept federal student loans, the amount you can receive depends on your enrollment level. If you are enrolled in fewer than 12 credit hours (less than full-time), your loan may be reduced (prorated). For example, if you enroll in 6 credits (half-time) you can receive up to 50% and if you enroll in 9 credits you can receive up to 75% of the annual loan limit.

Parent PLUS Loan Changes

New Loan Limits:

Prior to July 1,2026 parents can borrow up to the full Cost of Attendance (minus other aid).

Beginning July 1, 2026 there will be an Annual Limit of $20,000 and Lifetime (Aggregate) Limit of $65,000 per dependent student per academic year for Parent PLUS Loans.

Parent PLUS Loan Repayment Alert:

There have been recent changes to federal student loan programs under the One Big Beautiful Bill that significantly alter repayment options for new and existing Parent PLUS loans. If you already have Parent Plus loans and would like to consolidate these loans, you must do so before June 30, 2026. To learn more about the changes, please visit the State of Michigan's Parent PLUS Loan Alert page.

Planning for the Future

As you plan for your future financial aid, here are a few tips:

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