One Big Beautiful Bill Act (OBBBA) Financial Aid FAQ

The new law does not change the annual or aggregate loan limits for undergraduate students, although undergraduate loans will now count towards the new lifetime limit. Additionally, new rules apply for Parent PLUS loans and loan prorations now are now in effect.

- Annual Loan Limit: $5,500-$12,500 based on year in school and dependency status
- Undergraduate Loan Limit: $31,000-$57,500 based on dependency status
- Lifetime loan limit: $257,500 includes student borrowing for undergraduate, graduate, and professional study without regard to any amounts repaid, forgiven, or otherwise discharged.

Similar to the way the Pell grant gets prorated, the new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year. Your eligibility will be determined, and adjusted, based on the number of credits for which you enroll. This means that in order to receive the full loan amount for the year, full-time (12 credit hours) enrollment is required per term.

Beginning July 1, 2026, Parent PLUS borrowing will be capped at $20,000 per year per student, with a $65,000 lifetime cap per student. The lifetime cap applies per student across all parents combined. Families who rely heavily on Parent PLUS loans should begin planning ahead for these limits.

If you already have Parent PLUS Loans, you may be eligible for grandfathering under the old, uncapped rules.

The Federal Pell Grant remains available for eligible students. While the legislation focuses primarily on federal loan changes, Pell eligibility will continue to depend on FAFSA results and enrollment status.

Starting in the 2026–27 academic year, students will not be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year (for the 2026-2027 year, that threshold is $14,790). Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on (APP-25-23) 2026–27 FAFSA Form and Pell Grant Eligibility Updates.

Starting in the 2026–27 academic year, new federal loan limits will apply to graduate and professional students:

• Graduate students will continue to be limited to $20,500 per year in unsubsidized loans.
• The lifetime cap for new graduate-level borrowers will be $100,000, not including any undergraduate loans.

Students who begin enrollment after July 1, 2026 will have to consider alternative options such as private student loans, payment plan, scholarships, and external service agreements. Students should contact their financial aid representative if guidance is needed. A short list of private loan options is also available on our website.

If you received a Grad PLUS loan before July 1, 2026, for a program in which you remain enrolled, you will: 

• Retain eligibility under existing terms. 

• Be allowed to continue borrowing Grad PLUS loans for 3 additional years or until you stop attending, whichever comes first.

Starting July 1, 2026, new federal loan caps will apply to new borrowers:

 • Graduate Students: o Annual cap: $20,500 o Lifetime cap: $100,000 

• Lifetime federal loan cap: $257,500 (includes previous Grad PLUS Loan)

You can check your loan totals and history by logging on to your www.studentaid.gov dashboard. It is generally good practice to check on it at the end of each term.

The new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year. Your eligibility will be determined, and adjusted, based on the number of credits for which you enroll. This means that in order to receive the full loan amount for the year, full-time (8 credit hours) enrollment is required per term.

The Graduate PLUS loan program will be eliminated for new borrowers beginning July 1, 2026. New federal borrowing caps will apply instead. Professional degree programs will be limited to 50,000 dollars per year with a 200,000 dollar lifetime cap. Students planning to enroll in the Doctor of Osteopathic Medicine program at BHSU are encouraged to schedule a financial planning conversation early.

If you received a Grad PLUS loan before July 1, 2026, for a program in which you remain enrolled, you will: 

• Retain eligibility under existing terms. 

• Be allowed to continue borrowing Grad PLUS loans for 3 additional years or until you stop attending, whichever comes first.

Starting July 1, 2026, new federal loan caps will apply to new borrowers:

 • Professional Students: o Annual cap: $50,000 o Lifetime cap: $200,000 

• Lifetime federal loan cap: $257,500 (includes previous Grad PLUS Loan)

Yes. The $257,500 lifetime federal loan cap includes all federal student loan borrowing, which encompasses both undergraduate ($57,500 maximum) and graduate/professional debt ($200,000 maximum).

You can check your loan totals and history by logging on to your www.studentaid.gov dashboard. It is generally good practice to check on it at the end of each term.

The new law requires annual loan amounts (unsubsidized and Grad PLUS, if applicable) to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year. Your eligibility will be determined, and adjusted, based on the number of credits for which you enroll. This means that in order to receive the full loan amount for the year, full-time (9 credit hours) enrollment is required per term.