Legislative Updates
One Big Beautiful Bill Act
Signed into law: July 4, 2025
The One Big Beautiful Bill Act (OBBBA) is the budget reconciliation package that was approved by congress to ensure continued funding for many federal expenditures. While it includes a broad range of topics and policy changes, the college is focusing specifically on the aspects that impact federal financial aid for higher education. Many of the changes create new questions for how they will be implemented and how they may impact existing policies and regulations.
While some provisions are clear, many others require further clarification from the U.S. Department of Education.
We understand that students, families, and staff have questions—and so do we.
As the college receives more guidance and official updates, we will continue to revise and expand this webpage to reflect the most accurate and actionable information available.
This page was last updated April 28, 2026
Big Changes to Student Loans
Federal Direct Loans for Undergraduate Borrowers
Loan Proration
Students enrolled less than full time will have their student loans prorated (reduced) to match their actual enrollment levels.
- Full-time academic year definition:
- Students must complete 30 credit hours over the course of the fall and spring terms.
- Students who begin the semester enrolled full-time and withdraw from or do not begin all hours may affect loan eligibility in the current or following semester.
- Half-time enrollment may result in up to a 50% reduction in the maximum federal loan amount you can borrow.
- Students must be enrolled for at least a half-time load of financial aid-eligible classes to receive a federal direct loan in any given semester.
The information above reflects the most current guidance available and is subject to change pending final regulatory text from the Department of Education, expected June 1, 2026.
Federal Direct Loans for Parent Borrowers
Parent PLUS Loan Limits
- $20,000 per year (per student)
- $65,000 lifetime (per student)
Repayment Plan Changes
Students who borrow a new federal Direct Loan on or after July 1, 2026, will be eligible for only two repayment plans:
- Tiered Standard Repayment
- Fixed monthly payments
- Repayment term length ranges from 10 to 25 years, based on the amount borrowed
- Repayment Assistance Plan (RAP)
- Monthly payments based on income
- Loan forgiveness after 30 years of repayment
- Is a qualifying plan for Public Service Loan Forgiveness
- All federal loans must be repaid using the same repayment plan.
Students with older loans (borrowed before July 1, 2026) who take out new loans on or after that date will have to repay their loans under one of the two repayment options described above.
Students who do not borrow a new federal Direct Loan on or after July 1, 2026, may continue to access current repayment options, including:
- Standard (10-year), Graduated, or Extended Repayment
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)*
- Income-Contingent Repayment (ICR)*
*The law sunsets the PAYE and ICR plans effective July 1, 2028. Borrowers who enroll in PAYE or ICR must switch to any of the other eligible plans listed before July 1, 2028, or they will be automatically moved into RAP.
They may also access the new Repayment Assistance Plan (RAP) once it becomes available in July 2026.
Federal Pell Grants
Pell Grants & Full Scholarships
- Students whose Cost of Attendance (COA) is fully covered by scholarships or other aid will no longer be eligible for a Federal Pell Grant. This ends the previous allowance for Pell Grants to exceed COA when combined with other aid.
- Example: A Pell-eligible student with an institutional or private scholarship covering the full Cost of Attendance will no longer receive both the scholarship and the Pell Grant.
- Cost of Attendance (COA) differs for instate, out of state and nursing students.
Pell Grants & High Student Aid Index (SAI)
- Students with an SAI greater than twice the maximum Pell Grant amount will be ineligible for any Pell Grant.
- Example: If the max Pell Grant is $7,395, students with an SAI over $14,790 will not qualify.
Foreign Income Reporting
Foreign income must now be included in the Adjusted Gross Income (AGI) for Pell Grant eligibility on the FAFSA.
Family Farms and Family-Owned Small Businesses
Family farms and family-owned small business will no longer be counted as assets (reverting to rules before FAFSA Simplification).
- Family Farm – Farms on which the family resides
- Small Business – 100 or fewer full-time (or full-time equivalent) employees
- Family-owned commercial fisheries are now also exempt from asset reporting.
What You Should Do Now
- Consider funding conversations before applying or enrolling.
- Talk with an enrollment services or financial aid counselor before dropping a class.
- Be sure to begin all classes in which you are enrolled.
- Don’t forget online class start dates.
- Budget more carefully.
Detailed Information
Should you wish to look more in-depth into the changes to financial aid due to the One Big Beautiful Bill Act, we recommend the following resources: