One Big Beautiful Bill Act (OBBBA)
On July 4, 2025, the President signed the final version of the One Big Beautiful Bill Act (OBBBA) (H.R. 1) which included some substantial changes to federal student aid. We’re currently reviewing what this legislation means and are still waiting on additional guidance from the U.S. Department of Education in several areas. While it’s too soon to know all the impacts, the University is focused on how these changes could affect students— especially when it comes to new limits on graduate and parent borrowing. Most of the financial aid changes are expected to take effect starting July 1, 2026, unless noted otherwise. This information is subject to change as we receive additional information and guidance from the Department of Education.
Who Is Affected by Federal Student Loan Changes?
These updates mainly affect students and families who will borrow federal loans on or after July 1, 2026, including:
- Students starting a new undergraduate or graduate program in 2026 or later,
- Students enrolled part-time and borrow federal loans,
- Families using Parent PLUS Loans, and
- Graduate students who previously relied on Graduate PLUS Loans.
Some enrolled may qualify for legacy provisions, allowing certain borrowers to continue under previous federal student aid rules for a limited period of time. Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.
What Is Not Changing?
Some core federal aid programs will remain in place.
- Students must still complete the FAFSA each year to be considered for federal, state, and institutional financial aid.
- Federal Direct Loans will still be available to eligible students.
- The Federal Pell Grant is not being eliminated, but Pell Grant eligibility rules are changing.
Undergraduate Students
| Policy Area | Updates |
| Federal Pell Grant Eligibility | Ineligible to receive Pell if your cost of attendance is already covered by other non-federal grants and/or scholarships. Cost of attendance includes tuition, fees, housing, food, books, course materials, supplies, & equipment, transportation, and miscellaneous living expenses. |
| Parent PLUS Loan Limits* | $20,000 academic year/$65K lifetime per dependent student |
| Student Loan Proration | Borrowers enrolled in less than full-time (12 hours per semester) will only be able to borrow a prorated maximum loan offer based on enrollment hours. The hours must be counting toward the student's degree program/major to be used in the calculation, hours toward a minor will not be used. This calculation is performed based on student's enrollment for the academic year, meaning if a student withdrawals from courses in the fall semester, it could impact their loan eligibility for spring semester. |
Parent PLUS Loan Limits
Beginning July 1, 2026, new limits will apply to Federal Parent PLUS Loans for undergraduate students.
- Annual limit: Up to $20,000 per dependent student per award year (combined total if both parents borrow).
- Aggregate (lifetime) limit: Up to $65,000 per dependent student over time.
Legacy Provision for Parent PLUS Loans
Parents who borrowed Parent PLUS Loans before July 1, 2026, may be able to continue borrowing under the current rules for up to three (3) additional academic years or until the student completes their current credential/degree, whichever occurs first. Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.
- An academic year includes all enrollment terms within a school year: Fall, Spring, and Summer.
- For example, the 2026-2027 academic year consists of Fall 2026, Spring 2027, and Summer 2027.
What This Means
Families who rely on Parent PLUS Loans should plan ahead, since total Parent PLUS borrowing may be lower for students starting college in 2026 or later.
Pell Grant Eligibility Changes
Beginning July 1, 2026, eligibility rules for the Federal Pell Grant will change.
- Students whose Student Aid Index (SAI) is greater than twice the maximum Pell Grant award amount will not be eligible for a Federal Pell Grant.
- The Pell Grant and Federal Work-Study are prorated based on enrollment.
What This Means
Some students who previously qualified for a Pell Grant may no longer qualify under the updated federal guidelines.
*If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent may be able to borrow under the old loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
Graduate/Professional Students
| Policy Area | Updates |
| Student Loan Limits | $20,500 academic year/$100K lifetime for graduates $50,000 academic year/$200K lifetime for professional students* |
| Student Loan Proration | Borrowers enrolled in less than full-time will be offered a prorated maximum unsubsidized loan based on enrollment. The hours must be counting toward the student's degree program/major to be used in the calculation. This calculation is performed based on student's enrollment for the academic year, meaning if a student withdrawals from courses in the fall semester, it could impact their loan eligibility for spring semester. |
| Graduate PLUS Loans | Eliminated if you begin your academic program on or after July 1, 2026** |
| Borrowing Cap | $257,000 borrowing cap on all federal loans (Excludes Parent Plus loans, includes undergraduate federal loans) |
Graduate PLUS Loan Availability
Beginning July 1, 2026, the Graduate PLUS Loan will be eliminated for new borrowers.
- Graduate students who begin a new graduate program on or after July 1, 2026, will not have Graduate PLUS Loans available, even if they borrowed Graduate PLUS Loans in the past.
What This Means
Graduate students starting a new program in Fall 2026 or later should plan for other funding options, such as federal direct unsubsidized loans, scholarships, or private loans.
There is a legacy provision for continuing graduate students. Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.
- Graduate students who borrowed a Graduate PLUS Loan before July 1, 2026, and are continuing in the same graduate program may continue borrowing Graduate PLUS Loans for up to three (3) additional academic years after July 1, 2026, or until completion of their current program, whichever occurs first.
*Among the degrees offered at UWG, the bill currently defines professional students as those pursuing a degree in Pharmacy (PharmD), Veterinary Medicine (DVM), Law (JD), Medicine (MD), and Clinical Psychology (PhD).
** Current graduate and professional students can continue under the existing loan limits and may keep using Graduate PLUS loans—but only for a limited time. This eligibility lasts until the earlier of: (1) the end of their current academic program, or (2) three academic years. To determine how much eligibility a student has left, we must take the total length of their program and subtract the time they’ve already been enrolled. A “current borrower” is a student who borrowed at least one Graduate PLUS or Direct Unsubsidized Loan before July 1, 2026, and who stays in the same academic program after that date.
2026-27 & Beyond Graduate/Professional Student Loan Borrowing Limits
Expected time to credential is, from July 1, 2026, the expected time for a student to complete a program that is equal to or the lesser of:
- Three academic years, as defined in 34 CFR 668.3; or
- The period determined by calculating the difference
- the program length of student in which is enrolled; and
- the period of such program of study that such individual has completed as of the date of determination
All information is tentative pending issuance of final regulatory text by the Department of Education. UWG will update this page as updates are available.