Changes to Financial Aid Applications beginning 2026-27 Academic Year

The One Big Beautiful Bill (OB3/H.R. 1) includes changes to federal student financial aid that take effect July 1, 2026.

These changes affect:

• Federal student loans 
• Borrowing limits 
• Loan eligibility 
• Repayment options 
• FAFSA identity verification

Some provisions are still being implemented by the U.S. Department of Education. This page will be updated as additional guidance becomes available.

Loan Eligibility Based on Program Length

Beginning July 1, 2026, students will no longer be able to borrow federal student loans indefinitely while enrolled.
Instead, your loan eligibility will generally be based on the published length of your academic program.

For example:

• A two-year degree program provides approximately two years of federal loan eligibility. 
• If it takes longer than two years to complete your program, you may use all of your loan eligibility before graduating. 

NOTE: This change is especially important for students who attend part-time.

Part-Time Students May Receive Smaller Loans

Beginning July 1, 2026, students enrolled less than full-time (fewer than 12 units) who are new federal loan borrowers will receive loan amounts based on their enrollment level.

For example:

• Full-time students may receive the full annual loan amount. 
• Half-time students may receive approximately half of the annual loan amount. 

NOTE: This is similar to how Pell Grant awards are already determined.

Undergraduate Student Loans

For most undergraduate students, annual and lifetime federal loan limits remain the same.

• Before July 1, 2026: Annual loan limits range from $5,500 to $7,500, depending on grade level. Little to No change
• Beginning July 1, 2026: Lifetime limit for dependent undergraduate students is $31,000. Little to No change.

Graduate and Professional Student Loan Changes

Students planning to attend graduate or professional school should be aware of significant borrowing changes.

Graduate Students:

• Graduate PLUS Loans will no longer be available.
• Annual Direct Unsubsidized Loan limit remains $20,500.
• New lifetime borrowing limit of $100,000. 

Professional Programs:

Examples include: medical, law, pharmacy, and similar professional degrees.

• Graduate PLUS Loans eliminated.
• Annual borrowing limit increases to $50,000.
• Lifetime borrowing limit becomes $200,000.

New Lifetime Federal Loan Limit

Beginning July 1, 2026, there will be a new combined lifetime federal student loan limit.

• Before July 1, 2026: No overall federal lifetime borrowing limit across all loan programs.
• Beginning July 1, 2026: Combined lifetime limit of $257,500 for undergraduate, graduate, and professional federal student loans.    

Beginning April 26, 2026, the U.S. Department of Education introduced additional identity verification to help protect students from identity theft and financial aid fraud.

Most students will not be selected.

If your FAFSA is selected:

• You will receive instructions from Federal Student Aid (FSA).
• You'll complete a brief live identity verification using a phone or tablet with a camera.
• You'll need a valid government-issued photo ID. 

Being selected does not mean there is a problem with your FAFSA. Selection is random and designed to improve security.

If You're Selected

Respond as soon as possible. Delays in completing identity verification may delay the processing of your financial aid.

If you do not have access to a phone or tablet with a camera, contact the Financial Aid Office for assistance.

Protection for Current Student Borrowers (Legacy Provision)

Students who received at least one federal student loan before July 1, 2026 may continue under the previous loan rules.

This protection generally lasts until:

•    You complete your current program, OR 
•    Three years after July 1, 2026, whichever comes first.

You may lose this protection if you:

•    Withdraw from your program, 
•    Transfer to a different program, OR 
•    Remain enrolled beyond your program's expected length.