Key changes to Student Aid from the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA) was passed by Congress and signed into law on July 4, 2025. The legislation includes significant changes to federal student aid programs affecting undergraduate, graduate, and professional students.
Most changes are scheduled to take effect July 1, 2026, for the 2026-2027 academic year. Student Financial Aid is awaiting final rules and guidance from the Department of Education and will continue to update this page as more information becomes available.
Undergraduate Students
Federal Pell Grant
Students are not eligible for a Pell Grant if their Student Aid Index (SAI) exceeds twice the maximum Pell Grant Award ($7,395 for the 2026-2027 academic year).
Federal Direct Loans
There are no changes to annual or aggregate federal loan borrowing limits for undergraduate students.
Students enrolled less-than-full-time (12 hours undergraduate, 8 hours graduate) will have their subsidized and unsubsidized loans prorated based on annual credit hours.
Parent PLUS Loan
New Parent PLUS borrowers will be subject to the following limits:
Annual limit: $20,000 per dependent student
Lifetime limit: $65,000 for each dependent student.
These limits apply per student, regardless of the number of parents borrowing. For example, two parents borrowing for the same student are still capped at $20,000 total for the academic year.
Parent PLUS loan eligibility will be prorated if the student is enrolled less than full-time, based on the student’s enrollment level.
Legacy provision: Parent PLUS borrowers who have borrowed for a student prior to July 1, 2026, can continue to borrow up to the student’s COA, minus other aid, for up to three academic years or until the student completes their degree, whichever occurs first.
Students whose parents have reached the $65,000 lifetime limit are not eligible to borrow additional funds under independent undergraduate student limits.
Graduate/Professional Students
Federal Direct Unsubsidized Loan Limits
Graduate Students
Annual limit: $20,500 (no change)
Aggregate limit: $100,000
(Undergraduate loans are not included in this limit).
Professional Students
Annual limit: $50,000
Aggregate limit: $200,000
(Undergraduate loans are not included; graduate-level loans are included).
Lifetime Federal Loan Limit
A combined lifetime federal loan limit of $257,500 applies across all levels of study, including undergraduate, graduate, and professional loans.
Federal Loan Proration for Less-Than-Full-Time Enrollment
Federal student loans for graduate and professional students will be prorated if enrolled less-than-full-time.
Federal Graduate PLUS Loan Changes
The Graduate PLUS Loan program will be eliminated for new borrowers beginning July 1, 2026.
Legacy provision: Students who borrowed a Graduate PLUS loan prior to July 1, 2026, may continue borrowing under current limits for up to three academic years or until program completion, whichever occurs first.
Repayment
Changes will apply to both new and continuing borrowers, including:
A new tiered Standard Repayment Plan.
A new income-driven Repayment Assistance Plan (RAP).
Existing income-contingent repayment plans will sunset in 2028.
Parent PLUS & consolidation loan rules
All new Parent PLUS loans must use the Standard Repayment Plan and are ineligible for Repayment Assistance Plan.
Consolidation loans may use Standard Repayment Plan or Repayment Assistance Plan.
Additional Information
Student Financial Aid will continue to post updates to this page as new federal guidance becomes available. You can also monitor announcements from the U.S. Department of Education at
studentaid.gov.
Contact Us
For assistance determining how these changes could impact you, undergraduate and graduate students should contact Buckeye Link:
Hours: Monday through Thursday, 9 a.m. to 5 p.m.,
Friday 9 a.m. to 4 p.m.
Phone: 614-292-0300
Regional campus students and professional students can visit the
Contact Us page to find their financial aid representative.