OB3 Change is Coming

The One Big Beautiful Bill (OB3) includes significant changes to federal student loans, borrowing limits, and repayment options. Most OB3 changes are scheduled to take effect for the Fall 26 semester. Please visit the Federal Student Aid webpage for updates regarding OB3.

Important Changes to Student Loans:

• Part-time enrollment status

  Students enrolled less than full-time will have their federal loans prorated (adjusted). Students who plan to enroll part-time should review the changes to see how their aid will be impacted.

  • For example: An undergraduate student who is enrolled with 6 credits in Fall and 6 credits in Spring is enrolled 50% each term (half-time). Their loans will be prorated to 50% of their annual eligibility. If the student is eligible for $5,500 ($2,750 per term) at full-time for the two semesters combined, then their prorated amount will be reduced to $2,750 ($1,375 per term) to reflect their half-time enrollment.

  • Students who withdraw to part-time status after add/drop in the Fall 26 term will have their federal loans prorated for the Spring 27 term.

     

• Parent PLUS Loan Annual and Aggregate Limit Changes
  • Parents may borrow up to $20,000 per student, per year.

  • Parents may borrow up to $65,000 per student in lifetime limit for four years of undergraduate study which means that families who borrow $20,000 per year could reach the lifetime limit before a student completes four years of undergraduate study.

     

• Graduate Students Lifetime Limit Changes
  • Elimination of the Graduate PLUS program for students who haven't borrowed by July 1, 2026.
  • New lifetime aggregate loan limit: $100,000.