One big beautiful bill Act (OBBBA): 2026-27 Changes to federal financial aid
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, resulting in changes to federal student aid programs. Below is a summary of the changes and are subject to change. To view additional information and updates regarding the OBBBA, visit:
If you have questions about these changes or your financial aid, please contact the Financial Aid Office at PH: 479-968-0399 or EMAIL: fa.help@atu.edu.
Graduate PLUS Loan Program
The Federal Direct Graduate PLUS Loan program will be discontinued beginning with the 2026鈥�2027 academic year. New Graduate PLUS Loans will no longer be available.
A limited grandfather (legacy) provision may allow certain borrowers who previously received Federal Direct Loans to borrow a Grad PLUS loan under specific conditions. To qualify, a student must have previously received a federal Direct Loan (such as a Direct Subsidized, Direct Unsubsidized, or Graduate PLUS Loan, but excluding Federal Parent Plus) for the same program of study prior to the 2026鈥�2027 aid year and generally must maintain continuous enrollment. If eligible, a student will be allowed to continue receiving Grad PLUS loan funding until the end of their program, or up to 3 years, whichever comes first.
Students who change programs, transfer, have a break in enrollment, or did not previously borrow a Federal Direct Loan are not eligible for a Grad PLUS loan.
Students approved under this provision must still meet credit requirements and complete all necessary application steps. Eligibility is not automatic and will be reviewed on a case-by-case basis. Students who believe they may qualify should contact the Financial Aid Office for more information.
Parent PLUS Loan Program
The Federal Direct Parent PLUS Loan program will remain available; however, several significant changes will apply. Parents of dependent undergraduate students may borrow up to $20,000 annually, with a lifetime (aggregate) maximum of $65,000 per student, replacing the previous ability to borrow up to the full cost of attendance.
These limits are per student (not per parent), and the combined borrowing of all parents may not exceed these amounts. Parent PLUS Loans will continue to require a separate application and credit check, with repayment beginning within sixty (60) days after the full disbursement of the loan.
The grandfather (legacy) provision states that if a student or parent has a Federal Direct Loan disbursed before July 1, 2026, the parent may continue borrowing under the previous loan limits (up to the cost of attendance) for up to three academic years or for the remainder of the student鈥檚 expected time to complete their program, whichever comes first.
Loan reduction Based on Enrollment Status
Beginning with the 2026鈥�2027 aid year, federal student loan amounts will be reduced based on a student鈥檚 enrollment status. This change means that students enrolled less than full-time in a semester and/or academic year will no longer be eligible to borrow the full annual loan limit. Instead, the amount they may borrow will be reduced in proportion to their enrollment status. This reduction applies to Federal Direct Loans, including Direct Subsidized, Direct Unsubsidized Loans, and Direct Graduate PLUS Loans. 天美mv传媒 considers full-time enrollment for undergraduate students to be 12 hours each semester/24 hours a year, and full-time enrollment for graduate students to be 9 hours each semester/18 hours per year.
What this means for students:
A student enrolled half-time (for example, 6 credits in fall and 6 credits in spring) may only be eligible to borrow 50% of the annual loan amount for that award year. Also, if a student drops below full-time in a semester, future loans may be reduced. This is why it is important for all students to check with Financial Aid before dropping any classes.
A student enrolled less than half-time is not eligible for a federal direct loan. 天美mv传媒 considers half-time enrollment for undergraduates to be 6 hours, and graduates are half-time at 5 hours.
Repayment
Beginning July 1, 2026, new federal legislation will introduce major changes to student loan repayment options. All existing repayment plans will be discontinued for new loans first disbursed on or after this date, and the U.S. Department of Education will offer only two repayment pathways: a new tiered Standard Repayment Plan with fixed terms of 10, 15, 20, or 25 years based on the borrower鈥檚 loan amount, and the Repayment Assistance Plan (RAP), which provides support for eligible borrowers and continues to count toward Public Service Loan Forgiveness (PSLF) under more restrictive criteria.
New Parent PLUS borrowers will only be eligible for the new tiered Standard Repayment Plan and will not be eligible for income-driven repayment plans or the Repayment Assistance Plan (RAP).
Additionally, beginning July 1, 2028, borrowers currently on the SAVE, PAYE, or ICR income-driven plans鈥攐r in an administrative forbearance associated with one鈥攚ill be required to transition into either the new Standard Repayment Plan or RAP; those who do not select a plan will be automatically enrolled by the Department of Education.
For more information on the different repayment plans, visit .