The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025, and contained several provisions impacting federal student aid, including Federal Student Loan repayment plans, Federal Student Loan limits, Federal Parent PLUS Loans, and Federal Graduate PLUS Loans. All changes are scheduled to go into effect July 1, 2026.
What Does It Mean for You?
The One Big Beautiful Bill fundamentally reshapes how students finance their education. While this is not an exhaustive overview, the information provided is of greatest significance to the Point Park University community.
FAFSA & Financial Aid Eligibility Changes
- Family farms and family-owned small businesses will no longer be counted as assets (reverting to rules before FAFSA Simplification)
- Family Farm – Farms on which the family resides
- Small Business – 100 or fewer full-time (or full-time equivalent) employees
- Family-owned commercial fisheries are now also exempt from asset reporting
- Foreign income must now be included in the Adjusted Gross Income (AGI) for Pell Grant eligibility
Pell Grant Updates
- Students whose Cost of Attendance (COA) is fully covered by non-federal aid will no longer be eligible for a Federal Pell Grant.
Ends the previous allowance for Pell Grants to exceed COA when combined with other aid
- Example: A Pell-eligible student with a scholarship covering the full Cost of Attendance will no longer receive both the scholarship and the Pell Grant
Pell Grants & High Student Aid Index (SAI)
- Students with an SAI greater than twice the maximum Pell Grant amount will be ineligible for any Pell Grant
- Example: If the max Pell Grant is $7,395, students with an SAI over $14,790 will not qualify
Undergraduate Direct Student Loan Updates
Table that shows changes to Undergraduate Direct Student Loans under One Big Beautiful Bill Act
| Current Limits (before July 1, 2026) |
Changes Effective July 1, 2026 |
- Annual and aggregate limits are based on dependency status
- Dependent students
Freshman: $5,500
Sophomore: $6,500
Junior/Senior: $7,500
- Independent students
Freshman: $9,500
Sophomore: $10,500
Junior/Senior: $12,500
- Maximum Lifetime Borrow Amount:
- Dependent: $31,000 total
- Independent: $57,500 total
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- Loans must be prorated based on enrollment status
- Undergraduate Annual Limits: Unchanged
- Undergraduate Aggregate Limit: Unchanged
- Total Aggregate Limit: $257,500 across all federal loan programs (undergraduate and graduate)
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Parent PLUS Loan Updates
Table that shows changes to Parent Plus Loans under the One Big Beautiful Bill Act
| Current Limits (before July 1, 2026) |
Changes Effective July 1, 2026 |
- Annual Limit: May borrow up to the cost of attendance
- Aggregate Limit: No limit
- Eligibility is based on a parent credit check and half-time enrollment
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- Annual Limit: $20,000 per student (combined from all parents)
- Aggregate Limit: $65,000 per student
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or until program completion, whichever is less. Students must also remain in the same major (i.e., academic program) to be eligible for loans under this provision.
- New Borrowers: Must seek alternative funding if limits are exceeded
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Graduate Direct Loan Updates
Table that shows changes to Graduate Direct Loans under the One Big Beautiful Bill Act
| Current Limits (before July 1, 2026) |
Changes Effective July 1, 2026 |
- Annual Limit: $20,500
- Aggregate Limit: $138,500 (includes undergraduate borrowing)
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- Graduate Students:
- Loans must be prorated based on enrollment status – do not link this to anything
- Annual limit remains $20,500
- Aggregate limit = $100,000 (excludes undergrad borrowing)
- Professional Students:
- Loans must be prorated based on enrollment status
- Annual limit = $50,000
- Aggregate limit = $200,000
- Total Aggregate Limit: $257,500 across all federal loan programs (undergraduate and graduate)
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Graduate PLUS Loan Updates
Table that shows changes to Graduate Plus Loans under One Big Beautiful Bill Act
| Current Limits (before July 1, 2026) |
Changes Effective July 1, 2026 |
- Annual Limit: mined by the formula of “Cost of Attendance – Other Aid (i.e. grants, scholarships, other loans)”
- Aggregate Limit: No limit
- Eligibility is based on student enrollment and a minimal credit check of the applicant
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This program is to be discontinued for new borrowers.
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or until program completion, whichever is less. Students must also remain in the same major (i.e., academic program) to be eligible for loans under this provision.
Prior eligibility requirements will apply to legacy borrowers.
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Direct Loan Repayment Updates
Table that shows changes to Direct Loan Repayment under One Big Beautiful Bill Act
| Current Plans (before July 1, 2026) |
Changes Effective July 1, 2026 |
Fixed-Term Plans:
- Standard Repayment
- Graduated Repayment
- Extended Repayment
- Income Sensitive Repayment
Income-Driven Plans (IDR):
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Saving on a Valuable Education (SAVE)
- Replaced Revised Pay As You Earn (REPAYE)
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First Loan Borrowed on or after July 1st, 2026
- New Standard Repayment Plan:
- Four Fixed-Terms:
- 10 years: balances <$25,000
- 15 years: balances between $25,000–$49,999
- 20 years: balances between $50,000–$99,999
- 25 years: balances $100,000+
- Only 10-year plans qualify for Public Service Loan Forgiveness (PSLF). Note: PSLF requires at least 10 years of repayment.
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If you have questions about how these changes may affect you, please don’t hesitate to reach out to our financial aid experts at financialaid@pointpark.edu or call 412-392-3930. Our team is here to help you understand your options and plan ahead.
