Federal Updates
ONE BIG BEAUTIFUL BILL ACT
P.L. 119-21 The One Big Beautiful Bill Act (OB3 or OBBBA) was enacted into law on July 4, 2025, through the federal budget reconciliation process. OBBBA includes significant reforms to federal student aid programs. It changes the eligibility for Pell Grants, sets new limits for federal student loans, and requires loan proration for less than full-time enrollment. Most changes, including the new loan limits, will apply starting the 2026-27 academic year.
Changes to the Pell Grant program
Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on (APP-25-23) 2026–27 FAFSA Form and Pell Grant Eligibility Updates.
Also, students whose non-federal aid or scholarships (state, private, institutional) meet or exceed their full cost of attendance are ineligible to receive a Pell Grant, even if otherwise eligible.
Federal Direct Loan Eligibility
Beginning with the 2026-27 academic year, federal rules change how Federal Direct Loan eligibility is calculated for undergraduate students. Previously, students could receive their full annual loan eligibility as long as they were enrolled at least half-time. Beginning Fall 2026, eligibility may be reduced for students who are not enrolled full-time across the academic year.
Full-time enrollment is now based on the total credits completed during the academic year:
- Fall and Spring: 24 credits total (typically 12 credits each semester)
- Fall, Spring, and Summer: 36 credits total (typically 12 credits each term)
For example, 12 credits in Fall plus 12 in Spring meets the full-time standard for the year, while 9 credits in Fall plus 12 in Spring falls below it. Enrolling in fewer than the full-time number of credits may reduce annual loan eligibility. Adding or dropping classes can also change eligibility and may increase or decrease future disbursements.
Because every student's situation is different, contact the Financial Aid Office with questions about how your enrollment affects your Federal Direct Loan eligibility.
Federal Direct Loan information
Parent PLUS Loan Borrowing Limits - Updates Under the One Big Beautiful Bill Act
New borrowing limits take effect July 1, 2026. Prior to that date, Parent PLUS Loans were limited to the student's Cost of Attendance (COA) minus any other financial aid received. Effective July 1, 2026, parents may still borrow up to the student's COA minus other aid, but borrowing is now subject to the following caps:
- Annual limit: up to $20,000 per dependent student per academic year
- Aggregate (lifetime) limit: up to $65,000 per dependent student
These limits apply to the combined total borrowed by both parents. While more than one parent may take out a Parent PLUS Loan for the same student, their combined borrowing cannot exceed the annual or aggregate limits above.
Contact the Financial Aid Office with any questions about how these changes affect you.
Financial Aid Office
402-437-2610
financialaid@southeast.edu