2026 Federal Financial Aid Updates
One Big Beautiful Bill Act (OBBBA) (H.R.1)
The One Big Beautiful Bill Act (OBBBA) (H.R.1) was signed into law by President Donald Trump in July 2025. The OBBBA includes significant changes to federal financial aid that took effect July 1, 2026.
Undergraduate Students
Federal Pell Grant
Federal Direct (Stafford) Loans
Parent PLUS Loans
Graduate Students
Loan Limits
Graduate PLUS Loans
Loan Proration
Beginning in Fall 2026, the amount of federal student loans you can receive will depend on how many degree-required credit hours you take each term.
You must still be enrolled at least half-time to qualify for federal student loans. However, being half-time does NOT guarantee your full loan amount anymore
HOW WAS IT BEFORE?
As long as you were enrolled at least half time, you could receive your full federal loan amount, even if you were not full time.
WHAT’S DIFFERENT NOW?
To receive your full loan amount, you must be enrolled full time in degree-required courses. If you are enrolled less than full time, your loan will be reduced. The reduction is based on how many degree-required credit hours you take compared to full-time enrollment for the year.
Bottom line: Fewer credit hours = reduced loan disbursement.
HOW IS MY LOAN AMOUNT CALCULATED?
Your loan amount for each term is calculated using this formula: Your degree-required credit hours ÷ Full-time credit hours for the year = Percentage of your annual loan you can receive.
* Legacy Provisions
Under the legacy rules, some parents and/or students may continue borrowing Parent and/or Graduate PLUS loans and remain under the current aggregate borrowing limits, for a maximum of three years, if you:
** Expected Time to Credential (Legacy Exclusion Period)
The expected time to credential – as it relates to interim exception (legacy or grandfathered) borrowing – is defined as the following:
From July 1, 2026, the expected time for a student to complete a program that is equal to or the lesser of –
- Three academic years; or
- The period determined by calculating the difference between –
- The program length for the program of study in which the student is enrolled; and
- The period of such program of study that a student has completed as of the date of determination.
The interim exception would extend the pre – July 1, 2026 loan limits and Graduate PLUS eligibility beyond July 1, 2026 to those students who were enrolled in a program of study as of June 30, 2026 and received a federal student loan for that program of study prior to July 1, 2026.
Lifetime Loan Limits
What This Means for You
Federal Guideline Comparisons
Please review the chart below to see how federal guidelines compare before and after July 1, 2026.
| Borrower Type | Legacy Aggregate Combined Limits | New Borrower Aggregate Limits | Iifetime Limit for Non-Legacy Borrowers |
|---|---|---|---|
| Dependent Undergraduate Students Whose Parents Can Borrow PLUS | $31,000 (maximum $23,000 Subsidized) | $31,000 (maximum $23,000 Subsidized) | $257,500 (on all federal Direct/FFEL/HEAL/Health, consolidated, canceled, repaid, forgiven, and discharged loan amounts) |
| Independent AND Dependent Undergraduate Students Whose Parent CANNOT Borrow PLUS (denied based on credit) | $57,500 (maximum $23,000 Subsidized) | $57,500 (maximum $23,000 Subsidized) |
|
| Parent PLUS | No aggregate limit | $65,000/Dependent (without regard to amounts forgiven, repaid, or discharged) | N/A |
| Graduate Student Who Has Never Been A Professional Student | $138,500 (including loans borrowed at the undergraduate level) | $100,000 (Does NOT included any amounts borrowed at the undergraduate level or PLUS) | $257,500 (on all federal Direct/FFEL/HEAL/Health, consolidated, canceled, repaid, forgiven, and discharged loan amounts) |
| Professional Student* who is or has been a Graduate Student | $138,500 (including loans borrowed at the undergraduate level) | $200,000 (Does NOT included any amounts borrowed at the undergraduate level or PLUS) |
|
| Graduate PLUS | No aggregate limit | Graduate PLUS program eliminated as of July 1, 2026 | N/A |
| *Note: No degrees at AUM are classified as Professional degrees; however, some students may have been considered Professional students at other institutions and are returning as Graduate Students who might meet this definition. | |||
NEED HELP?
If you have questions about how your enrollment affects your financial aid, contact the Office of Financial Aid.
[email protected]
334-244-3571
111 Taylor Center
