Federal student aid changes coming in 2026

What’s changing on July 1, 2026

Congress passed the One Big Beautiful Bill Act (OBBBA) on July 3, 2025, and it was signed into law on July 4, 2025. This legislation makes significant changes to federal student loans, grants, and repayment options beginning July 1, 2026 for the 2026-27 academic year.

New federal loan rules for all borrowers

Enrollment-based loan proration

New restrictions beginning with the 2026-27 academic year for all student loan borrowers:

• If you enroll less than full time, your federal loan amounts will be prorated based on your number of credit hours.
• Changes to your enrollment status after a loan disbursement—such as dropping or withdrawing from courses—may affect your loan eligibility and could require adjustments to your awarded loan.
• This applies to Direct Subsidized and Unsubsidized Loans and to Graduate PLUS borrowers in all programs.
• This enrollment proration does not apply to Federal Parent PLUS loans.

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Parent PLUS loan updates

• Federal Parent PLUS loans are limited to cost of attendance minus other aid. Beginning with the 2026-27 academic year parents may borrow up to 20,000ドル per year and up to 65,000ドル total for each dependent undergraduate.
• Parent borrowers who took out a PLUS Loan for a student before July 1, 2026 and whose student continues in the same program may keep borrowing under the old PLUS rules for up to 3 years, or the student’s remaining expected time to credential, whichever is less.

Graduate & professional student changes

Graduate PLUS Loans

• Graduate PLUS Loans will no longer be available beginning July 1, 2026, for new borrowers, students beginning a new program or returning after a period of withdrawal or leave of absence.
• Current loan borrowers who began their program before July 1, 2026 may continue borrowing Federal Graduate PLUS Loans for up to three years of full‐time study, for the remaining length of their program, or until they withdraw or take a leave of absence—whichever occurs first.

Federal unsubsidized loans - grad students (new borrowers)

• New borrowers beginning a new graduate programwill have new loan limits:
  • Up to 20,500ドル per year
  • Up to 100,000ドル - aggregate unsubsidized loan limit
  • Lifetime maximum aggregate: 257,500,ドル includes all loans borrowed at all levels - subsidized, unsubsidized and Grad PLUS loans
• Current loan borrowers who began their program at WSU before July 1, 2026 may continue borrowing under the old loan limits for up to three years of full‐time study, for the remaining length of their program, or until they withdraw or take a leave of absence—whichever occurs first.

Federal unsubsidized loans for new borrowers in certain programs

• New borrowers beginning these designated programs: JD, MD, and PharmD will have new loan limits:
  • Up to 50,000ドル per year
  • Up to 200,000ドル- aggregate unsubsidized loan limit
  • Lifetime maximum aggregate: 257,500,ドル includes all loans borrowed at all levels - subsidized, unsubsidized and Grad PLUS loans
• Current loan borrowers who began their program before July 1, 2026 may continue borrowing under the old loan limits for up to three years of full‐time study, for the remaining length of their program, or until they withdraw or take a leave of absence—whichever occurs first.

Repayment plan changes

Beginning July 1, 2026, new loans will offer only two repayment options:

1. Standard Repayment Plan
2. Repayment Assistance Plan (RAP)
   • Income‐based
   • Offers loan forgiveness after a required number of consistent payments

Students with existing federal loans will keep their current repayment plan options.

Pell grant & other eligibility changes

• Students with a Student Aid Index (SAI) that is more than twice the maximum Pell Grant amount will no longer qualify for Pell.
• Students whose scholarships or grants already cover the full Cost of Attendance may not receive additional Pell funding.
• If you or any FAFSA contributors have foreign income, all foreign income must be included in the Adjusted Gross Income (AGI) used for Pell eligibility calculations.

More information coming soon

As federal agencies release more guidance, WSU will update this page with:

• Details on how these changes affect financial aid packaging
• Instructions for legacy (continuing) borrowers
• Updated tools to estimate borrowing eligibility