Federal Student Aid Changes from the One Big Beautiful Bill Act

Changes for Undergraduate Students

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, which resulted in several changes to federal student aid. Stay up to date with recent announcements related to the One Big Beautiful Bill Act on studentaid.gov and One Big Beautiful Bill Act Updates.

Do These New Rules Apply To Me?

To qualify for an “interim exception” (legacy provisions) that allow students to keep their loan borrowing annual and aggregate limits the same under the current rules, you must

Be currently enrolled in your program of study before July 1, 2026, and
Have had any type of federal loan (Direct Subsidized, Direct Unsubsidized, or PLUS) disbursed to your bill before July 1, 2026, and
Have not exceed their published program length based on full-time enrollment

This interim exception will last for up to three years, or until the published program length, whichever is less.

Example: The Bachelor of Science in Physical Education program is published as a four-year program. If the student has attended for two years so far, they have two years left of qualifying for the interim exception or until July 1, 2029, whichever comes first.

A student will lose their interim exception if

They withdraw from their program
Take a leave of absence from their program
Transfer to another institution

Important note: For dependent undergraduate students, a change of major does not qualify as a change in program study, and therefore the interim exception rule may still apply.

Federal Aid Changes for Undergraduate Students

Topic	Change	Notes
Lifetime Loan Limit *effective July 1, 2026	There is a $257,500 lifetime borrowing limit on all federal student loans, excluding Parent PLUS loan amounts borrowed on your behalf.
Parent PLUS Loan Annual Limits *effective July 1, 2026	All new combined parent borrowers may borrow $20,000 per year per dependent student.	Interim exception allows for current parents borrowers to borrow up to cost of attendance (COA) minus all other gift aid
Parent PLUS Loan Aggregate Limit *effective July 1, 2026	All new combined parents borrowers may borrow up to $65,000 per dependent student in their lifetime. This limit is without regard to any PLUS loans that have been repaid, forgiven, canceled, or discharged.	Interim exception does not have a lifetime aggregate limit on Parent PLUS loan borrowing.
Loan Repayment Options *effective July 1, 2026	For borrowers who have loans disbursed on or after July 1, 2026, loans can only be repaid using one of two new repayment options: new standard repayment plan, new income-based repayment plan (RAP)	To explore these repayment plan options more in-depth, please visit studentaid.gov. For current borrowers who have no new loans disbursed after July 1, 2026, current repayment plan options may still be available.
Loan Deferment *effective July 1, 2027	Sunsets the economic hardship and unemployment deferments.	Borrowers with loans made on or before July 1, 2027, are still able to use these deferment options under the current rules.
Loan Forbearance *effective July 1, 2027	Loans made on or after July 1, 2027, are eligible for forbearance for up to nine months in any two-year period.	Current rules allow for a forbearance up to 12 months at a time, with a cumulative limit of three years.

Federal Loan Proration for ALL Students

* The following changes go into effect at the start of the 2026-27 school year. All students are impacted and the interim exception rule DOES NOT apply.

Federal student loans will now be prorated for less than full-time enrollment. For undergraduate students who are enrolled in less than 24 credits/academic year, their federal loans will have a reduced annual loan limit.

Parent PLUS loans are not subject to less than full-time loan proration.

Example: An undergraduate student enrolls in 12 credits for the fall, and 9 credits for the spring. 21 credits enrolled ÷ by 24 credits to be considered full time = 0.875. The student is now only eligible for 88% of the annual loan limit.

If you have any further questions or concerns, we may be reached at the Office of Financial Aid at Springfield College at financialaid@springfield.edu or (413) 748-3108.

Changes for Parents of Dependent Undergraduate Students

Do These New Rules Apply To Me?

To qualify for an “interim exception” (legacy provisions) that allow parents to keep their loan borrowing annual and aggregate limits the same under the current rules, your student must

Be currently enrolled in their program of study before July 1, 2026, and
Have had any type of federal loan (Direct Subsidized, Direct Unsubsidized, or PLUS) disbursed to their bill before July 1, 2026, and
Have not exceeded their published program length based on full-time enrollment

This interim exception will last for up to three years, or until the published program length, whichever is less. Example: The Bachelor of Science in Physical Education program is published as a four-year program. If the student has attended for two years so far, . they have two years left of qualifying for the interim exception or until July 1, 2029, whichever comes first.

A student will lose their interim exception if

They withdraw from their program
Take a leave of absence from their program
Transfer to another institution

Important note: For dependent undergraduate students, a change of major does not qualify as a change in program study, and therefore legacy provisions may still apply.

Federal Aid Changes for Parents of Dependent Undergraduate Students

Topic	Change	Notes
Parent PLUS Loan Annual Limits *effective July 1, 2026	All combined parent borrowers may borrow $20,000 per year per dependent student.	Interim exception allows for current parents borrowers to borrow up to cost of attendance (COA) minus all other gift aid.
Parent PLUS Loan Aggregate Limit *effective July 1, 2026	All combined parents borrowers may borrow up to $65,000 per dependent student in their lifetime. This limit is without regard to any PLUS loans that have been repaid, forgiven, canceled, or discharged.	Interim exception does not have a lifetime aggregate limit on Parent PLUS loan borrowing.
Loan Repayment Options *effective July 1, 2026	For parents of dependent students who borrow from the Parent PLUS loan program after July 1, 2026, they will only be eligible for the new standard repayment plan.	To explore these repayment plan options more in-depth, please visit studentaid.gov. For borrowers who have no new loans disbursed after July 1, 2026, current repayment plan options may still be available.
Loan Deferment *effective July 1, 2027	Sunsets the economic hardship and unemployment deferments.	Borrowers with loans made on or before July 1, 2027, are still able to use these deferment options under the current rules.
Loan Forbearance *effective July 1, 2027	Loans made on or after July 1, 2027, are eligible for forbearance for up to nine months in any two-year period.	Current rules allow for a forbearance up to 12 months at a time, with a cumulative limit of three years.

We strongly advise that you know how much Parent PLUS loan is borrowed each year. With the lifetime limit capped at $65,000 per student, parents will not be able to borrow the maximum $20,000/year for all four years of a traditional undergraduate program length. If you will need to borrow Parent PLUS for the entire length of your student's undergraduate degree, we recommend that you do not borrow more than $16,250/year per dependent student.

If you have any further questions or concerns we may be reached at the Office of Financial Aid at Springfield College, (413) 748- 3108 or financialaid@springfield.edu.

Changes for Graduate Students

Do These New Rules Apply To Me?

To qualify for “interim exception” (legacy provisions) that allow students to keep their loan borrowing annual and aggregate limits the same under the current rules, you must

Be currently enrolled in your program of study before July 1, 2026, and
Have had any type of federal loan (Direct Subsidized, Direct Unsubsidized, or PLUS) disbursed to your bill before July 1, 2026, and
Have not exceeded your published program length based on full-time enrollment

This interim exception will last for up to three years or until the published program length, whichever is less. Example: A master's degree is published as a three-year program. If the student has attened for two years so far, they have one year left of qualifying for the interim exception or until July 1, 2029, whichever comes first.

A student will lose their interim exception if

They withdraw from their program
Take a leave of absence from their program
Transfer to another institution

Federal Aid Changes for Graduate Students

Topic	Change	Notes
Graduate PLUS Loan Program *effective July 1, 2026	Eliminates the Graduate PLUS loan program.	Students who qualify for the interim exception may continue to borrow from the program.
Annual Loan Limit *effective July 1, 2026	Caps the annual loan limit at $20,500 for graduate students and $50,000 for professional students.	Most of our graduate students fall under the $20,500/year graduate student category. PsyD is Springfield College's only graduate program that falls under the "professional loan limit" category.
Graduate Aggregate Limit *effective July 1, 2026	The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students. This does not include amounts borrowed as an undergraduate, and does not include gradPLUS loan.	Most of our graduate students fall under the $100,000/lifetime graduate student category. PsyD is Springfield College's only graduate program that falls under the "professional loan limit" category. Students who qualify for the interim exception may continue to borrow up to their current aggregate limit.
Lifetime Loan Limit *effective July 1, 2026	$257,500 lifetime borrowing limit on all federal student loans, excluding Parent PLUS loan amounts borrowed on your behalf during your undergraduate years.	This limit does include gradPLUS loans borrowed, which is a new provision that was added. This limit is without regard to any loan amounts that may have been repaid, forgiven, cancelled, or discharged.
Loan Repayment Options *effective July 1, 2026	For borrowers who have loans disbursed on or after July 1, 2026, loans can only be repaid using one of two new repayment options: new standard repayment plan, new income-based repayment plan (RAP).	To explore these repayment plan options more in-depth, please visit studentaid.gov. For borrowers who have no new loans disbursed after July 1, 2026, current repayment plan options may still be available.
Loan Deferment *effective July 1, 2027	Sunsets the economic hardship and unemployment deferments.	Borrowers with loans made on or before July 1, 2027, are still able to use these deferment options under the current rules.
Loan Forbearance *effective July 1, 2027	Loans made on or after July 1, 2027, are eligible for forbearance for up to nine months in any two-year period.	Current rules allow for a forbearance up to 12 months at a time, with a cumulative limit of three years.

Federal Loan Proration for ALL Students

* The following changes go into effect at the start of the 2026-27 school year. All students are impacted and the interim exception DOES NOT apply.

Federal student loans will now be prorated for less than full-time enrollment. For graduate students who attend two or more semesters within an academic year, you must take 18-plus credits combined for the academic year to receive the full annual loan limit. If you are enrolled in less than 18 credits for the year in total, your federal loan(s) will be prorated accordingly.

Example: A graduate student enrolls in 7 credits for the fall, and 6 credits for the spring. 13 credits enrolled ÷ by 18 credits to be considered full time = 0.7222. The student is now only eligible for 72% of their annual loan limit.

If you have any further questions or concerns we may be reached at the Office of Financial Aid at Springfield College, (413) 748- 3108 or financialaid@springfieldcollege.edu.

Private Alternative Loan Information

This is to inform you of recent changes to federal student financial aid that emphasize the importance of a student using a loan co-signer(s), for private, alternative loans. Due to the One Big Beautiful Bill Act, there have been changes to federal aid that will impact the amount of federal direct and federal PLUS loan(s) students and parents may borrow.

We know that keeping track of and understanding all this new information could seem overwhelming at a time when you’re trying to do the best for your student. We are here to help you.

As a start, you can learn more about the loan changes we have posted below.

Due to the new, lower aggregate limits on parent PLUS loans and the elimination of graduate PLUS loans, many students may need to seek private alternative loans to finance their education and living expenses. What’s important to note is that private loan lenders may require students to have a creditworthy co-signer in order for the loan to be approved. Additionally, lenders may be more inclined to approve a student loan with a co-signer. Data shows that for one lender in particular, 83% of loans are approved with a co-signer, compared to 71% without.

We wanted to remind our students of the importance of having a creditworthy co-signer, especially with the changes coming to federal loans in the 2026-27 school year. To search for private loan lender options, please visit ELMSelect.com.

If you have any questions, please feel free to reach out to the Office of Financial Aid staff at financialaid@springfield.edu or by calling (413)-748-3108.