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 “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

These legacy provisions will last for up to three years, or until the published program length, whichever is less. Example: The graduate phase of the Physician Assistant Studies program is published as six semesters. The legacy provisions would last six-consecutive semesters, or until July 1, 2029, whichever comes first.

A student will lose their legacy provision 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 Undergraduate Students

Topic	Change	Notes
Lifetime Aggregate 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.	Legacy provisions allow for current parents borrowers to borrow up to cost of attendance (COA) minus all other gift aid
Parent PLUS Loan Lifetime 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.	Legacy provisions do 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 legacy provisions DO NOT apply.

Federal student loans will now be prorated for less than full-time enrollment. For undergraduate students who are enrolled in less than 12 credits/semester, their federal loans will have a reduced annual loan limit

Example: An undergraduate student enrolls in 6 credits for the fall. 6 credits enrolled 12 credits to be considered full-time = 0.5 The student is now only eligible for 50% 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 “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

A parent will lose their legacy provision if their student

Withdraws from their program
Takes a leave of absence from their program
Transfers 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 new combined parent borrowers may borrow $20,000 per year per dependent student.	Legacy provisions allow for current parents borrowers to borrow up to cost of attendance (COA) minus all other gift aid.
Parent PLUS Loan Lifetime 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.	Legacy provisions do 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 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 “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

These legacy provisions will last for up to three years or until the published program length, whichever is less. Example: The graduate phase of the Physician Assistant Studies program is published as six semesters. The legacy provisions would last six-consecutive semesters, or until July 1, 2029, whichever comes first.

A student will lose their legacy provision 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	Eliminates the Graduate PLUS loan program.	Students with legacy provisions 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. Only the PsyD program currently qualifies as a professional program.	Most of our graduate students fall under the $20,500/year graduate student category. Waiting on the Department of Education to further clarify who is defined as a professional student.
Graduate Lifetime Aggregate Limit *effective July 1, 2026	The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students, and does not include amounts borrowed as an undergraduate.	Most of our graduate students fall under the $100,000/lifetime graduate student category. Waiting on the Department of Education to further clarify who is defined as a professional student. Students with legacy provisions may continue to borrow up to their current aggregate limit.
Lifetime Aggregate 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.
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 legacy provisions DO NOT apply.

Federal student loans will now be prorated for less than full-time enrollment. For graduate students who are enrolled in less than 9 credits/semester their federal loans will have a reduced annual loan limit

Ex: A graduate student enrolls in 6 credits for the fall. 6 credits enrolled 9 credits to be considered full-time = 0.666 The student is now only eligible for 67% 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, (413) 748- 3108 or financialaid@springfieldcollege.edu.