Financial aid impact under federal legislation: One Big Beautiful Bill Act
This page is for informational purposes only and is based on the current understanding of the One Big Beautiful Bill Act’s proposed implementation by the U.S. Department of Education. This information is subject to change pending final technical specifications from the U.S. Department of Education.
Last updated: Thursday, July 30, 2026
What changed under the One Big Beautiful Act?
The One Big Beautiful Bill Act (OB3 or OBBBA) was signed into law on July 4, 2025, through the federal budget reconciliation process. This legislation contains significant provisions that reshape federal student financial aid nationwide.
- New lifetime maximum
- New lifetime maximum of $257,500 for all federal student loans combined, excluding Parent PLUS Loans
- New loan limit for students enrolled less than full-time
- New requirement for institutions to adjust the annual loan limit for students enrolled less than full-time.
- Major overhaul to the student loan repayment system
- Repayment options will be streamlined into only two plans: a new tiered standard repayment plan and a new income-driven repayment plan, called the Repayment Assistance Plan (RAP).
- Existing income-contingent repayment plans will sunset in 2028.
- New limits for Parent Loan for Undergraduate Students (PLUS)
- New borrowers will have an annual limit of $20,000 and an aggregate limit of $65,000 per dependent student. Historically, borrowers have been able to cover the full cost of attendance (both direct and indirect costs) through this program, as there was no specific limit.
- No Pell Grant for students fully covered by non-federal grants and scholarships
- Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
- Previously, a Pell-eligible student whose full COA was covered by non-federal sources could still receive a Pell Grant in addition to the non-federal aid.
- This change will affect student-athletes on full-ride scholarships, as well as other students who’s institutional, state, and/or private aid meet or exceed full COA.
- Institutions can reduce non-federal aid to below the COA to preserve Pell Grant eligibility.
- No Pell Grant for students with High Student Aid Index (SAI)
- OB3 closes the loophole that allowed students and families with low incomes, but significant assets, to receive Pell Grants.
- Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
- Some current students who received Pell Grants for the past two years through this loophole will lose eligibility in 2026-27.
- Inclusion of foreign income in Pell determinations
- Foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA.
- Families already listed foreign income on the FAFSA, but financial aid administrators previously had to manually review and determine if adding the foreign income to the AGI would make the student ineligible to receive the maximum Pell Grant.
- This change to FAFSA makes this an automated process.
- Some students and families with foreign income who received a Pell Grant for the past two years will lose eligibility in 2026-27.
- New lifetime maximum
- New lifetime maximum of $257,500 for all federal student loans combined, excluding Parent PLUS Loans
- New loan limit for students enrolled less than full-time
- New requirement for institutions to adjust the annual loan limit for students enrolled less than full-time.
- Major overhaul to the student loan repayment system
- Repayment options will be streamlined into only two plans: a new tiered standard repayment plan and a new income-driven repayment plan, called the Repayment Assistance Plan (RAP).
- Existing income-contingent repayment plans will sunset in 2028.
- Graduate PLUS Loan program eliminated
- Removes a longstanding federal funding option for graduate and professional students, who have historically been able to cover the full cost of attendance (both direct and indirect costs) through this program.
- Direct Loan limits changed
- Graduate student Direct Unsubsidized Loan annual limit unchanged ($20,500); new aggregate limit of $100,000* (not including undergraduate loans). The previous aggregate limit was $138,500, including undergraduate loans.
- New Professional student Direct Unsubsidized annual limit of $50,000; new aggregate limit of $200,000*.
- Additional Direct Unsubsidized Loan limits for certain health professions programs have been eliminated.
*While the underlying concept of a professional program is not new, the creation of loan limits based on whether a program is professional versus graduate level is new.
Legacy/interim exception provision for returning students
If you are a returning University of Nevada, Reno student who borrowed federal student loans for your current program before July 1, 2026, you may qualify for a temporary exception to certain federal loan changes. The Office of Financial Aid and Scholarships will notify you if you meet all federal eligibility requirements for this interim exception.
Federal Student Loan limits comparison
Direct Subsidized Loans and Direct Unsubsidized Loans have three different types of loan limits:
- Annual loan limit. The maximum loan amount you can borrow each academic year
- Aggregate loan limit. The maximum amount of unpaid principal balance minus any capitalized interest that you can have outstanding at any point in time on all of your subsidized and unsubsidized loans for undergraduate, graduate, or professional study
- Lifetime maximum loan limit. The maximum amount ($257,500) you can receive, regardless of any amount paid or discharged, in any combination of subsidized loans, unsubsidized loans, and Grad PLUS loans for graduate or professional study
Undergraduate Student loan limits
Compare undergraduate federal student loan limits before and after the One Big Beautiful Bill Act (OB3), including annual, aggregate, lifetime and Parent PLUS borrowing limits.
Undergraduate Student Loan Limits Before OB3 After OB3
- Dependent Students: $5,500-$7,500
(Subsidized $3,500-$5,500) - Independent Students: $9,500-$12,500
(Subsidized $3,500-$5,500)
- No change to base limit
- Required proration for less-than-full-time enrollment
- Dependent Students: $31,000
(Subsidized $23,000) - Independent Students: $57,500
(Subsidized $23,000)
- No change
- No limit
- $257,500
- Undergrad and graduate/professional combined; excludes Parent PLUS
- Parent PLUS: Up to the full cost of Attendance
- $20,000 Annual Loan Limit
- $65,000 maximum Loan Limit per dependent student (regardless of any amount paid or discharged)
Undergraduate Student Loan Limits Before OB3 After OB3
Annual Loan Limit
-
Before OB3
- Dependent Students: $5,500-$7,500
(Subsidized $3,500-$5,500) - Independent Students: $9,500-$12,500
(Subsidized $3,500-$5,500)
- Dependent Students: $5,500-$7,500
-
After OB3
- No change to base limit
- Required proration for less-than-full-time enrollment
Aggregate Loan Limit
-
Before OB3
- Dependent Students: $31,000
(Subsidized $23,000) - Independent Students: $57,500
(Subsidized $23,000)
- Dependent Students: $31,000
-
After OB3
- No change
Lifetime Maximum Loan Limit*
-
Before OB3
- No limit
-
After OB3
- $257,500
- Undergrad and graduate/professional combined; excludes Parent PLUS
PLUS Loans*
-
Before OB3
- Parent PLUS: Up to the full cost of Attendance
-
After OB3
- $20,000 Annual Loan Limit
- $65,000 maximum Loan Limit per dependent student (regardless of any amount paid or discharged)
*Legacy/Interim Exception available
Graduate Student loan limits
Review how federal graduate student loan limits change under the One Big Beautiful Bill Act (OB3), including annual, aggregate, lifetime and Graduate PLUS borrowing limits.
Graduate Student Loan Limits Before OB3 After OB3
- $20,500 Unsubsidized
- No Change to Base Limit
- Required proration for less-than-full-time enrollment
- $138,500
- Includes undergraduate loans
- $100,000
- Excludes undergraduate loans
- No limit
- $257,500
- Undergrad and graduate/professional combined; excludes Parent PLUS
- Graduate PLUS: Up to the full cost of Attendance
- Graduate PLUS No Longer Available
Graduate Student Loan Limits Before OB3 After OB3
Annual Loan Limit
-
Before OB3
- $20,500 Unsubsidized
-
After OB3
- No Change to Base Limit
- Required proration for less-than-full-time enrollment
Aggregate Loan Limit*
-
Before OB3
- $138,500
- Includes undergraduate loans
-
After OB3
- $100,000
- Excludes undergraduate loans
Lifetime Maximum Loan Limit*
-
Before OB3
- No limit
-
After OB3
- $257,500
- Undergrad and graduate/professional combined; excludes Parent PLUS
PLUS Loans*
-
Before OB3
- Graduate PLUS: Up to the full cost of Attendance
-
After OB3
- Graduate PLUS No Longer Available
*Legacy/Interim Exception available
Professional Student loan limits
Compare federal loan limits for professional students before and after the One Big Beautiful Bill Act (OB3), including separate limits for medical students, other professional students and Graduate PLUS loans.
Professional Student Loan Limits Before OB3 After OB3
- Medical Students: $40,500-$47,167 Unsubsidized
- Non-MD Professional: $20,500 Unsubsidized
- $50,000 Unsubsidized
- Required proration for less-than-full-time enrollment
- Medical Students: $224,000 (Includes undergraduate loans)
- Non-MD Professional: $138,500 (Includes undergraduate loans)
- $200,000 (Excludes undergraduate loans)
- No limit
- $257,500 (Undergrad and graduate/professional combined; excludes Parent PLUS)
- Graduate PLUS: Up to the full cost of Attendance
- Graduate PLUS No Longer Available
Professional Student Loan Limits Before OB3 After OB3
Annual Loan Limit*
-
Before OB3
- Medical Students: $40,500-$47,167 Unsubsidized
- Non-MD Professional: $20,500 Unsubsidized
-
After OB3
- $50,000 Unsubsidized
- Required proration for less-than-full-time enrollment
Aggregate Loan Limit*
-
Before OB3
- Medical Students: $224,000 (Includes undergraduate loans)
- Non-MD Professional: $138,500 (Includes undergraduate loans)
-
After OB3
- $200,000
- Excludes undergraduate loans
Lifetime Maximum Loan Limit*
-
Before OB3
- No limit
-
After OB3
- $257,500
- Undergrad and graduate/professional combined; excludes Parent PLUS
PLUS Loans*
-
Before OB3
- Graduate PLUS: Up to the full cost of Attendance
-
After OB3
- Graduate PLUS No Longer Available
*Legacy/Interim Exception available
Learn more about the One Big Beautiful Bill Act
Review trusted external resources from the National Association of Student Aid Financial Aid Administrators (NASFAA) and additional U.S. Department of Education information to explore more about the financial aid changes under the One Big Beautiful Bill Act.
One Big Beautiful Bill Act changes FAQ
The One Big Beautiful Bill Act includes significant changes to federal financial aid programs. This FAQ explains what has changed, when the changes take effect, and how they may affect current and future University of Nevada, Reno students.
The One Big Beautiful Bill Act (OB3) is a federal law that made significant changes to federal student financial aid programs beginning July 1, 2026. These changes affect federal student loans, Parent PLUS Loans, Graduate PLUS Loans, Pell Grants, and student loan repayment options.
Most federal financial aid changes under OB3 became effective on July 1, 2026 and apply beginning with the 2026–2027 academic year. Some repayment changes will be phased in over time.
OB3 affects many students receiving federal financial aid, including the following:
- Undergraduate students
- Graduate students
- Professional students
- Parents borrowing Parent PLUS Loans
The specific changes that apply depend on your academic program and the type of federal aid you receive.
Yes. If you are a returning University of Nevada, Reno student who borrowed federal student loans for your current academic program before July 1, 2026, you may qualify for a temporary exception to certain federal loan changes. The Office of Financial Aid and Scholarships will notify you if you meet all federal eligibility requirements for this interim exception.
The impact of OB3 depends on your individual circumstances, including the following:
- Your degree level
- Your enrollment status
- Your borrowing history
- Your federal loan eligibility
- Your Pell Grant eligibility
- Whether you receive Parent PLUS or Graduate PLUS Loans
Federal Student Loan FAQ: One Big Beautiful Bill Act changes
The One Big Beautiful Bill Act makes important changes to federal student loan programs, including borrowing options and eligibility. This FAQ explains what is changing, who may be affected, and what students should expect as the new provisions are implemented.
Yes. Beginning July 1, 2026, most borrowers are subject to a $257,500 lifetime maximum for federal student loans. This lifetime maximum includes the following:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Graduate PLUS Loans (if previously borrowed)
Parent PLUS Loans are not included in the lifetime maximum.
No. The lifetime maximum is based on the total amount borrowed, regardless of whether those loans have been repaid or discharged.
Your annual loan limit is the maximum amount you may borrow during a single academic year. The amount you are eligible to receive may be lower depending on the following:
- Your enrollment level
- Cost of Attendance (COA)
- Student Aid Index (SAI)
- Other Financial Assistance (OFA)
- Federal loan limits
The annual Direct Loan limits themselves generally have not changed for most students. However, beginning with the 2026–2027 academic year, institutions are required to reduce annual Direct Loan eligibility for students who enroll less than full-time.
No. The existing annual Direct Loan limits for undergraduate students remain the same. However, students enrolled less than full-time may receive a reduced annual loan amount because of the new Schedule of Reductions
Yes. Beginning with the 2026–2027 academic year, federal law requires institutions to reduce annual Direct Loan eligibility for students enrolled less than full-time. The reduction depends on your enrollment during the academic year.
Beginning July 1, 2026, new Parent PLUS Loan borrowers are subject to the following:
- A $20,000 annual borrowing limit
- A $65,000 aggregate borrowing limit per dependent student
Previously, eligible parents could generally borrow up to the student's full Cost of Attendance.
Not always. The new annual and aggregate Parent PLUS Loan limits may prevent some families from borrowing enough federal loans to cover their full educational costs. Families may wish to explore additional payment options if needed.
Your aggregate loan limit is the maximum amount of outstanding federal Direct Loans you may have at any one time. Unlike a lifetime limit, the aggregate limit reflects your current outstanding loan balance and can decrease if you repay loans.
No.The undergraduate aggregate loan limits remain:
- Dependent students: $31,000
- Independent students: $57,500
The subsidized loan maximum of $23,000 also remains unchanged.
Graduate students continue to have a $20,500 annual Direct Unsubsidized Loan limit, but several other federal borrowing rules changed. Beginning July 1, 2026:
- Graduate PLUS Loans are no longer available for most new borrowers.
- Aggregate Direct Loan limits decrease to $100,000 and no longer include undergraduate borrowing.
- A new $257,500 lifetime maximum loan limit applies.
For most students, no. Graduate PLUS Loans are no longer available for new borrowers after July 1, 2026. Students who qualify under the Federal Legacy/Interim Exception Provision may continue borrowing Graduate PLUS Loans for a limited period.
Professional students now have the following:
- A $50,000 annual Direct Unsubsidized Loan limit
- A $200,000 aggregate loan limit
- A $257,500 lifetime maximum loan limit
No. Beginning July 1, 2026, graduate and professional aggregate loan limits exclude undergraduate borrowing when determining eligibility under the new federal limits.
The impact depends on your:
- Degree level
- Current borrowing history
- Remaining federal loan eligibility
- Enrollment status
- Whether you qualify for the Legacy/Interim Exception Provision
Some students may see little or no change, while others may experience significant reductions in available borrowing.
The Office of Financial Aid and Scholarships will review your federal loan eligibility before awarding and disbursing federal loans. If you have questions about your remaining eligibility or borrowing limits, contact the Office of Financial Aid and Scholarships for an individualized review.
Some of the new limits may be temporarily delayed while you remain eligible under the Legacy/Interim Exception. Once your Legacy eligibility expires, all applicable federal loan limits and borrowing restrictions will apply.
Pell Grant FAQ: One Big Beautiful Bill Act changes
The One Big Beautiful Bill Act updates several aspects of the Federal Pell Grant program. This FAQ explains the new eligibility requirements, award changes, implementation timeline, and what current and prospective students should know.
Possibly. Beginning July 1, 2026, students whose entire Cost of Attendance is covered by non-federal grants and scholarships are no longer eligible to receive a Pell Grant, even if they otherwise meet Pell eligibility requirements.
It may. Student-athletes receiving full-ride scholarships, as well as other students whose institutional, state, and private scholarships fully cover their Cost of Attendance, may no longer qualify for a Pell Grant under the new federal rules.
Possibly. Institutions may reduce non-federal aid below the student's Cost of Attendance to preserve Pell Grant eligibility. Students should contact the Office of Financial Aid and Scholarships to discuss their individual situation.
Beginning with the 2026–2027 academic year, students with a Student Aid Index (SAI) of 14,790 or higher are no longer eligible for a Pell Grant under federal law.
OB3 made several changes to Pell Grant eligibility, including:
- New Student Aid Index (SAI) limits
- Changes involving non-federal scholarships
- Inclusion of foreign income in Pell Grant calculations
These changes may affect eligibility even if your family's income has not significantly changed.
Beginning July 1, 2026, foreign income is automatically included in the Adjusted Gross Income (AGI) used to determine Pell Grant eligibility through the FAFSA. Previously, financial aid administrators often had to manually review foreign income when determining Pell Grant eligibility.
Federal Student Loan repayment FAQ: One Big Beautiful Bill Act changes
The One Big Beautiful Bill Act introduces changes to federal student loan repayment, including new repayment options and updated program requirements. This FAQ explains how repayment may change, who is affected, and what borrowers should know moving forward.
Yes. OB3 significantly restructures federal student loan repayment. Repayment options will transition to:
- A new tiered Standard Repayment Plan
- A new income-driven Repayment Assistance Plan (RAP)
Existing income-contingent repayment plans will sunset in 2028.
Federal repayment changes will be implemented over time. Borrowers should monitor communications from their federal loan servicer and the U.S. Department of Education regarding available repayment options as implementation continues.