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: Tuesday, July 13, 2026
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.
More information is available from the following sites:
What changed under the One Big Beautiful Bill Act?
Some of the key changes include the following:
- Graduate PLUS Loan Program eliminated
- Parent PLUS annual and loan limits
- Graduate/Professional annual and aggregate loan limits
- Federal Loan Program lifetime limits
- Loan Reduction for students below full-time
- Student Loan repayment
- Cost of Attendance impacts on the Federal Pell Grant
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 hanges under the One Big Beautiful Bill Act.
Frequently asked questions
Learn more about common questions regarding the One Beautiful Bill Act.
No, effective July 1, 2026, Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
No, students who meet the legacy provisions may not forfeit their legacy borrower status and must continue to borrow under the current loan regulations prior to OB3.
A professional student is a student enrolled in a program of study that awards a professional degree upon completion of the program. A professional degree is a degree that signifies both completion of the academic requirements for beginning practice in a given profession, and a level of professional skill beyond that normally required for a bachelor’s degree; is generally at the doctoral level, and requires at least six academic years of postsecondary education coursework for completion, including at least two years of postbaccalaureate level coursework; generally requires professional licensure to begin practice; and includes a four digit program CIP code that are the same as the 11* spelled out (medicine, pharmacy, law, divinity, etc.) but must also lead to licensure and have at least two years of post-baccalaureate study.
*Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div., or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).
Note: Graduate-level students who do not meet this definition are considered graduate students.
More information from NASFAA regarding professional students >
Federal full-time status is 12 credits per semeseter for undergraduate students and 9 credits per semester for graduate students.