The Working Families Tax Cut Act (formerly the One Big Beautiful Act) was signed into law by Congress on July 4, 2025. This bill features significant changes to the Federal Pell Grant program, Federal Student Loan Program, and Student Loan Repayment plans. These changes will be implemented for the 2026-2027 academic year.
Loan Proration: Federal Stafford loans will be prorated (reduced) based on a student’s enrollment by semester and annually for less than full time enrollment. If a student plans to attend below full-time hours (minimum 12 hours per semester/24 hours a year), the loan amount offered will be adjusted.
Parent PLUS Loan: Parents who wish to borrow a Parent PLUS loan for a new undergraduate, dependent student attending YSU during the 2026-2027 academic year, and forward, are limited to borrowing $20,000 a year per student with an aggregate (lifetime) loan limit of $65,000 per student.
Parent Plus Legacy Borrowers: Students, or parents, who received a disbursement of a Federal Student Loan (subsidized, unsubsidized, or Parent PLUS) before July 1, 2026, for the degree at the same institution will have a legacy provision, that allows them to borrow based on previous loan limits, for up to three academic years or the end of the dependent student's academic program, whichever comes first. To qualify, students must remain enrolled in the same degree at the same institution.
Loan Proration: Federal Stafford loans will be prorated (reduced) based on a student’s enrollment by semester and annually for less than full time enrollment. If a student plans to attend below full-time hours (minimum 6 hours per semester/12 hours a year), the loan amount offered will be adjusted.
Grad PLUS Loan: Graduate PLUS loans will be discontinued effective July 1, 2026, and will not be available for new federal student loan borrowers. Only students who qualify as Legacy Borrowers (see definition below) may still have access to a Grad PLUS Loan. Graduate students who do not qualify as Legacy Borrowers will not be eligible to borrow a Grad PLUS Loan.
Grad PLUS Loan Legacy Borrowers: A Grad PLUS Legacy Borrower is a graduate student who received a disbursement of a Federal Student Loan (subsidized, unsubsidized, or Grad PLUS) before July 1, 2026, for the same program of study at the same institution. Students who meet this criterion may continue borrowing under prior loan limits for up to three academic years or until program completion, whichever comes first.
Important: Students changing or starting a new degree after July 1, 2026 will be subject to the new borrowing limits and will not be eligible for the Grad PLUS Loan.
Loan Limits: Graduate students who borrow Federal Direct Unsubsidized Loans can receive up to $20,500 per year, with a $100,000 lifetime limit. These lifetime limits do not include any undergraduate loans. Professional students (see definition below) can receive up to $50,000 per year, with a $200,000 lifetime limit. These lifetime limits do not include any undergraduate loans.
Definition of Professional Student: A professional student, as defined by the Department of Education, is a student enrolled in a program of study in which upon completion will be awarded a professional degree. For a list of eligible professional degrees, please refer to the Federal Student Loans page.
Lifetime Aggregate Loan Limits: The lifetime aggregate loan limit includes undergraduate, graduate, and professional borrowing; regardless of amounts that have been repaid, forgiven, or discharged, but excludes Parent PLUS loans is $257,500.
For more in-depth information on the federal loan programs, please visit our Federal Student Loans page
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