One Big Beautiful Bill Act Important Information

The One Big Beautiful Bill Act (OBBA) 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.

Important: As the legislation associated with OBBBA is not final, the information on this page is subject to change. Our office will continue to make updates as new information becomes available. 

 

FAFSA Changes

  • Family-owned small businesses/farms do not need to be included in family assets.
  • Foreign earned income from 2024 is included in the adjusted gross income.

 

Federal Pell Grant

  • Students who have a Student Aid Index (SAI) that exceeds twice the maximum Pell Grant amount for that year are ineligible to receive the Federal Pell Grant.
    • For 2026-2027, the maximum Pell Grant amount is $7,395. Students with an SAI above $14,790 will not qualify.
  • Students who receive scholarships and grants from non-federal aid sources up to the institution’s annual Cost of Attendance (COA) are ineligible to receive the Federal Pell Grant even if otherwise eligible.

 

Federal Loan Program

Undergraduate students

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 same program of study 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 program of study at the same institution.

 

Graduate Students

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: Changing programs 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.


Lifetime Aggregate Loan Limits: The lifetime aggregate loan limit includes undergraduate, graduate, and professional borrowing, but excludes Parent PLUS loans is $257,000.

 

 

For more in-depth information on the federal loan programs, please visit our Federal Student Loans page