FAQ: New Regulatory Requirements

The “One Big Beautiful Bill (OBBB)” signed into law July 4, 2025 introduces key updates to federal financial aid programs effective July 1, 2026, with a focus on expanding access to education and supporting workforce readiness. Check the accordion below for common questions about the impact on Pell Grants and loans when those regulatory begin for the 2026-27 academic year. If you have a question not addressed below, contact the Financial Aid Office.

How will the OBBB impact Pell Grants for workforce programs?

Effective July 1, 2026, Pell Grant eligibility will be expanded to encompass short-term training programs between 150 and 599 hours, lasting 8 to 15 weeks, in vital sectors such as healthcare, IT, and skilled trades.

Awards will be prorated according to program length to ensure that students receive financial support that reflects their training duration. This expansion directly addresses the urgent needs of today's job market.

What expanded funding and protections are part of the bill?
Congress has committed $10 billion in mandatory funding to the Pell Grant program for 2026. This investment reinforces their commitment to ensuring that students can access the financial resources they need to pursue their aspirations.
How will Pell Grant eligibility be connected to the Student Aid Index (SAI) under the new bill?

Starting July 1, 2026, students with an SAI exceeding twice the maximum Pell Grant award will be ineligible for the Pell Grant. This adjustment aims to streamline eligibility and ensure that financial aid is distributed to those with the greatest need.

Foreign-sourced income will be included in financial calculations with the intention to improve the accuracy and fairness of eligibility assessments.

How will the bill impact the coordination of Pell Grants with other forms of aid such as scholarships?
To maximize the effectiveness of funding, students receiving full scholarships that cover the entire cost of attendance (COA) will not be eligible for the Pell Grant. This change aims to ensure that Pell funds are allocated to students who require additional financial support.
What remains constant for Pell eligibility in terms of enrollment under the new regulatory requirements that begin July 1, 2026?
The definition of full-time enrollment will remain firmly at 24 credits per academic year, and students taking fewer than half-time credits will continue to qualify for assistance. This commitment to accessibility ensures that all students have the opportunity to succeed.
How will the new regulations impact student and parent loans?

• There will be no changes to undergraduate subsidized loan eligibility, which continues to support students’ education costs.

• Parent loans will be subject to new annual limits of $20,000 and a lifetime cap of $65,000. This adjustment provides clearer planning for families.

• Loans will be pro-rated for students enrolled less than full-time, recognizing diverse educational pathways and ensuring that financial assistance is fair and proportional.

• Institutions will have the authority to set their own loan limits by program, enabling a tailored approach to financial aid that meets the specific needs of each academic path.

• New Repayment Landscapes: For new borrowers, there will be two available repayment plans: the Standard plan and the Revised Pay As You Earn (RAP) plan. This simplification is intended to make repayment options clearer for borrowers. 

These changes aim to provide more targeted financial assistance, streamline the aid process, and expand opportunities for students to access higher education.