UNDERGRADUATE FAQ

One Big Beautiful Bill Act

These frequently asked questions address common concerns about changes to undergraduate financial aid. This page will be updated as we hear more questions and concerns and as we gain more federal guidance. For a fuller overview of the One Big Beautiful Bill Act, please visit Legislative Updates.

General FAQs

1. How do I qualify for legacy provisions?

You qualify for legacy provisions if you (or your parent) borrowed a federal student loan before July 1, 2026 while you were enrolled in your current program. If so, the new Parent PLUS loan limits do not apply to you.

2. Can I qualify for legacy provisions if I begin my program in summer 2026?

Some summer 2026 classes begin before July 1, 2026, which may allow students to borrow and receive loan funds before that date. However, we are still awaiting federal guidance on whether this would qualify a student for legacy provisions. This page will be updated once more information is available.

3. Can I opt out of my legacy status?

No. If you qualify for legacy provisions, you cannot choose to opt out and borrow under the new rules. As long as you maintain your legacy status, your financial aid will follow the legacy rules and regulations. 

4. How do I maintain my legacy status?

If you qualify, you can continue to borrow under legacy provisions for up to three years (through the end of the 2028-29 academic year) or until you are expected to complete your program of study - whichever comes first. 
You will lose your legacy status if you:

• Take a break from enrollment (excluding summer term), or
• Change your degree or certificate program on or after July 1, 2026

5. What happens to my loans if I am less than full-time?

Starting in the 2026–27 academic year, federal student loan eligibility for undergraduate students will be based on full-time enrollment for the academic year. If you enroll in fewer than 12 credits per term, your loan eligibility may be reduced.

Your eligibility will be adjusted based on your enrollment intensity, which means the percentage of full-time credits you take during the academic year.

For example, a dependent undergraduate freshman attending Fall 2026, Winter 2027, and Spring 2027 could borrow up to $5,500 for the academic year if enrolled full-time in all three terms:

• 12 credits in Fall
• 12 credits in Winter
• 12 credits in Spring

This equals 36 total credits for the academic year.

If the student instead enrolls in:

• 9 credits in Fall
• 7 credits in Winter
• 11 credits in Spring

the total enrollment would be: 9 + 7 + 11 = 27 credits

Because 27 credits is 75% of full-time enrollment for the academic year (27 ÷ 36 = 0.75), the student would be eligible to borrow 75% of the annual loan limit:

$5,500 × 0.75 = $4,125

The $4,125 could be divided across the Fall, Winter, and Spring terms based on the number of credits taken each term. Because enrollment may vary by term, loan disbursement amounts may not be equal each term. You must still be enrolled at least half-time (6+ credits) to be eligible for a Direct Loan disbursement in a term.

6. Am I still eligible for the Pell Grant?

You will not qualify for a Federal Pell Grant for the 2026–27 academic year if:

• Your Student Aid Index (SAI) is 14,790 or higher, or
• Your total non-federal grants and scholarships equals or exceeds your total cost of attendance

If neither of these situations applies and you meet all other eligibility requirements, you may still receive a Pell Grant.

7. Will my aid change if I change my major or program? 

Changing your major usually does not affect your financial aid. However, if you qualify for legacy provisions and change your program of study, you will lose your legacy status.
Examples include:

• Completing a bachelor’s degree and starting a graduate program
• Switching from a bachelor’s degree to an undergraduate certificate program

Parent PLUS Loan FAQs

1. How much can my parent borrow in Parent PLUS Loans?

If you qualify for legacy provisions, your parent can borrow up to your total estimated cost of attendance, minus other aid you are receiving. 
If you do not qualify for legacy provisions, your parent can borrow:

• Up to $20,000 per academic year
• Up to $65,000 total for your program

These limits are specific to you as the student, not per parent. 

2. How will my parent's loan repayment change?

If a parent borrows a Parent PLUS Loan or reconsolidation loan (that includes PLUS loans) on or after July 1, 2026, all outstanding Parent PLUS Loans must be repaid under a new tiered repayment plan. Additionally, all Parent PLUS Loans would be ineligible for Public Service Loan Forgiveness. 
Your parent should contact their federal student loan servicer details about their specific situation. 

3. My parent has never borrowed a Parent PLUS Loan. Can they borrow one now?

Yes. If you are required to report parental information on your FAFSA, your parent may be eligible to borrow a Parent PLUS Loan on your behalf. Whether or not you qualify for legacy provisions determines how much your parent can borrow.