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Federal Updates and Resources
Federal Student Aid Updates
One Big Beautiful Bill Act (OBBBA) 鈥� Key Points for Students and Families
Important: This page reflects current known information and will be updated as official guidance becomes available from the Department of Education.
Overview
The One Big Beautiful Bill Act (H.R. 1) was signed into law on July 4, 2025. It introduces the most significant changes to federal student aid in decades, affecting loan limits, loan eligibility based on enrollment, Pell Grants, Graduate PLUS Loans, and Parent PLUS Loans.
Most provisions take effect July 1, 2026, impacting all federal aid processed for the 2026鈥�27 academic year. Some details are still being finalized by the U.S. Department of Education.
Undergraduate Student Changes
What is changing?
Parent PLUS Loans now have annual and lifetime caps for new borrowers:
- Annual limit: $20,000 per year, per student
- Lifetime limit: $65,000 per student
Who is a legacy borrower?
Any undergraduate student who borrowed any federal loan before July 1, 2026 and remains enrolled in the same program at the same institution. Legacy status is valid for up to 3 years or the remainder of the expected program length, whichever is less.
What is changing?
Annual Federal Direct Loan amounts are now prorated whenever a student is enrolled less than full-time in an academic year (fewer than 24 total credit hours undergraduates and fewer than 12 credits for graduates). This Schedule of Reductions (SOR) applies to all students 鈥� there is no legacy provision for this change.
Is there a legacy provision?
No. SOR applies to any student enrolled less than full-time after July 1, 2026, regardless of prior borrowing history.
How to protect loan eligibility?
Complete a minimum of 24 credit hours per academic year. If enrollment falls short in any term, loan eligibility in later terms may also be reduced and a balance due could result if drops occur after the refund period. Work with your academic advisor to plan a full-time schedule each term.
Federal Loan Alternatives for Undergraduates
What options exist if federal loan availability is reduced?
What is changing?
Nonfederal grants and scholarships may not exceed a student’s total Cost of Attendance. Pell Grant eligibility will continue to be determined based on financial need as calculated through the FAFSA.
Graduate Student Changes
What is changing?
The Graduate PLUS Loan will no longer be available to new borrowers beginning July 1, 2026. Graduate students who do not qualify under the legacy borrower provisions will not be eligible for this loan program.
Who remains eligible under the legacy provision?
You are considered a legacy borrower if you:
- Borrowed a federal student loan before July 1, 2026, while enrolled in your current graduate degree program;
- Continue enrollment in the same graduate program; and
- Do not have a break in enrollment after July 1, 2026.
Legacy eligibility remains in effect for up to three years or until your expected program completion date, whichever occurs first.
What if I change programs or take a leave of absence?
Changing to a new degree program鈥攅ven at the same institution鈥攐r taking a leave of absence may cause you to lose legacy borrower status. In that case, you would be treated as a new borrower and become subject to the updated loan eligibility requirements and borrowing limits.
What if my program takes longer than three years?
Legacy borrower status is limited to three years. If your program extends beyond that period, you will become subject to the new annual and lifetime loan limits, regardless of your previous borrowing history.
What alternatives are available?
The institution has compiled a list of private lenders as a starting point, but students may choose any lender they prefer. Other funding options, including private education loans, departmental assistantships, and fellowships, should also be explored.
What is changing?
Graduate students face the same SOR requirement as undergraduates: annual Federal Direct Loan amounts are reduced whenever enrollment falls below full-time. No legacy provision applies.
What is changing?
Effective July 1, 2026, the Federal Direct Unsubsidized Loan limits differ between graduate and professional students for the first time:
- Nonprofessional Graduate Students: $20,500 annually; $100,000 aggregate lifetime.
- Professional Graduate Students: $50,000 annually; $200,000 aggregate lifetime.
Who is a legacy borrower for this change?
Students enrolled in the same graduate program who borrowed any federal loan before July 1, 2026 and have not ceased enrollment. Legacy status lasts up to 3 years or the expected program length 鈥� whichever is less. Changing programs or taking a leave of absence can trigger new-borrower status.
Key Tips for Students
- Enroll full-time every term to avoid loan proration.
- Plan your full academic year schedule before the term begins 鈥� drops after the refund period can create a balance due.
- Know your borrower category 鈥� legacy or new 鈥� as it determines your loan limits and available programs.
- If you are a graduate student, explore private loan alternatives and payment plan options now that Graduate PLUS Loans are eliminated for new borrowers.
- Parent borrowers planning to borrow more than $20,000/year should explore supplemental financing options such as a private loan
- Contact your financial aid advisor before making any enrollment or program changes that could affect your borrower status.
- Monitor for updates as the U.S. Department of Education continues issuing guidance.
Frequently Asked Questions
Resources to help with completing the FAFSA can be found on the Department of Education鈥檚鈥�濃�� page.
The FAFSA questions ask for information about you (your name, date of birth, address, etc.) and about your financial situation. Depending on your circumstances (for instance, whether you鈥檙e a U.S. citizen or what tax form you used), you might need the following information or documents as you fill out the FAFSA application:
- Your Social Security number. (It is important that you enter it correctly on the FAFSA form!)
- Your parents鈥� Social Security numbers if you are a dependent student.
- Your driver鈥檚 license number if you have one.
- Your Permanent Resident card if you are not a U.S. citizen.
- Federal tax returns (IRS 1040) information including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are a dependent student.
- Foreign tax return or IRS 1040NR.
- Tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia, or Palau.
- Records of your untaxed income, such as child support received, interest income, and veterans noneducation benefits, for you, and for your parents if you are a dependent student.
- Information on cash; savings and checking account balances; investments, including stocks and bonds and real estate (but not including the home in which you live); and business and farm assets for you, and for your parents if you are a dependent student.
Access Missouri Grant
Priority deadline 鈥� February 2, 2026
You must submit your FAFSA庐 by February 1 in order to meet the priority deadline. Eligible students who apply on or before the priority deadline are guaranteed an award.
Award deadline 鈥� April 1, 2026
Eligible students who apply on or before the award deadline may be awarded based on available state funding and the number of eligible students.
Additional information can be found on the .
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