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Changes to Financial Aid Beginning in Fall 2026

The federal government is making changes, effective July 1, 2026, to student loans for the 2026–2027 academic year under the One Big Beautiful Bill Act (OBBBA). These changes may affect your federal student loan eligibility and limits while encouraging responsible decisions about student loan debt.

Our Financial Aid team is here to help you understand these changes and how they may impact your academic path. 

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Key Changes for 2026–2027

There are two major changes that will affect PBSC students:

1. New Federal Loan Limits

Starting July 1, 2026, the amount you can borrow in federal student loans will be based on your grade level, dependency status and how many credits you’re taking. 

Instead of using only "full-time" or "part-time" status, your federal student loan amount is now based on your enrollment intensity, which is the percentage of full-time credits you're taking.

This means:

  • Taking fewer credits = receiving a smaller loan
  • Dropping a class = loan amount may decrease
  • Adding a class (before disbursement) = loan amount may increase

This rule applies to Direct Subsidized and Unsubsidized Loans.

Examples of How Enrollment Intensity Affects Your Loan Amount

The examples below show how your enrollment intensity may affect your federal student loan amount. These are examples only and do not reflect your actual loan eligibility or award.

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Example 1: The table shows annual loan amounts for first-year dependent students based on enrollment intensity, ranging from $5,500 for full-time (12+ credits) to $1,375 for less-than-half-time (3 credits), with amounts decreasing proportionally as enrollment decreases.

  First-Year Dependent Student — Annual Loan Limit: $5,500
  Enrollment Intensity   Credits   % of Eligibility   Loan Amount
  Full-Time   12 or more   100%   $5,500
  Three-Quarter-Time   9   75%   $4,125
  Half-Time   6   50%   $2,750
  Less Than Half-Time   3   25%   $1,375
  Full-Time
Credits
  12 or more
% of Eligibility
  100%
Loan Amount
  $5,500
  Three-Quarter-Time
Credits
  9
% of Eligibility
  75%
Loan Amount
  $4,125
  Half-Time
Credits
  6
% of Eligibility
  50%
Loan Amount
  $2,750
  Less Than Half-Time
Credits
  3
% of Eligibility
  25%
Loan Amount
  $1,375

 

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Example 2: The table shows annual loan amounts for independent students based on enrollment intensity, ranging from $9,500 for full-time (12+ credits) to $2,375 for less-than-half-time (3 credits), with amounts decreasing proportionally as enrollment decreases.

Independent Student (any year) — Annual Loan Limit: $9,500
  Enrollment Intensity   Credits   % of Eligibility   Loan Amount
  Full-Time   12 or more 100% $9,500
  Three-Quarter-Time 9 75% $7,125
  Half-Time 6 50% $4,750
  Less Than Half-Time 3 25% $2,375
  Full-Time
Credits
  12 or more
% of Eligibility
100%
Loan Amount
$9,500
  Three-Quarter-Time
Credits
9
% of Eligibility
75%
Loan Amount
$7,125
  Half-Time
Credits
6
% of Eligibility
50%
Loan Amount
$4,750
  Less Than Half-Time
Credits
3
% of Eligibility
25%
Loan Amount
$2,375

 

What Happens If You Change Your Schedule?
Because loan amounts are tied to enrollment intensity, dropping or withdrawing from classes can reduce your loan eligibility.

  • If you drop a class: Your enrollment intensity may decrease resulting in your loan possibly being reduced.
  • If you withdraw from a class: Your loan amount may decrease, and you may still be responsible for tuition charges.
  • If you withdraw from all classes: A Return of Title IV (R2T4) calculation is required, and you may owe a balance.

2. New Loan Limits for Parent PLUS Loans

There are new borrowing limits for Parent PLUS Loans:

  • the parent can borrow up to $20,000 per year for each student
  • total borrowing limit is $65,000 per student
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Legacy Borrowers

If you borrowed federal student loans before the new Big Beautiful Bill Act changes, you are considered a Legacy Borrower. This means your loans may follow a different set of rules than students borrowing for the first time under the new system.

Legacy Borrowers may:

  • Keep their original loan limits, depending on their borrowing history
  • See different proration rules compared to new borrowers
  • Have access to transition protections designed to prevent sudden changes to their aid
  • Continue under certain previous loan terms unless they choose to opt into the new structure

If you’re unsure whether you are a Legacy Borrower or how these updates apply to you, our Financial Aid Office can help you review your status and understand your options.

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We’re Here to Help You Every Step of the Way

If you have questions about how these changes may affect you, we encourage you to reach out:

Academic Advising: Get help selecting the right courses and staying on track toward your degree.

Financial Aid: Get support understanding your loan eligibility and how your enrollment level may impact your aid.

 Additional Resources