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Changes to Financial Aid Beginning in Fall 2026

The federal government made 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. 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. Reduction of Loans for Less-Than-Full-Time Students

Students enrolled in less than a full-time courseload (12 credits) will have loan amounts reduced in proportion to the number of credits they are taking. The federal regulations require institutions to apply a Schedule of Reductions (SOR) formula to loan amounts based on a student's enrollment intensity, which is the percentage of full-time credits a student is enrolled in. 

The chart below shows how a student's enrollment intensity impacts loan amounts. For example, students enrolled full time with 12 credits or more are eligible for 100% of the maximum loan amount, while students enrolled part time in 9 credits are eligible for 75% of the maximum loan amount. 

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Enrollment Intensity and Loan Impact
Credit Hours Enrollment Intensity 
12 or more 100%
11 92%
10 83%
9 75%
8 67%
7 58%
6 50%
Below 6 Credits Ineligible for loan 
12 or more
Enrollment Intensity
100%
11
Enrollment Intensity
92%
10
Enrollment Intensity
83%
9
Enrollment Intensity
75%
8
Enrollment Intensity
67%
7
Enrollment Intensity
58%
6
Enrollment Intensity
50%
Below 6 Credits
Enrollment Intensity
Ineligible for loan 

 

What happens if I change my class 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.
  • If you add a class before your loan is disbursed: your loan amount may increase. 

Will I owe tuition payments? 
The amount of federal direct loan funding available may be less than the amount initially included in a student's financial aid award offer. Such reductions may result in an outstanding balance on the student's account. Any unpaid balance resulting from a Schedule of Reductions adjustment or other institutional charges is the responsibility of the student. 

Which kinds of loans does this impact? 
The reduction of loans for less-than-full-time students only impacts federal direct subsidized and unsubsidized loans. It does not apply to Parent PLUS Loans. 

 

2. New Loan Limits for Parent PLUS Loans

Per the changes under the One Big Beautiful Bill Act (OBBBA), 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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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