Legislative Updates

TEACH Grant 91视频 Financial Aid on Twitter

One Big Beautiful Bill Act (OBBBA or OB3)

Signed into law: July 4, 2025

罢丑别听 (OBBBA) is a new federal law that affects funding for many programs. While the law covers a wide range of programs, this page focuses on financial aid. These changes are subject to change pending final regulatory text, which is expected in the first half of 2026. We鈥檙e waiting for guidance from the Department of Education on how, when, and for whom the new rules will apply.

This page will be updated as we learn more about the OBBBA. Check back regularly for updates and answers to your questions.聽If you have a question not answered below, please feel free to email us at finaid@sou.edu.

There are currently no expected changes to Pell Grant amounts for the 2026-2027 school year.

Beginning with the 2026-2027 academic year, 91视频 will be required to prorate (reduce) federal direct loans for students enrolled less than full-time.

Federal graduate loan rules are changing on July 1, 2026, and the changes may affect how much you can borrow for the coming year. Please read this if you plan to use federal loans, particularly if you have been enrolled in your grad program for a while.

As of July 1, the Grad PLUS loan program ends, and new annual, aggregate, and lifetime limits take effect for graduate borrowing. You can review your loan balances at studentaid.gov.

There may be a temporary exception for you. If you were enrolled in your current program on June 30, 2026, AND you borrowed a federal student loan for that program before July 1, 2026, you may qualify for an 鈥渋nterim exception.鈥 This lets you keep borrowing under the old rules, including Grad PLUS, but only for a limited time.

The length of that continued eligibility is whichever is shorter: three years, or the time remaining of your expected time to credential (ETTC). Your ETTC is your program’s published length minus the time you have already attended. For a two-year program where you finished one year by spring 2026, one additional year would be covered. If you have already completed two years or more, no time remains, and the new rules apply to you immediately.

This is the point most likely to affect our students. The calculation is tied to your program’s published length, not to how long you have actually been enrolled. If you have been working through your program part-time and have been enrolled longer than the published length, you may not be eligible for the interim exception, even if you would otherwise qualify.

For more information, the National Association of Student Financial Aid Administrators (NASFAA) has published 鈥.鈥

Beginning with the 2026-2027 academic year:

  • Beginning with the 2026-2027 academic year, 91视频 will be required to prorate (reduce) federal direct loans for students enrolled less than full-time.
  • The Direct Unsubsidized Loan aggregate limit for students in 91视频’s graduate programs will be reduced from $138,500 (including undergraduate loans) to $100,000 (excluding undergraduate loans).
    • Students who enrolled in a graduate program and received Federal Direct Loans prior to July 1, 2026 may continue to borrow under the prior limits for up to three additional years or the remainder of their expected time to complete their program, whichever occurs first.

Beginning with the 2026-2027 academic year:

  • The Graduate PLUS Loan program will be eliminated.
    • Students who enrolled in and received Federal Direct Loans for a graduate program prior to July 1, 2026 may continue to borrow through the Grad PLUS Loan program for up to three years or the remainder of their聽expected time to complete your credential, whichever is shorter.
  • Parent PLUS Loans will have an annual limit of $20,000 and an aggregate limit of $65,000 per dependent student.
    • Students who enrolled in an undergraduate program prior to July 1, 2026 may continue to receive Parent PLUS loans under current limits if the student or parent previously received Federal Direct Loans for the same program.