One Big Beautiful Bill Act
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced significant updates to Federal Student Aid programs. The information below outlines the key changes that may impact your financial aid. These changes take effect for the 2026–2027 academic year. However, there are some legacy provisions in place for current borrowers, as outlined below.
While we do not yet have all the details on how these changes will be implemented, we are closely following updates from the Department of Education and will continue to update this webpage as more information becomes available.
Summary of Changes
-
Pell Grants
- Students whose grants and scholarships fully cover their Cost of Attendance will no longer be eligible to receive a Pell Grant.
- Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant award amount will not be eligible to receive a Pell Grant.
-
Student Aid Index/FAFSA Formula
- Families are no longer required to report the net worth of a family farm or a family-owned small business as an asset on the FAFSA.
-
Undergraduate Loans
- The annual Parent PLUS loan limit is now capped at $20,000 per student for all parent borrowers.
- The aggregate (lifetime) Parent PLUS loan limit is now capped at $65,000 per student for all parent borrowers.
- The annual Federal Direct Loan amounts will be prorated based on enrollment status, in direct proportion to the percentage of full-time enrollment.
-
Graduate Loans
- The annual Federal Direct Loan limit is set at $20,500 for most graduate students and $50,000 for professional programs, and will be prorated based on enrollment status in direct proportion to the percentage of full-time enrollment.
- The aggregate Federal Direct Loan limit is $100,000 for graduate programs, and $200,000 for professional programs, not including undergraduate borrowing.
- The Graduate PLUS Loan Program has been eliminated.
- A new lifetime borrowing limit of $257,500 applies to all Federal Student Loans, including undergraduate and graduate borrowing.
-
Grandfathering for Current Borrowers
As of June 30, 2026, students enrolled in a program of study that have received a
loan for the applicable program of study will be eligible for a limited loan limit exception period –
grandfathering.New loan limits will not apply for the lesser of:
- Three academic years OR
- The difference between the total length of the program enrolled and the period of the program already completed.
Once grandfathering is broken, students or parents are subject to the new loan limits.
FAQ
Students who begin a new program on or after July 1, 2026 will be subject to the new federal student loan provisions.
If you were enrolled in your current program prior to July 1, 2026, have already received federal student loans for that program, and have not exceeded the program’s published length, you may qualify for “grandfathering” provisions.
Under these provisions, you may continue to borrow under the old loan limits ans system for up to three additional academic years, or for the remaining length of your program (based on the difference between the total published program length and the time you have already completed), whichever is shorter.
If at at any point, you no longer qualify under the grandfathering provisions, you will be subject to the new loan limits.
Yes. Parent PLUS Loans will continue to be available.
If you were enrolled in your current program prior to July 1, 2026, and you or your parent has already received a federal loan for that program, you may qualify for “grandfathering” provisions.
Under these provisions, your parent may continue borrowing Parent PLUS Loans on your behalf for up to three additional academic years, or for the remaining length of your program (based on the difference between the program’s total published length and the time you have already completed), whichever is shorter.
If you are starting a new program on or after July 1, 2026, your parents may still borrow Parent PLUS Loans, but the loans will be subject to the new borrowing limits of $20,000 per year and $65,000 total.
Yes - possibly. If you were enrolled in your current program prior to July 1, 2026, have already received federal student loans for that program, and have not exceeded the program’s published length, you may qualify for “grandfathering” provisions.
Under these provisions, you may continue to borrow Grad PLUS Loans for up to three additional academic years, or for the remaining length of your program (based on the difference between the total published program length and the time you have already completed), whichever is shorter.
Yes - possibly. If you were enrolled in your current program prior to July 1, 2026, have already received any type of federal student loans for that program, and have not exceeded the program’s published length, you may qualify for “grandfathering” provisions.
Under these provisions, you may continue to borrow Grad PLUS Loans for up to three additional academic years, or for the remaining length of your program (based on the difference between the total published program length and the time you have already completed), whichever is shorter.
No. You must be continuously enrolled in the same program you were enrolled in prior to July 1, 2026 to qualify for the grandfathering provisions.
According to the Department of Education's definition of professional programs, the following will be considered "professional" for federal Direct Loan limit purposes:
-
Doctor of Psychology (PsyD)
-
Master of Divinity (MDiv)
All other graduate programs at George Fox are considered standard graduate programs for federal Direct Loan limit purposes.
If you are enrolled less than full-time, the amount of your Federal Direct Loans may be reduced (prorated) based on your actual enrollment level each term.
This means you may not receive the full annual loan amount shown on your award. Instead, your loan will be adjusted to reflect the number of credits you are taking during that term.