Skip to main content

University of North Alabama

APPLY! REQUEST GIVE!

One Big Beautiful Bill Act

 

Federal Aid changes from the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025. This legislation contains provisions that reshape student financial aid, including significant changes to the federal student loan program, most of which become effective for periods of enrollment beginning on or after July 1, 2026. Changes include new loan limits, elimination of the Federal Graduate PLUS loan, and loan proration for students enrolled less than full-time. The Student Financial Aid Office is monitoring these changes and implementation. This information may change as more details become available. This page will be revised as new information becomes available.

Under the One Big Beautiful Bill, a “new borrower” is generally defined as a student who did not borrow any type of Federal Direct Loan ( Subsidized, Unsubsidized, or PLUS) for a specific program of study at the institution they are attending before July 1, 2026.

 

Undergraduate Students

The annual Federal Direct Student loan limit remains unchanged. Total: $31,000 (dependent) or $57,500 (independent). U.S. Department of Education: Federal Loan Amount Limits.

Federal Direct Parent PLUS Loan

New borrowers will be capped at $20,000 per dependent student each year with a maximum lifetime limit of $65,000 per dependent student.

Legacy Provision: If a borrower has a Parent PLUS Loan made before July 1, 2026 while the dependent student is enrolled in a credential program, the parent can continue to borrow under current loan limits for 3 academic years for the remainder of their dependent student’s expected time to credential, whichever is less.

 

Federal Pell Grant

Full Cost of Attendance Scholarships/Grants: Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

 

Graduate Students

Federal Direct Unsubsidized Student Loan: The annual federal Direct Unsubsidized loan limit remains $20,500 for graduate students. A new aggregate limit of $100,000 (excluding undergraduate loans) has been established. The previous aggregate limit was $138,500, including undergraduate loans.

Legacy Provision: The law allows a time-limited exception for currently-enrolled students if:

  • they remain enrolled in the same program of study as they were enrolled in June 30, 2026
  • the student had a direct loan disbursed for that same program before July 1, 2026
  • students who meet the above requirements can continue borrowing without being subject to the new Direct Unsubsidized aggregate and lifetime borrowing limits under this limited exception through their time to completion, for a maximum of three academic years. 

Federal Direct Graduate PLUS Loans: Starting July 1, 2026, the Graduate PLUS loan program will be eliminated for new borrowers.

Legacy Provision:  The law allows a time-limited exception for currently-enrolled students if:

  • they remain enrolled in the same program of study as they were enrolled in June 30, 2026
  • the student had any direct loan (subsidized, unsubsidized, or PLUS) disbursed for that same program before July 1, 2026
  • students who meet the above requirements can continue borrowing from the Graduate PLUS program without being subject to the new Direct Unsubsidized aggregate and lifetime borrowing limits under this limited exception through their time to completion, for a maximum of three academic years.

 

All Students

Loan Reductions for Less Than Full Time Enrollment:

  • Students enrolled less than full-time will have their federal loans prorated to match their enrollment.  This applies to students enrolled in Undergraduate and Graduate programs who borrow any type of Federal Direct Student Loan and are not enrolled full-time (Full-time enrollment at UNA is considered 12 undergraduate credits per semester for Undergraduate students and 9 graduate credit hours per semester for Graduate students.)
  • We are still waiting for guidance from the US Department of Education to see if the rule applies to the entire school year or a semester-by-semester basis.

Lifetime Loan Limit:

All students have a new lifetime maximum of $257,500 for all federal student loans combined, excluding PLUS Loans.

Repayment Options:

Major overhaul to the student loan repayment system:    

  • Repayment options will be streamlined into only two plans: a new tiered standard repayment plan and a new income-driven repayment plan, called the Repayment Assistance Plan.
  • Existing income-contingent repayment plans will sunset in 2028.

For more information regarding loan payments, contact your loan servicer by logging into your account at studentaid.gov.