Recent Legislation Impact

Impact of Recent Legislation on Financial Aid

The One Big Beautiful Bill Act (H.R.1) was signed into law by President Trump on July 4, 2025. This landmark legislation introduces significant changes to federal student aid programs under Title IV.

This page is a developing resource designed to keep students, families, and the William & Mary community informed as details emerge. Our goal is to provide clear, timely updates to help you understand and prepare for the upcoming changes.

The new provisions will affect all types of students—current and prospective, undergraduate and graduate—with implementation scheduled for July 1, 2026. While some aspects of the law are already defined, others will require additional clarification from the U.S. Department of Education. As official guidance becomes available, we will continue to update and expand this page to ensure you have the most accurate and actionable information possible.

One Big Beautiful Impact

Resources

Full Legislation Text

Department of Education Updates

A Brief Overview of OBBBA Loan Impacts - NASFAA (National Association of Student Financial Aid Administrators)

Federal Loan Program Lifetime Loan Limits

Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the expected remainder of their expected time to credential, whichever is less.

loan limits
Borrower Type	Lifetime Loan Limit
New Borrowers as of 7/1/2026	$257,500 combined borrowing (undergraduate, master's, doctorate)
Legacy Borrowers	$138,500 for undergraduate & graduate subsidized/unsubsidized

Federal Parent PLUS Loans

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

It may be possible for a parent to be both a legacy borrower and fall under the new borrower limits, as the legacy provision is tied to the student the parent is borrowing for. We expect greater guidance as negotiated rulemaking is ongoing.

Parent PLUS changes to loan limits
Borrower Type	Yearly Loan Limits	Aggregate Loan Limits
New Borrowers as of 7/1/2026	$20,000 per year per dependent student	$65,000 per dependent student
Legacy Borrowers	up to the student's Cost of Attendance	based on parent credit approval

Federal Graduate PLUS Loan

Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow from the GradPLUS program for 3 academic years or the expected remainder of their expected time to credential, whichever is less.

Graduate PLUS changes to Loan Limits
Borrower Type	Yearly Loan Limits	Aggregate Loan Limits
New Borrowers as of 7/1/2026	$0 - One Big Beautiful Bill Act eliminates the Graduate PLUS program	$0
Legacy Borrowers	up to the student's Cost of Attendance	based on student credit approval

Federal Graduate Loans

Graduate Federal Loan
Borrower Type	Yearly Loan Limits	Aggregate Loan Limits
New Borrowers as of 7/1/2026	$20,500 for graduate students $50,000 for professional* graduate students	$100,000 for graduate students $200,000 for professional* graduate students
Legacy Borrowers	$20,500 for all graduate-level students	$138,500 for all graduate-level students

*A professional student is a student enrolled in a program of study that awards
a professional degree, as defined under section 34 CFR 668.2. Examples of a
professional degrees include but are not limited to Pharmacy (Pharm.D.), Dentistry
(D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law
(L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.),
Podiatry (D.P.M., D.P., or Pod.D.), and Theology (M.Div., or M.H.L.).

Loan Proration

Requires institutions to prorate annual loan amounts in direct proportion to the percent of
full-time status in which the student is enrolled. There is no date of implementation set in the One Big Beautiful Bill Act.

Example: If a student is enrolled half-time for the fall and spring semesters, and their annual loan eligibility is $7,500 ($3,750 for each term). With a 50% enrollment, each semester the student would be eligible to borrow only $1,875 each semester.

Pell Grant Eligibility Changes

There are no legacy provisions, and changes are all set to be implemented on July 1, 2026.

Pell Changes
Area of Impact	Change Explanation
Foreign Income	Requires that foreign income be included in the AGI used to calculate Pell Grant eligibility.
High SAI Provision	Students with an SAI greater than twice the maximum Pell Grant award will not be eligible for a Pell Grant.
Full Cost of Attendance Scholarships/Grants	Students who receive grants or scholarships from non-federal sources that cover their entire Cost of Attendance are ineligible to receive a Pell Grant, even if otherwise eligible for the program.