One Big Beautiful Bill Changes
Changes to Federal Financial Aid
The One Big Beautiful Bill Act (OB3 or OBBBA), signed into law on July 4, 2025, introduces major reforms to federal student aid. Most changes take effect July 1, 2026. These changes affect multiple areas of federal financial aid such as Pell Grant, loan programs and repayment plans. All the information provided here is subject to change pending final regulatory text.
New Pell Eligibility Rules (starting 2026–27 FAFSA)
- Family farms, small businesses, and fisheries regain asset exemptions in the SAI formula.
- Students with foreign income must include it in AGI for Pell assessment.
- To remain Pell eligible the amount of scholarships and grants received must be less than the student’s cost of attendance.
- Students with a Student Aid Index higher than double the max Pell Grant are not eligible. For example, the 2026-27 maximum Pell is estimated to be $7,395, therefore the maximum SAI for Pell eligibility under the new rules would be $14,790, except under limited exemptions.
Changes to Loan Programs (starting 2026-2027)
Important: Beginning July 1, 2026, annual loan amounts will be adjusted based on the student’s percentage of full‑time enrollment.
For example, at ESU, full-time undergraduate enrollment is 12 credits per semester. If a first‑time, dependent freshman takes 12 credits in the fall and 6 in the spring (18 of the standard 24 annual credits), their annual loan eligibility is prorated to 75% of the $5,500 limit, resulting in new annual limit of $4,125.
For all the other changes to Loan Programs, select the situation that best fits you:
For information regarding changes to the repayment plans and options, go to Repayment Changes.