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: Repayment Changes.

For more information about student enrollment status: Student Status for Aid Enrollment and Re-Enrollment - Emporia State University.

Frequently Asked Questions

Is Graduate PLUS loan included in the Lifetime Loan Limit?

Yes. All federal student loans, including Graduate PLUS loans, count toward a student’s Lifetime Loan Limit, regardless of whether the loans were repaid, forgiven, canceled, or otherwise discharged.

The only exception is Parent PLUS loan, which does not count toward the student’s Lifetime Loan Limit.

How does withdrawing from classes affect my enrollment status for federal loan eligibility?

Withdrawn courses do not count as completed credit hours for the term and are excluded when calculating enrollment status for federal loan eligibility.

Example:

The minimum enrollment for full-time undergraduate students during the academic year is 24 credit hours.

An undergraduate dependent senior enrolls in:

Fall 2026: 12 credit hours
Spring 2027: 12 credit hours

Calculation:

(12+12)/24 = 1 = 100%

The student is considered full-time, and no reduction to annual loan limits is required.

Full-time annual loan limits:

Subsidized Loan: $5,500
Unsubsidized Loan: $2,000

If the same student withdraws from one 3-credit-hour course in Fall 2026, their fall enrollment drops to 9 credit hours.

Updated calculation:

(9+12)/24 = 0.875 = 87.5%

Revised annual loan limits based on enrollment:

Subsidized loan: $5,500 x 87.5% = $4,812
Unsubsidized loan: $2,000 x 87.5% = $1,750

How does my summer enrollment affect my loan eligibility?

Since the summer term is not mandatory for ESU students, summer credit hours are not included in the denominator of the annual enrollment calculation. The full-time requirement remains 24 credit hours.

However, summer credit hours are added to the numerator and can improve enrollment status when determining loan eligibility for the aid year.

Example:

An undergraduate dependent senior enrolls in:

Fall 2026: 6 credit hours
Spring 2027: 12 credit hours

Calculation:

(6+12)/24 = 0.75 = 75%

Annual loan limits based on enrollment:

Subsidized loan: $5,500 * 75% = $4,125
Unsubsidized loan: $2,000 * 75% = $1,500

The student then adds 6 credit hours for the Summer 2026.

(6+6+12)/24 = 1 = 100%

The student is now considered full-time, and no reduction in annual loan limits is required.