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One Big Beautiful Bill Act Impacts

Overview

The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025. It introduces major changes to federal student loans and repayment plans starting July 1, 2026. Stay informed about the big updates from the new law.

This information and related policies are subject to change as rulemaking continues, and more details are released by the Department of Education. We appreciate your patience as we continue to receive new information and additional details that will allow us to better assist you.

Federal Direct Loan Borrowing

Undergraduate Students

There are no changes to subsidized and unsubsidized loan annual limits or aggregate limits for dependent or independent undergraduates.

Parents

Parents of dependent undergraduate students who borrow a parent PLUS loan on or after July 1, 2026 may borrow up to $20,000 per year per student with an aggregate limit of up to $65,000 per student.

It’s important to note that these limits are combined limits — meaning if multiple parents apply for a PLUS loan for their student, the combined total for all PLUS loan borrowers cannot exceed $20,000 for the year or the $65,000 aggregate limit per student.

Under the legacy provision, parents of dependent undergraduates who have borrowed a parent PLUS loan or their student borrowed a subsidized or unsubsidized that disbursed before July 1, 2026, may be able to continue borrowing with no changes in eligibility of their annual limit for parent PLUS loans.

Graduate and Professional Students

The Federal Direct Graduate PLUS Loan is being eliminated beginning July 1, 2026.

Under the legacy provision, graduate or professional students who borrowed a Federal Direct Loan, including parent and graduate PLUS loans, that disbursed before July 1, 2026 may still be able to apply for and/or to continue borrowing a graduate PLUS loan with no changes in eligibility of their graduate PLUS annual loan limits.

The aggregate limit for graduate and professional students does not include undergraduate borrowing.

Graduate Students

Graduate students who borrow an unsubsidized loan on or after July 1, 2026 may be able to borrow up to $20,500 annually with a graduate aggregate limit of up to $100,000.

Professional Students

For loan eligibility, professional programs at WVU are Dentistry (8007), MD (8342), Pharmacy (8950), and Law (7742).

Students in professional programs may be able to borrow up to $50,000 annually with a professional aggregate limit of up to $200,000.

Under the legacy provision, students who have borrowed a Federal Direct Loan that disbursed before July 1, 2026, may be able to continue borrowing with no changes in eligibility to their annual limit for an unsubsidized loan. Professional students who qualify for the legacy provisions are not eligible for the revised unsubsidized loan limits.

Other Loan Changes

Annual loan amounts will be adjusted based on actual enrollment (if less than full-time in degree-pursuant coursework) for both undergraduate and graduate/professional students. This may result in a reduction of federal loan eligibility for a student enrolled less than full-time for the academic year. More information on this change is not yet available.

OBBB sets the aggregate borrowing limit on all federal student loans (excluding parent PLUS loans borrowed on a student’s behalf) to $257,500 ($57,500 as an undergraduate student).

Legacy Provision for Loan Eligibility

To qualify under the legacy provision rules built into OBBB, a student and/or parent must be a federal direct loan borrower of a loan that disbursed before July 1, 2026.

Additionally, the student must remain continuously enrolled in the same program at the same school . If a student changes programs or withdraws, the student and/or parent borrower will be subject to the new annual and aggregate limits outlined in OBBB.

  • An undergraduate student in an associate program who changes to a bachelor’s program would be subject to the new regulations outlined in OBBB.
  • An undergraduate student in a bachelor’s program may change majors and still be considered in the same academic program, as long as the student is at the same school and maintains continuous enrollment.
  • A graduate student who changes majors would lose their legacy eligibility and be subject to the new annual and aggregate limits outlined in OBBB.

Legacy eligibility under these rules extends for up to 3 academic years or until the current degree is completed — whichever comes first. Qualified students and parents may not opt out of the legacy provision.

Free Application for Federal Student Aid (FAFSA) Changes

Beginning with the 2026-2027 FAFSA, there are changes to the FAFSA Asset Exemptions.

Families do not need to report the following as assets if there are 100 or fewer full-time equivalent employees:

  • Value of family farms (where family resides)
  • Small businesses
  • Family-owned commercial fisheries and expenses owned and controlled by a family

Pell Grant Eligibility

Beginning with the 2026-2027 FAFSA, there are changes to Pell Grant Eligibility:

  • Any student with a Student Aid Index (SAI) as determined by the FAFSA that is more than twice the max Pell Grant amount is ineligible for the grant.
  • Students whose cost of attendance is covered in full by other scholarships/grants are not eligible for the Pell Grant.

Changes in Repayment Plan Options

OBBB outlined changes to repayment options for Federal Direct Loan borrowers, including the creation of a new income-based plan called the Repayment Assistance Plan (RAP). Keep up to date about changes to these repayment options on Federal Student Aid’s One Big Beautiful Bill Act Updates website.

West Virginia University has teamed up with ECMC Solutions to provide current and former students with Federal Direct Loans management assistance and resources free of charge.