One Big Beautiful Bill Act and Financial Aid Impacts

• $20,000 per year per dependent student
• $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged)

• $20,500 per year for graduate students, with an aggregate limit of $100,000
• $50,000 per year for professional students, with an aggregate limit of $200,000

• Lifetime borrowing (across undergraduate and graduate education) is capped at $257,500 on all federal student loans except for Parent PLUS

• Graduate PLUS loans have been eliminated.
  There is a legacy provision for current borrowers (those who borrowed a Graduate PLUS loan before July 1, 2026 while enrolled in a credentialed program), who can borrow from the GradPLUS program for three academic years or the remainder of their program, whichever is less.

FAQ's: Current Students

1. Will the new law immediately affect my existing loans or aid? 

No. If you’re currently receiving aid at  Shippensburg University in the 2025-2026 financial aid year, your loans and grants remain under their present terms for now. Most changes including new loan limits and repayment options will apply starting in the 2026 - 2027 financial aid year. We are monitoring federal guidance and will update you as details are finalized.

2.  Do I qualify for the legacy provision?

If you are currently enrolled at Shippensburg University for the Spring 2026 or Summer 2026 term and received a disbursement of any Federal Direct Student Loan before July 1, 2026, then for the program you are currently enrolled in you qualify for legacy borrowing status for up to an additional 3 years or when you complete your program whichever is less.

3.  What happens if I take a Leave of Absence during my program?

After you return from your leave of absence, you will be considered a new borrower for federal Title IV aid and you will be subject to the new guidelines and limits as setup in the bill.

4.  Do I need to do anything right now?

No action is required right now. Your loans and financial aid continue under current rules for the 2025-2026 academic year. As changes begin to take effect, mostly starting in the 202 -2027 academic year, we’ll provide additional guidance.  Continue to review this page for additional information and guidance.

FAQ's: New Students

1.  Since the Direct Graduate PLUS loans will be eliminated for new borrowers,  what other loan options are available to me?

Federal Unsubsidized Loan: For those students who can complete the FAFSA, students will be able to receive a Federal Unsubsidized Loan to help cover costs of their education.

Private Educational Loans: These are offered by private lenders, banks, and credit unions. The terms can vary depending on the lender and normally require a credit check. It is important to compare interest rates, repayment terms, and borrower protection policies offered by each lender. 

2.  What if I plan to borrow federal loans for a future academic year and will not be enrolled full-time?

The new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026 - 2027 academic year. 

Beginning with the 2026–2027 aid year, federal student loan amounts will be reduced based on a student’s enrollment status. This change means that students enrolled less than full-time in a semester and/or academic year will no longer be eligible to borrow the full annual loan limit. Instead, the amount they may borrow will be reduced in proportion to their enrollment status.  This reduction applies to Federal Direct Loans, including Direct Subsidized, Direct Unsubsidized Loans, and Direct Graduate PLUS Loans.

What this means for students:

A student enrolled half-time (for example, 6 credits in fall and 6 credits in spring) may only be eligible to borrow 50% of the annual loan amount for that award year.  Also, if a student drops below full-time in a semester, future loans may be reduced.  This is why it is important for all students to check with Financial Aid before dropping any classes.

• A standard repayment plan with fixed monthly payments and fixed terms ranging from 10 to 25 years based on the amount borrowed.
• The new RAP plan.

• Eligible to enroll in the Standard, Income-Based (IBR), Graduated, and Extended repayment plans, or can opt into RAP.
• Those enrolled in the Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they well be moved to RAP.

• Now considered:
  • Foreign Income
    • Now included in the Adjust Gross Income used to calculate Pell Grant eligibility
• No longer considered:
  • Small businesses
    • Those with no more than 100 full-time employees that are owned and controlled by the family
  • Family-owned farms where the family resides
  • Family-owned commercial fisheries

• Students whose SAI exceeds twice the maximum Pell Grant award
  • The maximum Pell Grant is currently $7,395, meaning a student with an SAI of 14,790 or more is ineligible for the Pell Grant.

• Students receiving scholarships that cover the full cost of attendance