Federal Student Aid Changes for 2026-2027

Important Updates

The One Big Beautiful Bill Act (OBBBA - Full Text) was signed into law on July 4, 2025, and makes significant changes to federal financial aid programs, including new loan limits, new loan repayment options, and updated eligibility requirements, for both current and future students.  Some of these changes went into effect immediately, while others will go into effect in Summer 2026 and beyond.

For the most up-to-date information, please visit Federal Student Aid's dedicated OBBBA page.

Summary of Changes for Undergraduate Students

• Parent PLUS loans will be limited to $20,000 a year per student.
• Parent PLUS loan borrowers will have a new overall borrowing limit of $65,000 per student.
• Loan eligibility is impacted by hours of enrollment. Full-time students may borrow up to their full loan eligibility (100%), but any student enrolled less than full-time will have loans reduced based on their percentage of full-time enrollment. Full-time for undergraduate students is defined as 12 credit hours or more per semester.
• Students with an SAI that is equal to or greater than twice the amount of the maximum Pell Grant award will no longer be eligible for the Pell Grant during that aid year.
• Students who receive scholarships or grants that cover their total cost of attendance (COA) will lose Pell grant eligibility for that aid year.

Summary of Changes for Graduate Students

• The Graduate PLUS loan has been eliminated and will no longer be available to new graduate students and/or new Direct Loan borrowers beginning in 2026-2027.
• Direct Unsubsidized borrowing limits remain at $20,500 annually, with a new lifetime maximum of $100,000 per non-professional student (previously $138,500).
• Loan eligibility is impacted by hours of enrollment. Full-time students may borrow up to their full loan eligibility (100%), but any student enrolled less than full-time will have loans reduced based on their percentage of full-time enrollment. Full-time for graduate students is defined as 9 credit hours or more per semester.
• The maximum lifetime aggregate per student borrower will be $257,500; note, this amount includes Subsidized, Unsubsidized, and Graduate PLUS Loans.

Summary of Changes for Professional Students

• The Graduate PLUS loan has been eliminated and will no longer be available to new professional students and/or new Direct Loan borrowers beginning in 2026-2027.
• Direct Unsubsidized borrowing limits will be $50,000 annually with a new lifetime maximum of $200,000 per professional student. As of June 1, 2026, professional programs at Cleveland State are as follows (defined by the Department of Education):
  • Law (J.D. only)
• Loan eligibility is impacted by hours of enrollment. Full-time students may borrow up to their full loan eligibility (100%), but any student enrolled less than full-time will have loans reduced based on their percentage of full-time enrollment. Full-time for Law students is defined as 13 credit hours per semester.
• The maximum lifetime aggregate per student borrower will be $257,500; note, this amount includes Subsidized, Unsubsidized, and Graduate PLUS Loans.

Interim Exception

Borrowers who have received a loan for a program that began prior to June 30, 2026, and in which they will remain enrolled in 26-27, will be exempt from the above borrowing caps and loan program changes for the lesser of:

• three academic years OR
• the difference between the published length of the program of study (the expected time to credential) you (or the child you’re borrowing for) are enrolled in and the period of time you (or your child) have completed in that program.

A student is considered “enrolled in a program of study” if they are a degree-seeking student in good academic standing who has not graduated or officially withdrawn from a semester (Summer enrollment is optional).  While there is no minimum credit enrollment requirement to retain this exception, students must have remaining eligibility within their expected time to credential. Note, you must be enrolled in at least 6 credit hours to receive a Direct Loan.

Students are not permitted to “opt out” of the interim exception so that they may receive the new annual loan limits or for any other reason.