On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, and included several changes related to federal student aid programs. While many of these changes are still working through the finalization process within the Department of Education (ED), these regulations are scheduled to become effective July 1, 2026.
The following changes are the most relevant to Pine students and do not constitute a complete list of all changes within OBBBA. Please contact the Financial Aid office for additional information on how any of these changes may impact your specific circumstances.
Historically, students have been able to borrow their full annual loan limit as long as they were enrolled at least half-time per term.
Beginning with the 2026-2027 academic year, loan availability will be reduced based on the number of credits a student is enrolled in.
EXAMPLES
Schools will be required to reduce loan amounts in direct proportion to a student’s enrollment if they are enrolled less than full-time.
If a student drops or withdraws from a course at any point in the term and their enrollment drops below full-time, the school will be required to reduce their loan amounts. The timing of the reduction will be at the school’s discretion. *This could result in a balance owed to the school.
Parents who borrowed Parent PLUS loans for their dependent student before July 1, 2026, may be considered legacy borrowers. Legacy borrowers may continue borrowing Parent PLUS loans for that student for up to three years with no limits other than the student’s Cost of Attendance (COA), as long as the student maintains concurrent enrollment.
If the student withdraws from a semester or does not attend a semester, they are no longer considered a legacy student.
Note: If a student transfers to a different school, an articulation agreement will be needed to maintain legacy student status.
The annual Parent PLUS loan limit per student will be $20,000. This is a student limit, not a parent limit. This means a second parent cannot borrow additional Parent PLUS loans for the student once the $20,000 annual limit has been reached.
A parent may borrow the difference between the student’s Cost of Attendance (COA) budget and the student’s other financial aid, as long as the amount does not exceed the $20,000 limit.
The aggregate Parent PLUS loan limit per student will be $65,000.
Beginning with the 2026-2027 academic year, a student will not receive Pell Grant funds if their grants and scholarships from non-federal sources meet or exceed their Cost of Attendance (COA) budget. These sources include institutional, state, and private scholarships or grants.
For example, if a student has a $10,000 Cost of Attendance and qualifies for Pell Grant based on financial need, but receives $10,000 or more from state grants, institutional scholarships, and other private scholarships, they will not receive the Pell Grant.
What is Cost of Attendance?
The Cost of Attendance (COA) is the estimated expense to attend school. It includes direct costs billed to the student’s school account, such as tuition and fees, and indirect costs not billed to the student’s school account, such as transportation and housing.
The COA is used as a budget for financial aid calculations and may vary based on a student’s enrollment.
(Unrelated to OBBBA, but a change for 26-27)
June 1, 2026 is the deadline for the 2026-27 FAFSA to be considered for the North Star Promise Scholarship for the 2026-2027 school year (Fall 2026, Spring 2027, Summer 2027).