The One Big Beautiful Bill Act (OBBBA or OB3) includes changes to federal student aid that are scheduled to begin on July 1, 2026. Some of these changes may affect students and families at Texas A&M University.

This page reflects what we know right now and will be updated as more federal guidance becomes available.

What we know right now

• Some federal student aid rules are expected to change beginning July 1, 2026. 
• Some changes may affect the 2026-27 academic year. 
• Final federal guidance is still developing.

Who may be affected

This page may especially helpful for:

• Current borrowers who may qualify for legacy provisions
• Students enrolled less than full time
• Graduate and professional students
• Parents considering a Parent PLUS Loan
• Students who plan to borrow federal loans
• Students who receive Pell Grant

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Key Changes Effective July 1, 2026

Legacy provisions

• Legacy provisions are temporary rules for some current borrowers. 
• These rules are meant to reduce disruption for students and parents who are already borrowing or are already partway through a program when the new rules begin. 
• In general, eligibility may depend on:
  • prior borrowing of a Federal Direct Loan during the 2025-2026 academic year, and
  • continuous enrollment and staying in the same academic program.
• Legacy provisions may apply for up to three years or until the student completes the program, whichever comes first.

Loan amounts for students enrolled less than full time

• Beginning in the 2026-27 academic year, federal loan amounts may be adjusted based on enrollment level.
• Half-time enrollment will still be required for federal loans.
• More information will be added as more guidance becomes available.

Graduate PLUS Loans

• The Graduate PLUS Loan program is expected to end for new borrowers beginning July 1, 2026.
• Current borrowers who qualify for legacy provisions may be able to continue borrowing for up to three years or until the student completes the program, whichever comes first.
• Students who may be affected should plan ahead and review future borrowing options.

Graduate and professional unsubsidized loans

• Graduate students are expected to have new annual and lifetime unsubsidized loan limits as follows:
  • $20,500 per academic year/$100,000 limit for total graduate loans.
• Professional students are expected to have annual and lifetime unsubsidized loan limits as follows:
  • $50,000 per academic year/$200,000 limit for total graduate and professional loans combined.
• Loans for undergraduate programs do not count towards the limits stated above.
• Lifetime limits for all federal subsidized and unsubsidized loans, including undergraduate loans, and Graduate PLUS loans is $257,500.
• Current borrowers who qualify for legacy provisions may be able to continue borrowing for up to three years or until the student completes the program, whichever comes first.

Parent PLUS Loans

• New borrowers beginning July 1, 2026, may be subject to annual and lifetime borrowing limits as follows:
  • $20,000 per academic year/$65,000 lifetime limit per dependent student.
• Current borrowers who qualify for legacy provisions may be able to continue under previous rules for up to three years or until the student completes the program, whichever comes first.
• Parents with questions about borrowing should review official updates or contact Aggie One Stop.

Repayment changes for future borrowers

• Students who borrow a new Federal Direct loan on or after July 1, 2026, may have different repayment options than earlier borrowers.
• Based on current guidance, new borrowers may be limited to the following repayment options:
  • Tiered Standard Repayment Plan: Fixed monthly payments over a term of 10 to 25 years
  • Repayment Assistance Plan: Income-based repayment plan offering loan forgiveness after 30 years of payments and qualifies for Public Service Loan Forgiveness
• Borrowers with loans from before July 1, 2026, may still be able to access current repayment options. 

Pell Grant

• Pell Grant eligibility may change for some students beginning with the 2026-27 academic year.
• Based on current guidance, students who receive non-federal grants or scholarships that cover their full cost of attendance are no longer eligible for the Pell Grant.
• Scholarships & Financial Aid will make adjustments as needed to other aid on the account to maintain a student's Pell eligibility.
• Students who may be impacted may contact Aggie One Stop for individualized advising.

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Important Note

Final regulations and additional federal guidance may change timelines, eligibility details and implementation.