2026-2027 Financial Aid Updates

Important Financial Aid Updates

On July 4, 2025, what’s often referred to as the One Big Beautiful Bill Act (OBBBA) was signed into law.

The following information provides guidance on what has changed related to federal student aid programs. These regulations are scheduled to become effective on July 1, 2026.

This page will be updated as the U.S. Department of Education (ED) continues to finalize the rules regarding OBBBA and provides further guidance. ED has published One Big Beautiful Bill Act Updates regarding these changes.

If you need assistance with understanding the information below and how it will impact your financial aid, please contact the Financial Aid Office.

Undergraduate Students

Parent Plus Loan

Parent PLUS Loan Annual & Lifetime Limits
First-time Parent PLUS loan borrowers have new annual and lifetime loan limits.

Parents may borrow $20,000 per year per dependent student and a $65,000 lifetime limit per dependent student. A maximum of $20,000 is allowed for PLUS loans in one year per dependent student.

Legacy Provision: If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, and the student stays enrolled in the same program, the parent may continue using the current (higher) Parent PLUS loan limits for up to the shorter of either three academic years or the remaining length of the student’s program based on what they have already completed. Please note, a change of major does not necessarily mean the student changed programs. If a student doesn’t attend for a semester (not counting summer), the parent loses eligibility for this legacy provision.

Borrowing Examples – $20,000 annual maximum and $65,000 lifetime limit
Parent borrows $65,000 over four years equals $16,250 per year.

Parent borrows annual max of $20,000. $20,000 would be borrowed for years 1 through 3, and $5,000 for year 4.

Parent borrows annual max of $20,000 for the first two years and would have $12,500 remaining for year 3 and 4 each.

Parent borrows $65,000 over five years equals $13,000 per year.

Undergraduate Part-Time Students Annual Loan Limits

Effective with the 2026-27 academic year, student loan borrowers enrolled less than full-time will have their loan amount recalculated to reflect actual enrolled hours. Any classes that are dropped after disbursement in one semester will impact a subsequent loan amount in the same academic year. UWS’s next academic year includes Fall 2026, Spring 2027, and Summer 2027.

Changes to Pell Grant Availability

Effective with the 2026-27 academic year, students who have scholarships covering their full cost of attendance will be ineligible for Pell Grant if their total aid from other sources equals or exceeds their cost of attendance. Scholarships may need to be reduced in order to retain your Pell Grant eligibility.

An applicant with a Student Aid Index (SAI) equal to or greater than twice the maximum Federal Pell Grant award amount for the award year is ineligible for a Federal Pell Grant. This limit does not apply to students who qualify for a Federal Pell Grant under the Special Rule (dependents of certain deceased service members and public safety officers).

If you excluded foreign earned income from your tax return in accordance with U.S. tax law, that amount will be added back to the adjusted gross income (AGI) on the FAFSA form. It will be considered when when determining Federal Pell Grant eligibility.

Graduate Students

Grad Plus Loan

The Graduate PLUS Loan for graduate and professional students is being eliminated effective July 1, 2026 for new borrowers.

Legacy Provision: If a student is enrolled in the same program of study in 2026-27 as in 2025-26; and the student borrowed and received funds in the Direct Loan Program (Unsubsidized or Graduate PLUS) that was disbursed prior to July 1, 2026, they can continue to borrow Grad PLUS for up to the shorter of either three academic years or the remaining length of the student’s program based on what they have already completed. The student must maintain continuous enrollment in their program.

New Graduate Loan Limits

Effective with the 2026-27 academic year, full-time graduate students who are new borrowers may borrow up to $20,500 annually, with an aggregate limit of $100,000, excluding undergraduate borrowing.

Legacy Provision: Full-time graduate students who are under legacy provision will continue to be able to borrow up to $20,500 annually, with an aggregate limit of $138,500, including undergraduate borrowing. Students who lose legacy eligibility will have the same aggregate limits as new borrowers listed above. Students cannot choose which limit applies to them, as it is defined by the Department of Education (ED).

Professional Students (as currently defined by ED): New professional students, effective July 1, 2026, may borrow up to the cost of attendance or $50,000 per year (whichever is less) in unsubsidized loans, with an aggregate limit of $200,000, excluding undergraduate borrowing.

Starting July 1, 2026, the One Big Beautiful Bill Act (OB3) establishes a cumulative $257,500 lifetime limit on federal student loans. This cap includes all undergraduate, graduate, and professional borrowing, including Grad PLUS loans. Once a borrower reaches this limit, they are no longer eligible for additional Title IV loans, even if prior loans are repaid. For students who have lost legacy eligibility, the lifetime cap applies and includes all prior borrowing.

Graduate Part-Time Students Annual Loan Limits

Effective with the 2026-27 academic year, undergraduate and graduate student loan borrowers enrolled less than full-time will have loan amount recalculated to reflect enrolled hours. Any classes that are dropped after disbursement in one semester will impact a subsequent loan amount in the same academic year. UWS’s next academic year includes Fall 2026, Spring 2027, and Summer 2027.

Resources

Questions

If you need assistance with understanding the information above and how it will impact your financial aid, please contact the Financial Aid Office.