One Big Beautiful Bill Act (H.R.1)
What Stan State Students Need to Know
A new federal law, the One Big Beautiful Bill Act (H.R.1), was signed on July 4, 2025. It changes federal student loan rules starting July 1, 2026 (the 2026–27 aid year). Some federal guidance is still being finalized, but here’s what we know right now — and how it may affect you.
Beginning July 1, 2026:
- Grad PLUS loans will be eliminated for new borrowing
- Graduate loan limits: $20,500 per year, $100,000 total (not including undergrad loans)
- Professional loan limits (for programs like Pharm.D., D.D.S., etc.): $50,000 per year, $200,000 total (not including undergrad loans)
- Parent PLUS limits: $20,000 per year per student, $65,000 total per student
- New overall lifetime federal loan cap: $257,500 (excluding Parent PLUS)
- Part-time enrollment may reduce your loan eligibility
- Federal repayment options may change over time
We want to keep you informed about upcoming federal financial aid changes under the One Big Beautiful Bill Act (H.R.1). Most changes for undergraduate students will begin with enrollment on or after July 1, 2026 (the 2026–27 academic year), so they will not affect your current 2025-26 academic year.
What’s changing (and what it may mean for you):
- Pell Grant: Eligibility and award amounts may change.
- Enrollment & loans: If you take fewer than full-time units, your federal Direct Loan amount may be reduced based on your enrollment level.
- Parent PLUS Loans: Starting July 1, 2026, Parent PLUS Loans will have borrowing limits instead of covering the full cost of attendance. Families may need to plan for additional costs.
What you can do now:
- Plan your schedule early—enrolling full-time helps you receive full-time aid.
- If your family may use a Parent PLUS Loan, start planning ahead and explore backup options if needed.
For an overview of the changes, FAQs, and planning tips, visit: Federal Student Aid Updates.
If you have questions after reviewing the information, please contact the Stanislaus State Financial Aid & Scholarship Office. We’re here to help!
We want to keep you informed about upcoming federal financial aid changes under the One Big Beautiful Bill Act (H.R.1)
Although the law was signed in July 2025, the changes affecting students will not take effect until July 1, 2026, and will not impact the current 2025-26 academic year.
For credential students, updates include changes to Pell Grant eligibility, new limits on Parent PLUS loans, and how enrollment status (full-time vs. less than full-time) may affect annual Direct Loan eligibility.
There’s nothing you need to do right now. We’re sharing this information early so you have time to plan ahead and ask questions.
The CSU Chancellor’s Office has created a centralized webpage with an overview of the changes, FAQs, and planning resources: Federal Student Aid Updates.
If you have questions after reviewing the information, please contact the Stanislaus State Financial Aid & Scholarship Office. We’re here to help!
We want to keep you informed about upcoming federal financial aid changes under the One Big Beautiful Bill Act (H.R.1). Most changes will begin with enrollment starting July 1, 2026 (the 2026–27 academic year), so they will not affect your current aid.
What’s changing (and how it may affect you):
- Graduate PLUS Loans: Ending for new borrowers starting in 2026–27, which may impact how you cover remaining costs
- Loan limits: New annual and lifetime federal loan limits may affect how much you can borrow over your program
- Enrollment matters: If you enroll in fewer than full-time units, your Direct Loan amount may be reduced based on your unit load
What you can do now:
- Confirm your planned unit load
- If you planned to use Grad PLUS, review your budget early
- Explore campus resources like budgeting tools, scholarships, and payment plans if you expect a gap in funding
For an overview of the changes, FAQs, and planning tips, visit: Federal Student Aid Updates.
Possibly.
If you borrowed federal loans before July 1, 2026 and stay in the same degree program, you may qualify for a temporary “legacy” rule. This could allow you to keep borrowing under current limits for:
- Up to three academic years, or
- Until you finish your current degree (whichever comes first)
If you change majors, begin a new degree, or stop attending, the new rules would likely apply immediately.
Because eligibility depends on your personal situation, check with the Financial Aid Office for guidance.
If you’re newly admitted — including transfer students or students starting a new degree — the new loan rules will apply to you right away.
Your unit load (full-time vs. part-time) can affect your financial aid.
Taking fewer units may:
- Reduce your loan eligibility
- Impact some grants or scholarships
Before dropping a class, contact Financial Aid so you understand how it could affect your aid package.
Parent PLUS loans will have new annual and lifetime limits beginning in 2026–27. Plan early if your family intends to use this option.
Grad PLUS loans will no longer be available for new borrowing. Graduate and professional students should review updated loan limits and plan ahead.
- Check your financial aid portal regularly
- Complete all required “To Do List” items
- Plan your course load carefully
- Think ahead about total borrowing
- Explore payment plans, scholarships, and budgeting tools if needed
Most importantly — reach out to the Stan State Financial Aid & Scholarship Office with questions. We’re here to help you plan and stay informed.
Updated: March 27, 2026