Federal Financial Aid Changes for Undergraduate Students

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The bulk of the One Big Beautiful Bill Act (OBBBA) modifications to all undergraduate students include eligibility changes to Pell Grant awards, federal student loan proration implementation, and loan limit changes for Parent Plus loans. 

 

Changes to Federal Pell Grant Eligibility

Starting with the 2026–27 academic year new rules change who qualifies for a Pell Grant.

New Eligibility Limit.

• Students with a Student Aid Index (SAI) above $14,790 are no longer eligible for a Pell Grant.

Special Rule Exception.

• This new limit does NOT apply to students who qualify under the Special Rule. This refers to dependents of certain deceased service members or public safety officers. For example, a dependent of a fallen service member or public safety officer. Contact our financial aid office to learn more.

Students With Outside Scholarships.

• If you receive grants or scholarships from non-federal sources that cover your total Cost of Attendance (COA), you will not be eligible for a Pell Grant, even if otherwise eligible for the program.

 

How Your Enrollment Affects Your Loan Amount

Starting with the 2026-27 academic year new rules change loan amount eligibility.

Minimum Enrollment Requirement

• To qualify for federal student loans, you must still be enrolled in at least 6 credit hours per semester (half-time enrollment).




How to Maximize Your Loan Eligibility

• The simplest way to receive your full loan eligibility is to enroll in at least 12 credit hours each semester. If you do, there is no proration. You will receive 100% of your annual eligibility split equally between fall and spring.

 

Enrollment & Loan Proration Chart

Example: A full-time student enrolled in 12 or more credit hours receives 50% of their annual loan limit in the fall semester and 50% in the spring, for a total of 100%.

Enrollment Status	Credit Hours	Percentage of Annual Loan Limit
Full Time	12+	50%
Three-Quarter Time	9–11	37.5% – 45.83%
Half Time	6–8	25% – 33.33%
Less Than Half Time	1–5	Not Eligible

 

If you have additional questions regarding your financial aid eligibility, please contact Student Financial Services.

Email us
Call 314-529-9360

 

Changes to Federal Student Loan Limits

How Much Can You Borrow Annually (Each Year)?

• The annual subsidized and unsubsidized loan limits for all undergraduate students remain the same.

 

What is the Lifetime Borrowing Limit?

New Students (Starting 2026–2027)

• If you are a new student starting in the 2026–2027 academic year or later, your total federal loan limit across all programs is $257,500.
• This limit applies to the total amount you have outstanding, meaning the balance you still owe, not the total you have ever borrowed. It covers Direct Subsidized Loans, Direct Unsubsidized Loans, and Grad Plus Loans.
• Parent PLUS Loans do not count toward this limit.

Current and Continuing Students

• If you are already enrolled or have previously taken out federal loans, the rules have not changed for you. Your total limit remains $138,500, not including any Parent PLUS Loans borrowed on your behalf.
• These lifetime limits apply regardless of any loan forgiveness, repayment, cancellation, or discharge. Even if a loan was previously forgiven, it still counts toward the $65,000 lifetime cap.

 

Parent PLUS Loans

• Starting with the 2026–2027 academic year, new limits apply to Parent PLUS Loans. These loans are borrowed by parents on behalf of their dependent undergraduate students.

 

• Begin a program after July 1, 2026
  • Parents can borrow up to $20,000 per year for each dependent student.
  • The total lifetime limit is $65,000 per dependent student (regardless of forgiveness, repayment, cancellation, or discharge).
• Enrolled in a program before July 1, 2026
  • Parents can continue to borrow under the Parent PLUS program up to the Cost of Attendance (for up to three academic years or the remainder of their program length, whichever is less) if they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026 and for whom a Direct Loan was made for that program of study prior to July 1, 2026.

 

Not sure if you meet the requirements for the legacy provisions?

Reach out to the student financial services team and they will be able to identify which students qualify based on information stored within federal databases.

 

 

Frequently Asked Questions

Our office is here to support and educate on how to navigate and fund their educational journey. We are committed to providing support to Saints and their families throughout this transition. If you don’t see your question here, our admissions and financial aid teams are always happy to help guide you through your specific situation, please don’t hesitate to reach out . We are happy to help!

• Will the new law immediately affect my existing loans or aid?

  No. If you’re currently receiving aid or are in repayment, your loans and grants remain under their present terms for now. Most changes—including new loan limits and repayment options—will apply starting in the 2026–27 academic year. We are monitoring federal guidance and will update you as details are finalized.

• Will these changes affect my institutional scholarship(s)?

  Generally, federal loan and aid changes under the new law will not affect your institutional scholarship(s). Institutional scholarships are awarded and renewed based on university policies and program criteria.

• Will these changes affect my Parent PLUS Loan?

  If you’re currently enrolled and utilizing the student and/or parent loan programs at Maryville, there are no changes to the aid you’ve already received. If you (or your parent) borrowed a student loan for a term that begins before July 1, 2026, you may be eligible to borrow under the previous loan limits. To be eligible for the previous PLUS loan limits, you must be continuously enrolled in your current program of study. If you withdraw or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program, or are still enrolled in your current program past the published program length of completion.

• What if I plan to borrow federal loans for a future academic year and won’t be enrolled full-time?

  The new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year (undergraduate or graduate). Your eligibility will be determined at the time of disbursement based on the number of credit hours a full-time student is expected to take for the academic year.

• What happens if I’ve already reached my maximum federal loan amount under the old rules?

  If you have borrowed up to the aggregate federal loan limits under current rules, you may not be eligible for additional Federal Direct Loans unless the new law raises the limits for your situation. Be sure to review the old and new loan on the official Student Federal Aid website.

• If I take longer than three years to complete my program will I still qualify for the old rules?

  After three years, you will be subject to the new annual and aggregate Direct PLUS Loan limits. You would also have access to private loans following their own regulations.

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