Upcoming Federal Financial Aid Updates Effective July 1, 2026

In July 2025, President Trump signed into law the One Big Beautiful Bill (OBBBA) (H.R.1) which introduces significant changes to federal student financial aid programs beginning July 1, 2026. The final regulatory rules interpreting this reconciliation bill have not yet been released. The details provided below reflect the current understanding of the law and may change as additional guidance becomes available. The University of North Florida will continue to review updates from the U.S. Department of Education and will share new information as federal regulations are finalized. 

Pell Grant Updates

• The maximum Federal Pell Grant award amount is not changing
• Students may become ineligible for Pell Grant if:
  • Their Student Aid Index (SAI) is greater than twice the maximum Pell Grant amount (14,790), or
  • Non-federal grants or scholarships fully cover the student's Cost of Attendance, even if otherwise eligible for the program
• Foreign income must now be included in adjusted gross income (AGI) when determining Pell eligibility 

Federal Student Loan Changes 

Undergraduate Students

• Annual and aggregate Direct Subsidized and Unsubsidized loan limits remain unchanged
• New annual and aggregate loan limits for Parent PLUS loans
  • $20,000 per year per dependent student
  • $65,000 lifetime aggregate loan limit per student
  • If a borrower has a Federal Direct Loan disbursed before July 1, 2026, while student is enrolled in a program of study, the student can continue to borrow under current loan limits for the shorter of three academic years or remainder of their expected time to credential, pending on final federal guidance.  The student must continuously be enrolled in the same program of study at the same institution to qualify. A student may not opt out of legacy provisions 
• Federal Direct Student Loans will be reduced based on enrollment if a student is less than full-time (12 credit hours for Undergraduate)

Graduate Students

• The Grad PLUS loan program will be eliminated for students who begin a new Graduate program on or after July 1, 2026
• If a borrower has a Federal Direct Loan disbursed before July 1, 2026, while student is enrolled in a graduate program of study, the student can continue to borrow from the Graduate PLUS Loan program for the shorter of three academic years or remainder of their expected time to credential, pending on final federal guidance. The student must continuously be enrolled in the same program of study at the same institution to qualify. A student may not opt out of legacy provisions.
• New $100,000 Graduate aggregate loan limit (not including Undergraduate loans) and $257,500 lifetime aggregate borrowing limit (combined Undergraduate and Graduate loans)
• UNF currently does not offer any qualifying Professional Degree programs defined by the legislation 
• Federal Direct Student Loans will be reduced based on enrollment if a student is less than full-time (currently 9 credit hours for Graduate)

Loan Repayment

• The SAVE repayment plan will be discontinued for future borrowers 
• A new Repayment Assistance Plan (RAP) will replace the SAVE plan
• To view more information about current loan repayment plans, visit Federal Student Aid. 

What Students Should Do Now

• Complete the FAFSA as early as possible each year
• Consider how part-time enrollment may affect current and future loan eligibility 
• Review borrowing plans carefully, especially if relying on Parent PLUS or Graduate loans
• Monitor your UNF email and financial aid website for updates as federal guidance becomes final