Federal Financial Aid Updates

The One Big Beautiful Bill Act (OBBBA) (H.R.1) was signed into law by President Donald Trump in July 2025. The OBBBA includes significant changes to federal financial aid which take effect July 1, 2026, unless otherwise noted.

• The University of West Florida and the Office of Financial Aid & Scholarships are closely monitoring these federal changes and will share updates as more guidance becomes available.
• The Department of Education (ED) must publish final rules prior to UWF confirming specific implications to our students. The ED must publish final rules by June 1, 2026. 
• We will continue updating this page as more information becomes available.

The updates below come from the negotiated rulemaking sessions held by the Reimagining Innovative Student Engagement (RISE) committee.

Undergraduate Students

Federal Pell Grant

• Maximum Pell Grant amount remains the same.
• Part-time students can still receive Pell.
• Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant amount) are not eligible for Pell.
• If your non-federal scholarships and grants fully cover your cost of attendance, you are not eligible for Pell.
• Foreign income is now included in the adjusted gross income used to calculate Pell eligibility on the FAFSA.

Federal Direct (Stafford) Loans

• No changes to undergraduate annual or aggregate borrowing limits.
• If you are enrolled in less than 12 credit hours, your loan amount will be adjusted (prorated) based on your enrollment.

Parent PLUS Loans

• Parents may borrow up to $20,000 per year per student.
• Lifetime limit is $65,000 per student, including any amounts repaid, forgiven, canceled, or discharged.
• Legacy provisions apply.

Graduate & Professional Students

Loan Limits

• Graduate Students
  • No changes to the graduate annual borrowing limit of $20,500.
  • New $100,000 aggregate limit (does not include undergraduate borrowing).
  • Legacy provisions apply.

• Professional Students
  • New $50,000 per academic year.
  • New $200,000 aggregate limit (does not include undergraduate borrowing).
  • Legacy provisions apply.
  • UWF does not currently offer any qualifying Professional Degree Programs.

The legislation defines professional programs as degrees in:
Pharmacy (Pharm.D.), Dentistry (D.D.S./D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C.), Law (J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M.), Theology (M.Div./M.H.L.), and Clinical Psychology (Psy.D./Ph.D.).

Graduate PLUS Loans

• Eliminated for students who begin a program after July 1, 2026.
• Legacy provisions apply.

Loan Proration

• If you are enrolled in less than 6 credit hours, your loan amount will be adjusted (prorated) based on your enrollment.

Legacy Provisions

• Under the legacy rules, you can still borrow Graduate PLUS loans and will remain under the current aggregate borrowing limits if you:
  • Started your program before July 1, 2026 and are still enrolled in the same program,
  • Borrowed Federal Direct Loans for your program before July 1, 2026, and
  • Stay in your program for up to three more years or until you finish your program, whichever is less.
• If you meet the criteria above, you cannot opt out of the legacy provisions.

Lifetime Loan Limits

• Applicable to all new borrowers after July 1, 2026.
• Maximum allowable limit is now $257,500.
• Maximum allowable limit includes amounts canceled, repaid, forgiven, or discharged. Excludes PLUS loans.
• Students who do not borrow any loans while enrolled in a qualified professional program will not reach the lifetime borrowing limit of $257,500.

Repayment Plan Changes

• The SAVE repayment plan has been eliminated.
• A new, simplified Repayment Assistance Plan (RAP) will be available.
• Review Federal Loan Repayment options.

What This Means for You

• These changes begin July 1, 2026.
• Current students may not see immediate changes, depending on enrollment status and program.
• The required changes may cause processing delays in the Office of Financial Aid & Scholarships.
• More federal guidance is expected upon the ED publishing final rules no later than June 1, 2026.

Please review the chart below to see how federal guidelines compare before and after July 1, 2026.

Topic	Before July, 1 2026	After July 1, 2026
Pell Grant	Max amount unchanged; part-time students eligible	Max amount unchanged; part-time students eligible; students fully covered by other scholarships/grants or with SAI ≥ 14,790 not eligible; foreign income included in FAFSA AGI
Undergrad Direct Loans	Current annual & aggregate limits; prorated for fall graduating semesters enrolled <12 hours	No change to limits; loans prorated if enrolled <12 hours at any time
Parent PLUS Loans	Current borrowing rules; no new limits	$20,000/year per student; $65,000 lifetime per student including amounts canceled, repaid, forgiven, or discharged
Graduate Loan Limits	Annual limit $20,500; $138,500 aggregate limit (includes undergrad borrowing); increased unsub limits for qualified health professions	No change for graduate students annual limit; aggregate limit now $100,000 (excludes undergrad borrowing); students meeting legacy provisions under prior limits; qualified health programs remain eligible for increased unsub limits for legacy students
Professional Loan Limits	N/A	Annual $50,000; aggregate $200,000; UWF currently does not offer qualifying professional programs
Graduate PLUS Loans	Available for eligible students	Eliminated for new students starting programs after 7/1/26; legacy students may continue under old rules
Lifetime Loan Limits	Existing is $138,500 aggregate borrowing max (includes undergrad borrowing).	Applicable to all new borrowers after 7/1/2026; $257,500 maximum limit including undergrad borrowing and amounts canceled, repaid, forgiven, or discharged; Excludes PLUS loans; if never in a qualified professional degree program, will never borrow $257,500.
Enrollment Loan Proration	Not required unless undergrad graduating Fall <12 hours	Loans prorated if < 12 hours (undergrad) or < 6 hours (grad) at any time
Repayment Plans	SAVE & existing plans	SAVE eliminated; new Repayment Assistance Plan (RAP)