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One Big Beautiful Bill Act

One Big Beautiful Bill Act

changes for bearkats

Federal student loan rules are changing under the One Big Beautiful Bill Act (OBBBA). Many of these updates will take effect on July 1, 2026 for the 2026 - 2027 academic year.

The U.S. Department of Education has not yet released full guidance, and SHSU will update this information as new details emerge.

For additional information, visit studentaid.gov.

 
This is what we know as of April 2026:
 

How less than full-time enrollment may affect your loans

Beginning July 1, 2026, federal student loans will be prorated based on the number of credit hours you enroll in.

  • If you enroll in fewer than the full-time minimum, your loans may be reduced.

  • Full-time minimums are:

    • 9 credit hours for graduate and professional programs

    • 12 credit hours for undergraduate programs

 

Graduate PLUS Loans

The Graduate PLUS Loan program will begin phasing out on July 1, 2026.

  • New borrowers (students who have not previously borrowed federal loans in their current graduate program) will no longer be eligible.

  • Students who have already borrowed federal loans for their current graduate program may continue borrowing Graduate PLUS Loans for up to three additional academic years or until program completion, whichever comes first.

 

New lifetime loan limit for graduate students

  • The annual loan limit remains $20,500.

  • The lifetime borrowing limit is now $100,000.

 

New Parent PLUS Loan limits

Beginning July 1, 2026, Parent PLUS Loans will change:

  • Parents may borrow up to $20,000 per student per academic year.

  • A new $65,000 lifetime limit will apply per dependent student.

  • Parents who have already borrowed Parent PLUS Loans may continue borrowing for up to three additional academic years, or until the student completes their degree, without being subject to the new limits.