One Big Beautiful Bill Act

One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, introducing revisions to several federal student aid programs.

Changes to Federal Financial Aid That May Affect Your Eligibility

Although federal guidance is still forthcoming, the following changes are scheduled to begin July 1, 2026:

1. Federal Direct Loan amounts will be reduced proportionally for students enrolled less than full-time. Students registered for fewer than 12 credits may see a decrease in loan eligibility based on their actual enrollment level.
2. For new borrowers, Federal Parent PLUS Loans will be capped at $20,000 per academic year and $65,000 aggregate limit per dependent student.
3. For eligible students, non-federal grants and scholarships that cover the complete cost of attendance (COA) may prevent students from receiving a Federal Pell Grant, even if they are otherwise eligible for the program.
4. Federal loan repayment options will be streamlined into two plans:
   • A new tiered Standard Repayment Plan, and
   • A new income-driven repayment option called the Repayment Assistance Plan (RAP).

We understand that federal policy changes can raise important questions. CSM’s Financial Assistance Department continues to monitor guidance from the U.S. Department of Education and will provide updates as they become available.

To learn more about the One Big Beautiful Bill Act, please refer to Federal Student Aid's One Big Beautiful Bill Act Updates webpage.