Understanding the Big Beautiful Bill — and How It Affects You
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law resulting in significant changes to federal student aid programs.
While some details are yet to be finalized, Concord University is closely monitoring updates from the U.S. Department of Education and will continue to provide timely updates and guidance to help you understand how these changes may affect you.
Please note that this legislation does not impact financial aid awards for the 2025–2026 aid year. The new legislation goes into effect for loans to be disbursed on or after July 1, 2026.
What Will Change in the 2026-27 Aid Year?
Loan Proration
Annual loan amounts will be prorated based on your enrollment status.
How does this affect you?
The amount of loan funding you can receive will depend on the number of credits you’re enrolled in and may be adjusted based on your enrollment level. As a reminder, students must maintain a minimum of 6 credit hours to be eligible for federal student loans. Details are still being finalized.
Federal Student Loans
Federal Graduate PLUS Loans will end for new borrowers after July 1, 2026.
How does this affect you?
For students in graduate programs, the Federal Grad PLUS loan program ends as of July 1, 2026, and may no longer be an option to fund your education. You should review your funding sources again to determine which payment options work best for you.
Please note: If you borrowed a Federal Direct Loan before July 1, 2026 while enrolled in a academic program, you may be able to continue borrowing Graduate PLUS Loans for up to 3 academic years in your program of study, or until you finish your current program—whichever is shorter.
Annual & Lifetime Loan Limit Changes
The following annual and lifetime federal student loan limits will take effect beginning with the 2026–2027 aid year:
Federal Grad Unsubsidized Loans
- Annual limit: $20,500
- Combined undergraduate + graduate lifetime limit: $100,000
Federal Parent PLUS Loans (per dependent student)
- Annual limit: $20,000
- Lifetime limit: $65,000
How does this affect you?
Depending on your individual borrowing history, your ability to borrow Federal Loans in the future may be impacted. To review your borrowing history, please visit the Federal Student Aid website.
Repayment Plans
Beginning July 1, 2026, there will be changes to federal loan repayment options. New borrowers will be required to select from one of the following:
- Repayment Assistance Plan (RAP): Monthly payments based on your income
- Standard Repayment Plan: Fixed monthly payments with terms of 10, 15, 20, or 25 years
How does this affect you?
Starting July 1, 2026, new borrowers will be required to choose between two repayment plan options listed above.
All other repayment plans are ending. If you’re in a different plan now, you’ll need to switch to RAP or Standard by July 1, 2028.
If you’re not sure which option is best, contact your loan servicer.
Federal Pell Grants
If your non-federal scholarships or grants already cover your full cost of attendance, you may not receive Federal Pell Grant funding.
How does this affect you?
If you receive scholarships or grants from CU, the state, or private organizations that meet your full cost of attendance, you may not receive Federal Pell Grant funding.