Federal Student Aid Changes
(Effective July 1, 2026)
Beginning July 1, 2026, significant updates to federal financial aid will impact how students and families borrow, repay, and qualify for aid. These changes apply to the 2026–27 academic year and beyond and stem from recent federal legislation of the One Big Beautiful Bill Act (OBBBA).
There are no changes to federal student aid for the Spring 2026 term.
This information is based on our current understanding of the legislation. It is not official guidance. The information below highlights key changes to help students and their families better understand the impact on their aid package.
Undergraduate Students
Federal Pell Grants
- No Pell Grant if your Student Aid Index (SAI) exceeds certain thresholds
- Foreign income now included in Adjusted Gross Income (AGI) to calculate Pell eligibility
- Students may be ineligible to receive Pell Grant if grants or scholarships from nonfederal sources (state, institutional, private, etc.) cover the entire cost of attendance (COA)
- CCU does not have any certificate programs that meet the federal definition for Workforce Pell Grant
Federal Direct Subsidized/Unsubsidized Loans
- Loan amounts may be reduced for part-time enrollment
- Annual loan limits are unchanged for full-time students
- Any undergraduate loans received will count towards new lifetime borrowing limit
Federal Parent PLUS Loans
New borrowing caps (for loans after July 1, 2026):
- $20,000 per year per student
- $65,000 lifetime per student
Legacy Provision: If a student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in the same program of study, the parent can continue to borrow under the previous loan limits up to 3 academic years or the remainder of the dependent student's expected time to completion, whichever is less. Previously: could borrow up to full cost of attendance.
Loss of Legacy Provision: You could potentially lose the exception to prior borrowing rules if the following occur: student changes program of study, student withdraws during term or student takes leave of absence.
Graduate Students
Graduate PLUS Loans
- Graduate PLUS Loans will be discontinued for new borrowers starting July 1, 2026
Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in the same program of study, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.
Loss of Legacy Provision: You could potentially lose the exception to prior borrowing rules if the following occur: student changes program of study, student withdraws during term or student takes leave of absence.
Graduate Unsubsidized Loans
- Graduate students may borrow up to $20,500 per year, with new aggregate limit of $100,000 (excluding undergraduate loans).
- Loan amounts may be reduced for part-time enrollment
- CCU does not have any programs that meet the federal definition of Professional Degree
All Students
Lifetime Borrowing Federal Loans
- New $257,500 lifetime borrowing limit on all federal student loans (excluding Parent PLUS Loans).
Loan Proration for Student Enrolled Less Than Full Time
- New legislation requires any Direct Loans (Subsidized and Unsubsidized) awarded for 2026-27 academic year and beyond, annual loan limit eligibility will need to be prorated based on student's enrollment status if less than full time.
- Loan Proration Formula:
- Undergraduate Students: Credit Hours Enrolled ÷ 24 Credit Hours in an Academic Year x Annual Direct Loan Limit
- Graduate Students: Credit Hours Enrolled ÷ 18 Credit Hours in an Academic Year x Annual Direct Loan Limit
New Federal Loan Repayment System
Federal loans issued on or after July 1, 2026, will have only two repayment options:
- Standard Repayment Plan (fixed payments over 10–25 years)
- Repayment Assistance Plan (RAP) (income-based, ~1–10% of income, forgiveness after ~30 years)
Existing borrowers may keep current plans (temporarily), but options will be phased out over time.
Many details of these changes remain subject to federal rulemaking and guidance from the Department of Education. Policies, procedures, and information on this page may be updated as new details become available. See studentaid.gov for more information. If you have any questions about your financial aid, contact CCU Student Financial Services.