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Financial Aid
One Big Beautiful Bill Act (OBBBA) Updates
On July 4th, 2025, the One Big Beautiful Bill Act (H.R.1) was signed into law by President Trump. Elements of this bill contain changes to the Federal Financial Aid programs.
All Federal Aid Programs require the submission of the Free Application for Federal Student Aid (FAFSA).
Below are some of the changes effective July 1, 2026, that may affect your UMMC Financial Aid awards and eligibility:
- The Elimination of the Grad PLUS Loan program
- New borrowing limits for Federal Direct Unsubsidized Loans
- Changes to how the Federal Pell Grant is administered and awarded
Explore below for more details regarding changes that may be specific to your area of study:
FAFSA Changes Effective July 1, 2026:
- Family farms and family-owned small businesses will no longer be counted as assets (reverting to rules before FAFSA Simplification)
- Family Farm – Farms on which the family resides
- Small Business –100 or fewer full-time (or full-time equivalent) employees
- Family-owned commercial fisheries are now also exempt from asset reporting
- Foreign income must now be included in the Adjusted Gross Income (AGI) for Pell Grant eligibility
Pell Grant Updates
Pell Grants & Full Scholarships
- Students whose Cost of Attendance (COA) is fully covered by non-federal aid will no longer be eligible for a Federal Pell Grant.
Ends the previous allowance for Pell Grants to exceed COA when combined with other aid
- Example: A Pell-eligible student with a scholarship covering the full Cost of Attendance will no longer receive both the scholarship and the Pell Grant
Pell Grants & High Student Aid Index (SAI)
- Students with an SAI greater than twice the maximum Pell Grant amount will be ineligible for any Pell Grant
- Example: If the max Pell Grant is $7,395, students with an SAI over $14,790 will not qualify
Undergraduate Direct Student Loan Updates
See the new OBBBA borrowing limits below for any changes that may impact your student loans.
| Current Limits (before July 1st, 2026) | Changes Effective July 1st, 2026 |
Annual and aggregate limits are based on dependency status Dependent Student:
Independent Student:
Maximum Lifetime Borrow Amount:
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Parent PLUS Loan Updates
Parent PLUS Loans are loans taken out by parents on behalf of dependent undergraduate students.
| Current Limits (before July 1st, 2026) | Changes Effective July 1st, 2026 |
Annual Limit: Determined by the formula of "Cost of Attendance – Other Aid (i.e., grants, scholarships, other loans)" Aggregate Limit: No limit Eligibility is based on student enrollment and a minimal credit check of the parent applicant. | Annual Limit: $20,000 per student (combined from all parents) Aggregate Limit: $65,000 per student Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less. New Borrowers: Must seek alternative funding if limits are exceeded |
Graduate/Professional Unsubsidized Loans
| Current Limits (before July 1st, 2026) | Changes Effective July 1st, 2026 |
Graduate Students:
Professional Students:
| Graduate Students:
Professional Students:
Total Aggregate Limit: $257,500 across all federal loan programs (undergraduate and graduate) |
Graduate PLUS Loans
Graduate PLUS Loans are for students enrolled in a graduate or professional degree program. Please note that beginning July 1, 2026, the Grad PLUS loan program will be eliminated.
| Current Limits (before July 1st, 2026) | Changes Effective July 1st, 2026 |
Annual Limit: Determined by the formula of Cost of Attendance – Other Aid (i.e., grants, scholarships, other loans) Aggregate Limit: No limit Eligibility is based on student enrollment and a minimal credit check of the applicant | *This program is to be eliminated for new borrowers*Legacy Provision: Students with an existing Grad Plus Loan disbursed at UMMC while enrolled in the 2025-2026 academic year may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less. Prior eligibility requirements will apply to legacy borrowers. |
Graduate PLUS Loans Frequently Asked Questions
Q: Can a current UMMC Graduate student who has received a Graduate PLUS Loan for their current program continue receiving the Grad PLUS loan to complete the degree?
A: Effective July 1, 2026, the One Big Beautiful Bill Act eliminated the Federal Graduate PLUS loans for all students who had not borrowed a Direct Loan at UMMC before that date. Under certain rules, the law allows current borrowers to continue borrowing from the program for 3 years or until they complete their program, whichever is shorter.
Q: What is the definition of a "legacy borrower"?
A: A legacy borrower is a current UMMC student who has borrowed any Federal Direct Loan (i.e., Subsidized, Unsubsidized, or Graduate PLUS) before July 1, 2026. Borrowing a loan before July 1, 2026, means the loan was disbursed before that date.
Q: Can a current UMMC undergraduate student who has borrowed Direct Loans at UMMC and will complete an undergraduate degree in the 2025-26 school year and begin graduate studies at UMMC in the fall semester of 2026 be considered a legacy borrower for the Federal Graduate PLUS Loan at the beginning of that program?"
A: No, one cannot be considered a legacy borrower with a new program starting after July 1, 2026.
Q: What must a legacy borrower do to retain Grad PLUS borrowing eligibility?
A: Continuous Enrollment Requirement
Legacy borrowers must be continuously enrolled. For example, legacy borrowers will lose eligibility to continue using the Graduate PLUS Loan if they:
- Take a fall or spring semester off
- Begin enrollment in a fall or spring semester and withdraw partially through it
If attendance in the summer term is not required as part of a student's academic degree requirements, then summer is excluded from the continuous enrollment requirement, so a borrower will not lose eligibility for not taking classes in the summer.
Three Years of Eligibility
Legacy borrowers can retain eligibility for the Graduate PLUS Loan for only 3 academic years after July 1, 2026, or for the remainder of their program of study, whichever is shorter.
Changing Programs
Legacy borrowers are no longer eligible to borrow Grad PLUS loans if they change to a different graduate or professional program after July 1, 2026.
Q: Will withdrawing or taking a semester off result in a loss of Grad PLUS loan eligibility?
A: Legacy borrowers must be continuously enrolled. Summer is excluded from the continuous enrollment requirement, so a borrower will not lose eligibility for not taking classes in the summer.
Q: What is considered a "year" when counting 3 years of eligibility as a legacy borrower?
A "year" is an academic year, not a calendar year. The UMMC Academic Year begins in the summer semester.
Q: What loan options are available to a Graduate student if the Federal Grad PLUS Loan no longer exists for new graduate students or new borrowers?
A: The federal direct unsubsidized loan remains available for all graduate students.
| Other loan options may be available through private/alternative loan lenders. You can view information about this and UMMC's ELMSelect website. |