One Big Beautiful Bill Act (OBBBA)
The "One Big Beautiful Bill Act" (OBBBA) was signed into law on July 4,2025. This budget reconciliation package will make significant changes to financial aid programs nationwide. These changes will be effective starting July 1, 2026, meaning that they will be effective for the 26-27 aid year. Final clarification and guidance regarding the implementation of these changes is still forthcoming from the Department of Education. We will continue to keep this page up to date with the most current information available.
Federal Student Loan Changes
These updates mainly affect students and families who will borrow federal loans on or after July 1, 2026, including:
- Students starting a new undergraduate or graduate program in 2026 or later,
- Students enrolled part-time who borrow federal loans, and
- Families using Parent Plus Loans.
Some enrolled may qualify for legacy provisions, allowing certain borrowers to continue under previous federal student aid rules for a limited period of time. Please note that the U.S. Department of Education will determine who is a legacy borrower for these provisions.
Loan Proration for Part-Time Students
Beginning July 1, 2026
Federal Direct Loan amounts will be prorated based on the number of of credits a student takes each term.
- Students enrolled full-time will be eligible for the full loan amount. Undergraduate students are considered full-time at 12 credit hours.
- Students enrolled part-time (anything less then 12 credit hours) will have a reduced loan amount proportionate to their number of enrolled credit hours.
- Students who drop below 6 credit hours will still be ineligible to receive any amount of their direct student loans.
Dropping or withdrawing from a course may reduce your loan amount. Please be sure to contact your advisor before making any major changes to your schedule!
Parent PLUS Loan Limits
Beginning July 1, 2026
New limits will apply to Federal Parent Plus loans for undergraduate students.
- Annual limit: Up to $20,000 per dependent student per award year
- Combined total if both parents borrow
- Multiple parents cannot each borrow the maximum for the same student
- Aggregate (lifetime) limit: Up to $65,000 per dependent student over time. This limit will not adjust if loans are paid down or forgiven.
Legacy Provision for Parent Plus Loans: In some cases Parents who borrowed Parent PLUS loans before July 1, 2026, may be able to continue to borrow under current rules for up to 3 additional academic years or until the student completes their current degree, whichever occurs first. The U. S. Department of Education will determine who is a legacy borrower for these provisions.
Pell Grant Eligibility Changes
Beginning July 1, 2026
Students who have a Student Aid Index (SAI) which is greater than twice the maximum Pell grant award will not be eligible for the Federal Pell Grant.
What This Means
Some students who previously qualified for a Pell Grant may no longer qualify under the updated federal guidelines.
Graduate Student Loan and Borrowing Changes
While Gordon does not currently offer any graduate or professional degree programs, there are changes that will affect those students who are considering pursuing a graduate or professional degree in the future.
Loan Proration for Part-Time Students
Beginning July 1, 2026
Federal Direct Loan amounts will be based on the percentage of credits a student takes each term.
- Students enrolled full-time will be eligible for the full loan amount. Graduate students are considered full-time at 9 credit hours.
- Students enrolled part-time will have a reduced loan amount based on the enrolled credit hours.
Graduate PLUS Loan Availability
Beginning July 1, 2026
Eliminated for new borrowers
- Graduate students who begin a new graduate program on or after July 1, 2026, will not have Graduate PLUS Loans available, even if they borrowed Graduate PLUS Loans in the past.
Federal Direct Unsubsidized Loan Limits for Graduate Students
Beginning July 1, 2026
Borrowing Limits have changed.
Current limits (through June 30, 2026):
- Annual limit: Up to $20,500 per academic year.
- Aggregate (lifetime) limit: Up to $138,500, including federal loans borrowed for undergraduate study.
New limits (effective July 1, 2026):
- Annual limit: Up to $20,500 per academic year.
- Aggregate (lifetime) limit: Up to $100,000 (applies only to graduate-level borrowing; undergraduate loans are not included).
We understand that these changes will have a significant impact on our new and current students. Please don't hesitate to reach out with any questions or concerns you have as the new year approaches. We will be happy to help answer questions and assist in navigating these new changes.