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On July 4, 2025, the One Big Beautiful Bill Act (OB3), also known as the Working Families Tax Cuts Act, was signed into law, resulting in changes to federal student loan programs. While there are no changes to federal student loans for the 2025-26 academic year, there are significant changes effective July 1, 2026.
Important Disclaimer: The information contained on this page is provided by Brenau’s financial aid staff to provide awareness of the impending changes to the federal loan programs. The information is based on our current understanding, it is not official guidance and should not be regarded as definitive.
Brenau will continue to update this webpage as the Department of Education releases more information.
We are here to help you with any questions or concerns you may have! If you would like to speak with a financial aid counselor, please call us at 770-534-6152 or email us at [email protected].
Beginning July 1, 2026, the following financial aid regulation is in effect.
Grad PLUS Loans
- Grad PLUS loans have been eliminated for new borrowers.
- Legacy Provision (Limited Loan Exception): Brenau students who received Direct Loans before July 1, 2026, while enrolled in a program of study can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less. This is defined as the difference between the program length and the period of the program the student has completed as of the date of the determination, where program length is the amount of time it takes a full-time student to complete the program.
New Graduate Unsubsidized Direct Loan Limits (effective July 1, 2026)
- Graduate students may be eligible for up to $20,500 per year in Direct Unsubsidized Loans, with an aggregate limit of $100,000.
- Professional students may be eligible for up to $50,000 per year in Direct Unsubsidized loans, with an aggregate limit of $200,000.
- New lifetime borrowing limit on all federal student loans, excluding Parent PLUS Loans, is $257,500 ($57,500 as an undergraduate)
Undergraduate Limits and Parent PLUS Loans
- There are no changes to the undergraduate annual or aggregate loan limits, however, all undergraduate loans will count toward the new lifetime limits.
- Starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a lifetime limit of $65,000 per dependent student.
- Legacy Provision: If a borrower has a Parent PLUS loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less. This is defined as the difference between the program length and the period of the program the student has completed as of the date of the determination, where program length is the amount of time it takes a full-time student to complete the program.
Loan Proration for Part-Time Students (Undergraduate and Graduate)
- Starting with the 2026-2027 aid year, annual federal loan limits must be reduced for students enrolled in a less-than-full-time status.
- This means that a part-time student enrolled less than full-time will only be eligible for a portion of the annual loan limit.