Federal Student Aid Changes from the One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, resulting in changes to federal student aid programs effective July 1, 2026. These changes primarily affect graduate/professional students and parents of undergraduate students. If you are planning to utilize federal loans to finance your education in 2026–2027, we encourage you to review these updates carefully to understand how they may impact your financial planning.

The University of New Haven is beyond committed to helping students and families understand what is changing, how it affects them, and what to expect next. Please contact the Financial Aid Office at financialaid@newhaven.edu if you have any questions about how this may impact you.

What the OBBB Act Means for Borrowers

  • You are considered a new student loan borrower if you have not borrowed a Federal Direct Loan of any kind for your current degree program prior to July 1, 2026.

    Undergraduate Students

    Parent PLUS Loan

    New Parent PLUS borrowers will be subject to the following limits:

    • Annual limit: $20,000 per dependent student
    • Lifetime limit: $65,000 per dependent student.

    Federal Student Loans (Subsidized/Unsubsidized)

    • If you are enrolled less than full time (6-11 credits per semester), then the amount of your loan eligibility will be reduced proportionally to your level of enrollment.
    Graduate Students

    Graduate PLUS Loan

    • The Federal Graduate PLUS Loan program will be discontinued for new borrowers.

    Federal Unsubsidized Loan

    • The Federal Direct Unsubsidized Loan limit for Graduate students is set at $20,500 per academic year, with a lifetime limit of $100,000.
    • If you are enrolled less than full time (5-8 credits per semester), then the amount of your loan eligibility will be reduced proportionally to your level of enrollment.

  • You are considered a current student loan borrower if you have borrowed a Federal Direct Loan of any kind for your current degree program prior to July 1, 2026, you remain continuously enrolled in the same program and you are scheduled to complete your program based upon the program’s published length of time.

    Undergraduate Students

    Parent PLUS Loan

    • Students or parents who have borrowed a Federal Direct loan before July 1, 2026 will have a legacy provision, that allows them to borrow based on previous loan limits, for up to three academic years or the end of the dependent student's academic program, whichever comes first. To qualify, students must remain continuously enrolled in the same program of study at the same institution.
    • Can borrow up to the student’s cost of attendance minus other aid

    Federal Student Loans (Subsidized/Unsubsidized)

    • If you are enrolled full time (12+ credits per semester), no changes to the annual loan limit.
    • If you are enrolled less than full time (6-11 credits per semester), your loan eligibility will be reduced proportionally to your level of enrollment
    Graduate Students

    Graduate PLUS Loan

    • Current Graduate PLUS borrowers may continue borrowing under the Graduate PLUS loan program for up to three academic years or for the remainder of their current program, whichever comes first.

    Federal Unsubsidized Loan

    • Current Graduate students who have borrowed an unsubsidized loan prior to July 1, 2026, may continue to borrow under the current loan limits for up to three academic years or until the end of their program of study, whichever comes first. To qualify, students must remain continuously enrolled in the same program of study at the same institution.
    • If you are enrolled less than full time (5-8 credits per semester), then the amount of your loan eligibility will be reduced proportionally to your level of enrollment.

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