Recent Changes to Financial Aid

Home Pay for College Financial Aid Recent Changes to Financial Aid

The One Big Beautiful Bill Act (OB3) law includes significant changes to federal student loans, borrowing limits, and repayment options. Many of these provisions require additional federal regulations before they can be fully implemented. The U. S. Department of Education is currently completing that process through negotiated rulemaking. Most OB3 financial aid changes are scheduled to take effect on July 1, 2026, unless otherwise noted. Some provisions have different effective dates, which will be clearly identified on this page.

Because the federal rulemaking process is ongoing (Public Comment is now closed), details may continue to evolve. This page will be updated as new information becomes available.

For the most up-to-date information from the Department of Education, please visit Federal Student Aid’s OB3 Updates page.

Changes to Federal PLUS Loans

Parent PLUS Loans

Parent PLUS loans will continue to be available, but with new statutory limits:

New Annual Limit: Parents may borrow up to $20,000 per student, per year.
New Lifetime Limit: Parents may borrow up to a total of $65,000 per student.

Note: Previously, Parent PLUS loans were limited only by the Cost of Attendance. Families needing more than these limits may need to explore private loan options.

New Annual & Lifetime Borrowing Caps

Borrower Type	Annual Limit	Lifetime Limit
Undergraduate	$5,500 – $12,500	$31,000 – $57,500
Parent PLUS*	$20,000 per student*	$65,000 per student*
Graduate*	$20,500	$100,000*
Total Lifetime Cap	N/A	$257,500*

The $257,500 cap includes all undergraduate, graduate, and professional loans combined, even if they have been repaid or forgiven.

Legacy Protections* (Grandfathering)

If you have a disbursed federal loan before July 1, 2026, you may qualify for legacy protection to continue borrowing under current rules. To qualify, you must:

Be enrolled in your program as of June 30, 2026.
Have received at least one Federal Direct Loan disbursement for that program.
Maintain continuous enrollment (Legacy protection ends if you withdraw, transfer or begin a new program).

Enrollment Based Loan Proration

Starting in the 2026-2027 award year, your Annual Loan Limit will be reduced proportionally if you are enrolled less than full-time (24 credits annually). The maximum amount for one semester is half of your annual loan limit.

Example: If you take 9 credits (9/24 = 37.5% of full-time), you are only eligible for 37.5% of your total annual loan amount. You must still be registered at least half-time in a given semester to receive loans for that semester.

View Federal Direct Loan Annual Limits

Simplified Repayment Plans

For loans made on or after July 1, 2026, repayment will be simplified into two main options:

Tiered Standard Repayment Plan: Fixed payments over 10–25 years based on your total balance.
Repayment Assistance Plan (RAP): Income-based payments (1%–10% of income) with a $10 minimum. Remaining balances are forgiven after 30 years.

Frequently Asked Questions

Enrollment & Loan Eligibility

Q: I am a part-time student taking 6 credits. How does the OB3 change my student loan amount?

A: Under the new regulations, federal Direct Loans will now be proportionally reduced based on your enrollment level. Previously, many students could receive a full loan amount as long as they were at least half-time. Starting July 1, 2026, if you are enrolled half-time (typically 6 credits), your loan eligibility will be roughly 50% of a full-time award.

Q: Does the OB3 change the maximum amount I can borrow for my bachelor’s degree?

A: No. The annual and aggregate loan limits for undergraduate students remain the same ($31,000 for dependent students and $57,500 for independent students). However, all loans now count toward a new total lifetime borrowing limit of $257,500, which includes any future graduate or professional studies you may pursue after transferring.

Q: If I am enrolled 12 or more credits fall, and I do not plan to attend spring because I will graduate after fall, can I use all of my loan eligibility during the fall semester?

A: No, the new regulations limit the amount a student can receive for one semester to half of the annual maximum.

Q: If I was not in attendance fall semester and will begin with the spring semester, can I use loan funds for spring and summer?

A: If you did not attend in the fall but begin in the spring, you may still be able to receive a federal Direct Loan that covers both spring and summer, as long as you are in an eligible program, enroll at least half time in each term you want to receive loan funds, and meet all other federal and Kansas Wesleyan University requirements. The university will determine your loan period (for example, spring only or spring and summer combined) when we review your enrollment. Beginning with the 2026–27 aid year, loan amounts are adjusted if you are enrolled less than full time, which can reduce how much is available for later terms in the same loan period.

Q: If I was enrolled in 12 credits for fall and dropped a class after my loans disbursed, reducing my credit load to 9 credits, is the loan still require to be prorated?

A: Your fall loan will be prorated based on your enrollment at the time of disbursement, if you were enrolled in 12 credits when your loan disbursed your fall loan eligibility will not change. Your spring loan will be prorated based on your new annual enrollment level.

Q: If I withdraw after my fall loan is paid at 100%, and I do not return in spring or summer and I return next fall, will there be any implications?

A: If you withdraw after your fall Direct Loan has been disbursed, federal regulations require Kansas Wesleyan to review how much of that aid you actually earned based on how far you were into the term. If you withdraw before completing more than 60% of the semester, we may have to return part of your fall loan to the U.S. Department of Education, which can create a balance you owe to the university or to the Department. If you owe an outstanding Title IV overpayment or have not repaid a resulting balance, you will not be able to receive additional federal aid when you return. As long as you resolve any balance, are not in default, and meet all other eligibility and satisfactory academic progress requirements, you can receive federal aid, including loans, when you come back the next fall.

Pell Grant Changes

Q: Is there a new “hard cutoff” for Pell Grant eligibility?

A: Yes. Starting in the 2026–27 award year, a student is ineligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. For example, if the max Pell is $7,395, any student with an SAI of $14,790 or higher will not receive a Pell Grant.

Q: I received a private scholarship that covers my entire tuition and books. Can I still get my Pell Grant for living expenses?

A: If the total of your non-federal grants and scholarships is equal to or higher than your COA, federal rules say you are not eligible for a Pell Grant unless some of your non-federal aid can be reduced so that the total is below your COA. If you’re not sure whether your scholarship is less than your COA, contact our Financial Aid Office and we can review your aid and tell you whether you can still receive Pell for living costs. Veteran education benefits are exempt from this requirement.

Parent PLUS Loans

Q: My parents want to help me pay for college. Are there new limits on what they can borrow?

A: Yes, for new borrowers starting July 1, 2026, Parent PLUS Loans are now capped:

Annual Limit: $20,000 per student.
Lifetime Limit: $65,000 total per student ($16,250 per year for four years).
Note: If your parents borrowed a PLUS loan for you before July 1, 2026, they may be “grandfathered” into the old, uncapped rules for up to three years while you remain in the same program. Federal PLUS Loan eligibility will be based on time of completion of your current program.

Repayment & Forgiveness

Q: What happens to my old income-driven repayment (IDR) plan?

A: The OB3 streamlines repayment into two primary options: a tiered Standard Repayment Plan and a new Repayment Assistance Plan (RAP). Borrowers currently on older IDR plans must transition to one of these new options by July 1, 2028. If you do not choose a plan by then, the Department of Education will automatically move you into the RAP.