Updates: Federal Student Financial Aid

The One Big Beautiful Bill Act was passed on July 4, 2025, which made significant changes to the federal student financial aid programs effective July 1, 2026.

This page provides information about these changes and how they might affect recipients of federal student aid. This information reflects the most current guidance available, but is subject to change. The Kansas State University Office of Student Financial Assistance will update this page as additional guidance becomes available.

Changes to Federal Direct Loans

• Discontinuation of the Graduate PLUS Loan Program

  Beginning July 1, 2026, the Federal Graduate PLUS Loan program, which currently allows graduate students to borrow up to the full cost of attendance for their program of study, will be discontinued for new borrowers.

  Legacy Provision: If a student has a Graduate PLUS Loan disbursed before July 1, 2026, they can continue to borrow under this loan program until the degree/credential has been earned OR for three (3) academic years – whichever comes first.

• Federal Parent PLUS Loan Program
  Annual Loan Limit: Parents may only borrow up to $20,000 per year for a dependent student beginning July 1, 2026.
  
  Lifetime Aggregate Limit: Parents are limited to a lifetime total aggregate of $65,000 per dependent student beginning July 1, 2026.
  
  Legacy Provision: If a parent has a Parent PLUS loan disbursed before July 1, 2026, they can continue to borrow under this loan program until the degree/credential has been earned OR for three (3) academic years – whichever comes first.
• Graduate Unsubsidized Loans
  Annual Loan Limit: The annual unsubsidized loan limit remains at $20,500.
  
  Lifetime Aggregate Limit: Unsubsidized loans are now limited to $100,000 for graduate students.
  
  Legacy Provision: If a grad student has an unsubsidized loan disbursed before July 1, 2026, they can continue to borrow under this loan program until the degree/credential has been earned OR for three (3) academic years – whichever comes first.
• VetMed Unsubsidized Loans
  Annual Loan Limit: The annual unsubsidized loan limit is $50,000.
  
  Lifetime Aggregate Limit: Unsubsidized loans now limited to $200,000 for professional students.
  
  Legacy Provision: If a professional student has an unsubsidized loan disbursed before July 1, 2026, they can continue to borrow under this loan program until the degree/credential has been earned OR for three (3) academic years – whichever comes first.
• New Loan Limits for Part-Time Students
  Under a new provision that a student’s loan amount for an academic year must be prorated if the student is enrolled in less than a full-time class load.

Changes to Federal Pell Grants

• Pell Grant Eligibility
  Students who receive grants/scholarships from non-federal sources that meet or exceed their full Cost of Attendance (COA) will NOT be eligible for a Federal Pell Grant.
  
  Students with a Student Aid Index (SAI) that exceeds twice the maximum Pell Grant award will NOT be eligible for a Federal Pell Grant.

FAQs

• Were any changes made to the Pell Grant enrollment requirements?
  No. Earlier versions of the bill proposed changing the definition of full-time enrollment for Pell eligibility, as well as eliminating Pell eligibility for less than-half time enrollment. These provisions were not included in the final legislation.
• Has the Subsidized Direct Loan for undergraduate students been eliminated?
  No. An earlier version of the bill proposed eliminating the subsidized loan program. However, this provision was not included in the final legislation.