Federal Student Aid Changes effective July 1, 2026

Federal Student Aid Changes for 2026-2027

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made significant changes to federal student aid programs. Many of these changes became effective July 1, 2026, impacting the 2026-2027 academic year.

The CSUN Financial Aid & Scholarship Department is implementing these changes in accordance with federal regulations and guidance from the U.S. Department of Education. These changes may affect your financial aid awards. It is imperative that you understand the changes and the potential impact on your funding options.

Important: Some federal student aid changes may apply differently to eligible continuing borrowers who borrowed prior to July 1, 2026, under federal legacy provisions. Eligibility and applicable loan limits will depend on federal requirements and the student’s borrowing and enrollment history. CSUN will provide updates as additional federal guidance becomes available.

What Changed?

The One Big Beautiful Bill Act (OBBBA) made several changes to federal student aid programs beginning with the 2026-2027 academic year. Some of the major student loan changes include:

• Changes to Federal Pell Grant eligibility
• New federal loan proration requirements for students enrolled less than full-time
• New annual and aggregate borrowing limits for Parent PLUS Loans
• Elimination of Graduate PLUS Loans for new graduate and professional student borrowers
• Changes to annual and aggregate Direct Unsubsidized Loan limits for graduate and professional students

For additional information regarding each change, review the sections below.

Federal Pell Grant Changes
Beginning with the 2026–2027 academic year, federal law changes certain eligibility requirements for the Federal Pell Grant.

Student Aid Index (SAI)
Students with a Student Aid Index (SAI) of 14,790 or higher are no longer eligible to receive a Federal Pell Grant.

Students Fully Covered by Non-Federal Aid
Students whose full Cost of Attendance (COA) is covered by non-federal financial assistance, including institutional, state, or private aid, are not eligible to receive a Federal Pell Grant.

As a result, students receiving substantial scholarships or other non-federal assistance may experience an adjustment to their Pell Grant eligibility.

FAFSA Income and Asset Changes

Federal law also changes how certain income and assets are treated on the FAFSA, including:
• Certain family-owned businesses, family farms, and commercial fishing operations are no longer considered FAFSA assets.
• Certain foreign income is included in the Adjusted Gross Income (AGI) used to determine Pell Grant eligibility.

Students should complete the FAFSA using the information requested on the application. CSUN will determine Federal Pell Grant eligibility based on FAFSA information and applicable federal requirements.

Federal Loan Changes for Graduate and Professional Students
Effective July 1, 2026, federal law changes loan eligibility and borrowing limits for graduate and professional students. These changes include the elimination of Graduate PLUS Loans for new borrowers and new annual and aggregate Direct Unsubsidized Loan limits.

Graduate PLUS Loans
Effective July 1, 2026, the Federal Direct Graduate PLUS Loan is no longer available to new graduate or professional student borrowers. Graduate PLUS Loans remain available to eligible continuing graduate or professional students who qualify under the federal legacy exception.

Students who qualify under the federal legacy exception must have borrowed under Federal Direct Graduate PLUS prior to July 1, 2026. Legacy borrowers may continue to receive Graduate PLUS Loans for a limited period while completing the same graduate or professional program, provided all applicable federal eligibility requirements are met.

Legacy borrowers should first accept all available Federal Direct Unsubsidized Loan eligibility before requesting a Graduate PLUS Loan.

CSUN must verify that you qualify under the federal legacy exception before your loan can be processed. Submission of a Graduate PLUS Loan request does not guarantee eligibility.

Direct Unsubsidized Loans
Effective July 1, 2026, federal law establishes new annual and aggregate Direct Unsubsidized Loan limits for graduate and professional students.

Graduate Students
• Annual Loan Limit: $20,500
• Aggregate Loan Limit: $100,000

Professional Students
• Annual Loan Limit: $50,000
• Aggregate Loan Limit: $200,000

Loan limits depend on the student’s program and federal classification as a graduate or professional student.

Students should review their financial aid offer in the CSUN Portal before requesting additional loan funding and should borrow only what is needed to cover educational expenses.

For additional information, visit the Federal PLUS Loan and Federal Direct Loan pages.

Parent PLUS Loan Changes
Parent PLUS Loans remain available to eligible parents of dependent undergraduate students.

Effective July 1, 2026, federal law establishes new annual and aggregate borrowing limits for Parent PLUS Loans. Parents who qualify under the federal legacy exception may be eligible for different borrowing limits.

CSUN will determine the maximum Parent PLUS Loan amount that may be certified based on federal regulations, the student’s eligibility, Cost of Attendance, other financial aid received, and applicable federal loan limits.

Parents should review current borrowing limits before submitting a Parent PLUS Loan request.

For additional information, visit the Federal PLUS Loan page.

Loan Proration for Less-Than-Full-Time Enrollment
Effective July 1, 2026, federal law requires that annual Direct Loan eligibility be prorated based on enrollment for students who are enrolled less than full-time.

This change may affect undergraduate, graduate, and professional students who receive Federal Direct Loans.

Annual loan eligibility is based on enrollment status as follows:

Enrollment Status Loan Eligibility
Full-Time 100% of annual loan limit
Three-Quarter Time 75% of annual loan limit
Half-Time 50% of annual loan limit
Less Than Half-Time Not Eligible

What this means for you:
If you are enrolled less than full-time, your federal student loan disbursement may be reduced. Changes to your enrollment during the academic year may also affect your loan eligibility.

For additional information, visit the Federal Direct Loan page.

Please note: Federal student aid requirements and guidance may change. Information on this page will be updated as additional guidance or regulatory changes are issued by the U.S. Department of Education.

FAQs

Q: How will loan eligibility change for part-time students?
A: Starting July 1, 2026, loan amounts will be prorated based on enrollment status. Students enrolled less than full-time will receive reduced loan eligibility proportional to their enrollment level.

Q: Does loan proration apply to all students?
A: Yes. This rule applies to both undergraduate and graduate students, including those under legacy provisions.

Q: Do Parent PLUS Loans have to be prorated?
A: No, Parent PLUS Loans do not have to be prorated. While the One Big Beautiful Bill Act (OBBBA) requires most other federal student loans to be reduced in proportion to a student’s enrollment status (if enrolled less than full-time), Parent PLUS Loans are exempt from these proration adjustments.

Q: How do I know if I qualify under the Graduate PLUS legacy exception?
A: CSUN will review your federal loan history and enrollment information to determine whether you qualify. Submission of a Graduate PLUS Loan request does not guarantee eligibility.