Impact of the One Big Beautiful Bill Act on Financial Aid
The One Big Beautiful Bill Act (OBBBA), a federal budget reconciliation package signed into law on July 4, 2025, includes several significant changes to federal student aid that will take effect on July 1, 2026.
There are no changes to federal student aid for the fall 2025 and spring 2026 terms.
Fordham continues to track the evolution of this legislation and will provide clarification on this page as more information and guidance are made available from the University and the U.S. Department of Education (ED).
The below information is provided by Fordham to help our community understand the evolving federal student loan landscape. This is based on our current understanding of the legislation, but it is not official guidance and should not be considered definitive. Please refer to federal government sources for all official rules and regulations. See studentaid.gov for more information.
Anticipated Student Loan Changes beginning July 1, 2026
Undergraduate Students
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- Eligibility for part-time students is expected to be prorated based on enrollment status.
- Federal Subsidized/Unsubsidized Loan annual limits are unchanged for full-time students.
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- Parents will only be able to borrow up to $20,000 per year, per child, with a $65,000 lifetime maximum per child. This is a change from current rules, which allow borrowing up to the Cost of Attendance without a lifetime limit.
- Existing students with a Federal Direct loan disbursed before July 1, 2026, can continue under the current limits until the completion of their current program or for up to three additional years, whichever comes first.
Graduate Students
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- Graduate PLUS Loans will no longer be available to new borrowers starting July 1, 2026.
- Existing graduate students may retain Grad PLUS eligibility for up to three additional academic years or until the completion of their current program, whichever comes first.
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- Graduate students may borrow up to $20,500 per year, with a lifetime aggregate limit of $100,000.
- Students in Professional programs, such as our Law School’s JD program, will have a higher annual Unsubsidized Loan limit of $50,000 and a lifetime limit of $200,000. The specific criteria and the official list of qualifying professional programs are being finalized through the ED's negotiated rulemaking process.
- Eligibility for part-time students is expected to be prorated based on enrollment status. We are awaiting clarification from the ED on the specific method of calculation.
Key Details Awaiting Final Clarification
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- We await clarification on whether existing graduate students must have had a Grad PLUS loan disbursement or if a Federal Unsubsidized Loan disbursement is sufficient to have access to pre-OBBBA federal student aid.
- It is unclear whether existing graduate students in professional programs can also access the new $50,000 Unsubsidized Loan cap instead.
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- The new legislation includes a provision requiring the pro-ration of annual loan eligibility based on a student's enrollment level if it is less than full-time.
- We are awaiting guidance on the method that will be used to calculate eligibility.
- There is uncertainty about whether this will apply to both Undergraduate and Graduate Students.
Financial Aid
[email protected]
718-817-3800
Student Accounts
[email protected]
718-817-4900
Student Employment
[email protected]
718-817-3820
Admissions
General: [email protected]
International: [email protected]
Transfer Students: [email protected]
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