What WCC Students Need to Know About the One Big Beautiful Bill Act (OBBBA)
Beginning July 1, 2026, federal financial aid regulations will change under the One Big Beautiful Bill Act (OBBBA). These updates affect:
- Federal student loan eligibility based on enrollment level
- Parent PLUS Loan borrowing limits
- Federal Pell Grant eligibility and Cost of Attendance rules
Federal Student Loan Changes
Loan Proration Based on Enrollment
If you accept federal student loans, you understand that the amount you can receive depends on your enrollment level. If you are enrolled in fewer than 12 credit hours (less than full-time), your loan may be reduced (prorated) as required by federal law under the One Big Beautiful Bill.
Undergraduate students are considered full-time when registered for 12 or more credits per semester, totaling 24 or more credits during the fall/winter academic year.
Federal Student Loan Aggregate Limits
Federal student loans are also subject to lifetime (aggregate) borrowing limits for undergraduate students:
- Independent undergraduate students: up to $57,500 total in federal student loans.
- Dependent undergraduate students: up to $31,000 total in federal student loans.
These limits apply without regard to any amounts that may have been forgiven, repaid, canceled, or discharged.
How much of my loan will I get?
Loan eligibility is awarded by semester as a percentage of your annual loan limit:
- Students enrolled in 12 or more credits in a semester are eligible for 50% of the annual loan limit for that semester.
- For students enrolled in fewer than 12 credits, eligibility is prorated as follows:
Undergraduate Enrollment (per semester) Percent of Annual Loan Limit Example loan amount for a dependent freshman student (per semester)* 12+ credits 50.00% $2750 10 credits 41.67% $2291 9 credits 37.50% $2062 8 credits 33.33% $1833 7 credits 29.17% $1604 6 credits 25.00% $1375 5-1 credits 0% $0 Swipe left to see full chart
*Loan amounts in this example are based on $2,750, which represents one semester of eligibility for a dependent freshman student with a $5,500 annual loan limit. These are estimated amounts provided for illustration purposes only. Actual loan amounts may vary and are subject to origination fees or other applicable loan reductions.
By accepting your loan, you acknowledge that you understand these enrollment requirements and how they may impact your loan eligibility.
Your loan amount is based on the number of credits you are taking at the time funds are disbursed. If you add, drop, or withdraw classes, your loan eligibility may change. You are responsible for reviewing your schedule and understanding how enrollment changes may affect your financial aid. If you reduce your enrollment after receiving funds, you may be required to repay a portion of your loan. Please contact the Financial Aid Office if you have questions about your loan eligibility prior to making registration changes. The Financial Aid Office can be reached at 734-973-3523 or [email protected].
Parent PLUS Loan Changes
Beginning July 1, 2026, new federal limits will apply to Parent PLUS Loans:
- Annual Limit: $20,000 per dependent student per academic year
- Lifetime (Aggregate) Limit: $65,000 per dependent student
These limits apply per student, and the annual and lifetime caps are combined for both parents. This means that if two parents borrow Parent PLUS Loans for the same student, their total combined borrowing cannot exceed $20,000 per year or $65,000 overall for that student. These limits apply without regard to any amounts that may have been forgiven, repaid, canceled, or discharged.
Previously, parents could borrow up to the full Cost of Attendance (minus other aid). These new caps may impact families who rely on Parent PLUS funding to cover remaining educational expenses.
Federal Pell Grant & Cost of Attendance Changes
Beginning with the 2026–2027 award year:
- Students whose institutional, state, or private scholarships and grants fully cover their Cost of Attendance will no longer be eligible to receive a Federal Pell Grant.
- Students with a Student Aid Index (SAI) equal to or greater than twice the maximum Pell Grant award may not qualify for Pell eligibility
These changes may affect students who previously qualified for Pell Grants while also receiving significant scholarship support.
Stay Informed and Plan Ahead
These changes represent significant updates to federal aid rules. Your eligibility and borrowing ability may be affected depending on your enrollment level, financial profile, and the timing of FAFSA filing and loan applications. Here are a few tips:
- Complete the FAFSA early for the 2026–27 academic year.
- Review your enrollment status each term to anticipate loan eligibility.
- Consult with Financial Aid if you receive significant non-federal aid (like scholarships) that affect Pell Grant eligibility.
For questions about how these changes apply to your situation, contact the WCC Financial Aid Office — we’re here to help you navigate these updates and plan responsibly for your education.
Additional Resources
- Federal Student Aid: “Big Updates to Federal Student Aid”
- National Association of Independent Colleges & Universities (NAICU)
Last updated: 3/11/2026