One Big Beautiful Bill Act Federal Student Aid Changes

You are currently enrolled in an undergraduate program and will continue in the 2026-27 academic year

What is changing:

Federal Direct Parent PLUS Loan Limits

There will be updated annual and lifetime borrowing limits for Federal Direct Parent PLUS Loans. These limits are per student, not parent borrower.

• Annual: $20,000 per year, per student
• Total Aggregate: $65,000 per student

If you are planning on borrowing over these limits, please meet with your financial aid counselor to consider private loan options. 

Additional information on how OBBB will impact current Federal Direct Parent PLUS Loan borrowers can be found here - OBBB Changes for Current Parent PLUS Loan Borrowers.  

Reduced Annual Loan Limits for Part-Time Enrollment

Students borrowing Federal Direct Loans who are registered or reduce under the full-time credit load (3 Dickinson credits/12 credit hours) may have their federal loans prorated accordingly. 

• Example A: Student A registers for 1.5 credits at Dickinson (6 credit hours). Since this is half of the full-time credit load, their Federal Direct loans will need to be prorated by 50%.
• Example B: Student B registers for 3 credits at Dickinson (12 credit hours), but drops down to 2 credits (8 credit hours) during add/drop. Since the reduction was during the add/drop period, their enrollment status is adjusted and they are now less than full-time. Due to this, their loans will be prorated by their new credit load (8 credit hours or 66%). 
• Example C: Student C registers for 3 Dickinson credits (12 credits) in fall, but drops down to 2 Dickinson Credits (8 credits) halfway through the semester. If they register for 3 Dickinson credits (12 credits) in spring, their spring loans will need to be prorated because their annual credit load (5 Dickinson Credits/20 credit hours), is under the annual full-time credit load (6 Dickinson Credits/24 credit hours). 

What is staying the same:

Federal Direct Undergraduate Loan Limts

There will be no change to the current Federal Direct Subsidized and Unsubsidized loan limts

• Annual: $5,500 - $12,500 (based on year and dependency status)
• Total Aggregate: $31,000 (dependent) or $57,500 (independent)
• For more information on Federal Direct Undergraduate loans, please go to the U.S. Department of Education webpage

Federal Direct Parent PLUS Loan Eligbility Requirements

Parents applying for a Federal Direct Parent PLUS loan must not have any adverse credit history and must unfreeze their credit (if frozen). 

Exceptions for Current Students (aka legacy or grandfather provisions):

Your parent(s) may continue borrowing Parent PLUS loans under prior limits for up to 3 academic years (or the remainder of your academic program, whichever is less) if -

• you are continuously enrolled at the same instituition as of June 30, 2026, and
• you or your parent(s) previously borrowed a federal loan for your academic program, and
• you remain in the same academic program through graduation

There will be no exceptions made to the reduced annual loan limits for students enrolled less than full-time. This will go into effect on July 1, 2026. 

You will be starting an undergraduate program in the Fall of 2026 or later

Federal Direct Undergraduate Student Loans

No Change: Federal Direct Loan Loan Limits

• Annual: $5,500 - $12,500 (based on year and dependency status)
• Total Aggregate: $31,000 (dependent) or $57,500 (independent)
• For more information on Federal Direct Undergradaute loans, please go to the U.S. Department of Education webpage

Changing: Reduced Annual Loan Limits for Part-Time Enrollment

Students borrowing Federal Direct Loans who are registered or reduce under the full-time credit load (3 Dickinson credits/12 credit hours) may have their federal loans prorated accordingly. 

• Example A: Student A registers for 1.5 credits at Dickinson (6 credit hours). Since this is half of the full-time credit loan, their Federal Direct loans will need be prorated by 50%.
• Example B: Student B registers for 3 credits at Dickinson (12 credit hours), but drops down to 2 credits (8 credit hours) during add/drop. Since the reduction was during the add/drop period, their enrollment status is adjiusted and they are now less than full-time. Due to this, their loans will be prorated by their new credit load (8 credit hours or 66%). 
• Example C: Student C registers for 3 Dickinson credits (12 credits) in fall, but drops down to 2 Dickinson Credits (8 credits) halfway through the semester. If they register for 3 Dickinson credits (12 credits) in spring, their spring loans will need to be prorated because their annual credit load (5 Dickinson Credits/20 credit hours), is under the annual full-time credit load (6 Dickinson Credits/24 credit hours). 

If you are planning on borrowing over these limits, please meet with your financial aid counselor to consider private loan options. 

Federal Direct Parent PLUS Loans

Changing : Federal Direct Parent PLUS Loan Limits

There will be updated annual and lifetime borrowing limits for Federal Direct Parent PLUS Loans. These limits are per student, not parent borrower.

• Annual: $20,000 per year, per student
• Total Aggregrate: $65,000 per student

If you are planning on borrowing over these limits, please meet with your financial aid counselor to consider private loan options. 

Additional information on how OBBB will impact current Federal Direct Parent PLUS Loan borrowers can be found here - OBBB Changes for New Parent PLUS Loan Borrowers.  

You are currently in-school and have not started repaying your loans

Undergraduate Loan Borrowers with no new loans on or after July 1, 2026

Your loan terms will not be changing, but your repayment options will change.

Available Options After July 1, 2026

• Standard Repayment Plans (Standard 10 Year, Extended, and Graduated)
  • 10 - 25 years of payments depending on plan
  • Pays loan off the fastest and you will typically pay less in interest. 
  • Monthly payments are usually higher
• Repayment Assistance Plan (RAP)
  • Income-based payments with a minimum payment of $10 a month
  • Forgiveness after 30 years
• Income-Based Repayment (IBR)
  • Only available for borrowers who borrowed before July 1,2026 and do not take out another federal student loan after July 1, 2026
  • Payments capped at 10% of discretionary income 
  • Forgiveness after 20 years
  • If eligble, will offer the lowest monthly payment

Public Service Loan Forgiveness (PSLF)

The following are the current PSLF requirements until further notice

Requirements

• Full-time work for a qualifying employer
• Payments made under a qualifing payment plan 
• 120 payments

Transition

• Payments made on the SAVE/PAYE/ICR plans should still count
  • You must select a new plan by the July 1, 2028
  • RAP and IBR are expected to qualify as well

Federal Direct Parent PLUS Loans taken prior to July 1, 2026

• Parent Borrowers must use the Standard Repayment Plan (no penalty for early repayment)
• May not use RAP
• May consolidate to access ICR, but must transition out of ICR by June 30, 2028

Undergraduate Loan Borrowers with new loans on or after July 1, 2026

Repayment Options After July 1, 2026 for Federal Direct Loan Borrowers

• Standard Repayment Plans (Standard 10 Year, Extended, and Graduated)
  • 10 - 25 years of payments depending on plan
  • Pays loan off the fastest and you will typically pay less in interest. 
  • Monthly payments are usually higher
• Repayment Assistance Plan (RAP)
  • Income-based payments with a minimum payment of $10 a month
  • Forgiveness after 30 years
• Income-Based Repayment (IBR)
  • Only available for borrowers who borrowed before July 1,2026 and do not take out another federal student loan after July 1, 2026
  • Payments capped at 10% of discretionary income 
  • Forgiveness after 20 years
  • If eligble, will offer the lowest monthly payment

Repayment Options After July 1, 2026 for Federal Parent PLUS Loan Borrowers

• Parent Borrowers must use the Standard Repayment Plan (no penalty for early repayment)
• May not use RAP

You're currently repaying your student loans or are in deferment/forbearance

Transition To New Repayment Plans

The One Big Beatiful Bill Act is bringing changes to the student loan repayment landscape for current and future borrowers. The repayment plan information below is subject to continuing interpretation, guidance, and policy updates. 

Available Options After July 1, 2026

• Standard Repayment Plans (Standard 10 Year, Extended, and Graduated)
  • 10 - 25 years of payments depending on plan
  • Pays loan off the fastest and you will typically pay less in interest. 
  • Monthly payments are usually higher
• Repayment Assistance Plan (RAP)
  • Income-based payments with a minimum payment of $10 a month
  • Forgiveness after 30 years
• Income-Based Repayment (IBR)
  • Only available for borrowers who borrowed before July 1,2026 and do not take out another federal student loan after July 1, 2026
  • Payments capped at 10% of discretionary income 
  • Forgiveness after 20 years
  • If eligble, will offer the lowest monthly payment

Repayment Options After July 1, 2026 for Federal Parent PLUS Loan Borrowers

• Parent Borrowers must use the Standard Repayment Plan (no penalty for early repayment)
• May not use RAP

You are currently enrolled and planning on attending grad school in 2026 or beyond. Dickinson College does not currently offer any graduate programs. This information is for our current students considering graduate school. 

Federal Student Loans:

Graduate PLUS Loans will no longer be available as of July 1, 2026

New Loan Limits for Federal Direct Graduate Loans

If you are planning on borrowing over these limits, please consider private loan options. 

Reduced Annual Loan Limits for Part-Time Enrollment

If you enroll in less than a full time credit load (12 credit hours), in most cases your annual loan limit will be prorated.