Student Finance

Federal Actions: Financial Aid

One Big Beautiful Bill

The Big Beautiful Bill (also known as OBBB) impacts student loans starting July 1st, 2026. Loan limits, options, and repayment for both undergraduate and graduate students are impacted. We are still waiting for the final details of these changes and will be updating our webpage as the final rules are published. The information about the immediate implementation of certain provisions impacting Federal Student Aid Title IV programs under the One Big Beautiful Bill Act can be found here. Updates on the Big Beautiful Bill Act can be found here. 

Below is a preliminary outline of how these loan changes impact current students starting July 1st, 2026. These are all subject to change as more clarification of the final rules is received.

Administrators at PSU, from the President and her staff to individual financial aid counselors and academic advisors, meet regularly to ensure they have up-to-date information from the state and federal administrations, and to review the effect any changes may have on PSU students, faculty, and staff. Regular updates are posted to PSU’s Federal Actions website.

Guidance from the federal government and information about the operations of the U.S. Department of Education are changing over time. Until and unless you hear from PSU or the Department of Education about your financial aid, nothing has changed for you. To understand more about recent news, review the information below.

Student Impact Beginning Fall 2026

In addition to the changes listed below, there are also significant changes to loan repayment and how loans that have been discharged/cancelled/repaid impact future eligibility. We recommend current and former students review the full text of these changes as more details are posted by the Department of Education.

Undergraduate Student Loan Impact

  • Federal loan eligibility will be tied to enrollment level. Students enrolled in fewer than 12 credits will see reduced loan eligibility. Starting in the 2026-2027 aid year, Ford Direct student loan annual limits will be based on the level of enrollment. If a student is enrolled less than full time, they will not be eligible for the full time maximum annual loan limit. It is not yet certain if Parent PLUS loan will also be impacted by this new rule. Example: A junior level independent student has an annual loan limit of $12,500 at full time enrollment (12+ credits per term). At halftime enrollment (6 credits per term) the annual limit is reduced to $6,250.
  • Some students who previously qualified for Pell Grants may no longer be eligible due to revised federal eligibility criteria.
  • New Parent PLUS Loan borrowers will face lower borrowing limits, potentially affecting how families cover educational costs. Starting July 1st, 2026 Parent PLUS loans will have both annual and aggregate limits. The annual limit will be $20,000 and the aggregate limit will be $65,000 per dependent student. There is a legacy provision to allow the parents of continuing students to borrow under the old PLUS limits. The full details of how legacy borrowing will work are not yet clear. It is our current understanding that to qualify as a legacy borrower a student must be enrolled in their program of study and receive their first federal loan disbursement in that program before July 1st, 2026. An undergraduate student may change their major without losing legacy status but they must be continuously enrolled. The maximum legacy extension is 3 academic years or the remainder of their expected time to credential, whichever is less.
  • Continuing borrowers may retain access to certain existing federal loan programs under limited transitional provisions.
  • Future repayment options will be more limited than those currently available.

Graduate Student Loan Impact

  • Federal lifetime borrowing limits will be reduced, potentially affecting students in longer or higher-cost programs. Starting July 1st, 2026 the Ford Direct loan aggregate limit for non-professional graduate students will be $100,000. That $100,000 limit excludes undergraduate loans. The aggregate limits for combined graduate and undergraduate loans has been increased to $157,500 for a nonprofessional student. There are higher limits for professional students but PSU does not currently have a qualifying professional program. Legacy borrowers will continue to be held to the old limits ($138,500 with undergraduate loans included). The full details of how legacy borrowing will work are not yet clear. It is our current understanding that to qualify as a legacy borrower a student must be enrolled in their program of study and receive their first federal loan disbursement in that program before July 1st, 2026. A graduate student would need to be continuously enrolled and not change their program of study. The maximum legacy extension is 3 academic years or the remainder of their expected time to credential, whichever is less. For many graduate students, the new aggregate limits are more beneficial than the legacy limits.
  • Graduate PLUS Loans will no longer be available to new borrowers after July 1, 2026. Continuing borrowers may retain access to certain existing loan programs, including Graduate PLUS Loans, under limited transitional provisions. There is a legacy provision to allow the continuing students to borrow PLUS. The full details of how legacy borrowing will work are not yet clear. It is our current understanding that to qualify as a legacy borrower a student must be enrolled in their program of study and receive their first federal loan disbursement in that program before July 1st, 2026. A graduate student would need to be continuously enrolled and not change their program of study. The maximum legacy extension is 3 academic years or the remainder of their expected time to credential, whichever is less.
  • Students enrolled in fewer than nine credits will have reduced federal loan eligibility. Starting in the 2026-2027 aid year student loan eligibility will be based on the level of enrollment. If a student is enrolled less than full time, they will not be eligible for the full time maximum annual loan limit. Example: A graduate student has an annual loan limit of $20,500 at full time enrollment (9+ credits per term). At halftime enrollment (5 credits per term) the annual limit is reduced to $10,250.
  • Future repayment options will be more limited than those currently available.

Next Steps from the Office of Financial Aid & Scholarships

The Financial Aid Office, in partnership with colleagues across the university, is actively preparing systems, communications, and advising resources to support implementation of these federal changes.

  • One of the most significant shifts is the direct connection between enrollment level and loan eligibility. Under the new regulations, students who enroll less than full time, withdraw, or take a leave of absence may experience substantial changes to their financial aid eligibility.
  • To help students make informed decisions, the Financial Aid Office launched a new enrollment planning tool in myPSU, which students can access. This tool will allow students to report anticipated enrollment so financial aid can be calculated accurately.

Because these changes are complex, enrollment counseling will be particularly important for students who may qualify for transitional or legacy federal loan provisions.

How to Support Students

Encourage students who are considering any of the actions listed below to update their enrollment plans in the financial aid dashboard AND contact the Financial Aid Office for one-on-one counseling about the potential impact of any changes on their financial aid eligibility.

  • Enrolling less than full time
  • Withdrawing from courses
  • Taking a leave of absence or gap term
  • Making significant changes to their academic plans

Early intervention and accurate information will be critical to helping students avoid unexpected financial challenges.

Resources & Support for Students

Phone: (503) 725-3461
Email: askfa@pdx.edu
Zoom (scheduled appointments)
In-Person Drop-In: See Financial Aid Drop-In Counseling hours

Resources & Support for Staff & Faculty

The Financial Aid Office provides training, presentations, and consultations for departments, programs, and student-facing teams to learn or discuss the impact of these changes within your area.

Submit a Training Request about this content

Other Resources

Federal Student Aid: Student Borrower Frequently Asked Questions
Graduate Financial Aid Changes Explained
Undergraduate Financial Aid Changes Explained
NASFAA Loan Repayment Plan Flowchart
NASFAA Graduate Borrowing & Loan Limits Flowchart

 

Frequently Asked Questions

Portland State University will send critical communications to students at their pdx.edu email address, this includes any details about changes to financial aid. Students should also monitor any email account used in the FAFSA or loan repayment process as U.S. Department of Education officials may not have your pdx.edu email address. To review or update your email on studentaid.gov:

  • Log in to your Student Aid account on the studentaid.gov website using your account username or verified email address and your password.
  • Select your first name (or person icon in mobile) in the navigation bar at the top of the page, then select Settings from the dropdown menu.
  • Select Contact Information. Here you'll be able to view or update your email address, mobile phone, alternate phone number, and permanent address.

Pell Grants for the 2024-25 academic year have been awarded and disbursed to students. There is nothing to suggest that this critical funding source for PSU students will change, nor do we believe that the Federal Supplemental Education Opportunity Grant (FSEOG) or Federal Work Study (FWS) will be affected.

We have not seen that availability of the FAFSA has been impacted by changes at the Department of Education. We are encouraging students to file the FAFSA for 2025-2026 as soon as possible. Students are also encouraged to complete the 2026-2027 by the priority deadline of February 1, 2026. 

Students must complete the FAFSA to receive federal financial aid, including the Pell Grant, and to be eligible for Federal Work Study programs.

For mixed-status families — where some members are U.S. citizens or legal residents, and others are undocumented — it's crucial to carefully consider whether to submit identifying information on the FSA ID or FAFSA. These decisions are especially important for families applying for federal financial aid for the first time, as the information shared in these forms can affect eligibility and privacy.

Mixed-status families may have concerns about sharing identifying information due to the potential risks, such as revealing a family member’s immigration status. However, the U.S. Department of Education enforces strict regulations to protect the confidentiality of FAFSA data. Despite these protections, it's important for families to fully understand what information is required and to assess their comfort level before submitting any forms.

More information and other FAFSA resources can be found on the FAFSA Hub for Mixed-Status Families.

Current and former PSU students with federal student loan debt were seeing changes to their loan repayment options before the changes at the Department of Education were announced. Students can connect with their loan servicer for questions regarding repayment options available to current and former PSU students.

Eligibility for many Oregon financial aid programs, like the Oregon Opportunity Grant, leverage information provided in the FAFSA. Disbursement of money to students is controlled by the State of Oregon, not the Federal Department of Education. We do not anticipate issues with financial aid coming from the state.