Federal Actions: Financial Aid

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.

Frequently Asked Questions

How will I know if my financial aid might be affected? 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 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.

Has anything changed regarding federal financial aid? The majority of 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.

Can I still file the FAFSA? We have not seen that availability of the FAFSA has been impacted by changes at the Department of Education, however, the massive reduction in staff could cause disruption in FAFSA availability going forward. Therefore, we encourage students to file the FAFSA for 2025-2026 as soon as possible.

Is there any specific guidance for mixed-status families? 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.

Are there changes coming to student loan repayment? 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.

Has financial aid from the State of Oregon changed? 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. 


The Big Beautiful Bill and Loan Changes

The Big Beautiful Bill (also known as OBBB) impacts student loans starting 07/01/2026. 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 7/1/26. These are all subject to change as more clarification of the final rules is received.

Undergraduate Student Loan Impact

1. Loan amount adjustments for less than fulltime enrollment 
Starting in the 26/27 aid year, Ford Direct student loan annual limits will be based on the level of enrollment. If a student is enrolled less than fulltime, they will not be eligible for the fulltime 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 fulltime enrollment (12+ credits per term). At halftime enrollment (6 credits per term) the annual limit is reduced to $6,250.

2. Parent PLUS Loan Limits 
Starting 07/01/2026 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 07/01/2026. 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.

Graduate Student Loan Impact

Graduate Student Loan Impact

1. Aggregate Limits 
Starting 07/01/2026 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 07/01/2026. 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.

2. Loan amount adjustments for less than fulltime enrollment 
Starting in the 26/27 aid year student loan eligibility will be based on the level of enrollment. If a student is enrolled less than fulltime, they will not be eligible for the fulltime maximum annual loan limit.
Example: A graduate student has an annual loan limit of $20,500 at fulltime enrollment (9+ credits per term). At halftime enrollment (5 credits per term) the annual limit is reduced to $10,250.

3. Elimination of the Graduate PLUS loan for non-legacy borrowers 
The Graduate PLUS loan will not be available to students starting 07/01/2026*

*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 07/01/2026. 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.

Additional Changes

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.