One Big Beautiful Bill Act FAQs

P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA) or the reconciliation bill, signed July 4, 2025, includes significant reforms to federal student aid programs. It changes the eligibility and amounts for Pell Grants, sets new limits for federal student loans (including the phase-out of Grad PLUS), requires loan proration for less than full-time enrollment, and introduces a new income-driven repayment option. Most changes are scheduled to begin in the 2026–27 academic year and will be rolled out gradually. Some implementation details still require federal rulemaking, so we’ll share more information as it becomes available.

No. If you’re currently receiving aid or are in repayment, your loans and grants remain under their present terms for now. Most changes—including new loan limits and repayment options—will apply to new borrowing starting in the 2026–27 academic year. We are monitoring federal guidance and will update you as details are finalized.

The new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year. Your eligibility will be determined at the time of disbursement based on the number of credits a full-time student is expected to take for the academic year.
For example, a graduate student is typically expected to take six credits a semester for a total of 12 credits during the fall/spring academic year. A student enrolled in six credits during the fall semester would be eligible for 50 percent (9/18) of the annual loan limit of $20,500 ($10,250) for the fall. A student who enrolls in three credits for the fall semester (6/18) would be eligible for 25 percent of the annual loan limit of $20,500 ($5,125) for the semester.

The new law replaces most existing income-driven repayment plans with a new framework for federal student loan repayment. If you borrow additional loan funds on or after July 1, 2026, your repayment options will be limited to the tiered Standard Plan and the Repayment Assistance Plan (RAP). More details will be available later.

If you have borrowed up to the federal loan limits under current rules, you may not be eligible for additional Federal Direct Loans unless the new law raises the limits for your situation. For dependent and independent undergraduate students, loan caps will increase slightly for new borrowing after the law takes effect, but this does not apply retroactively. Federal transition guidance is still pending—we’ll provide updates after new rules are finalized.

Yes. The Public Service Loan Forgiveness (PSLF) program will remain in place, and eligible borrowers can continue to work toward forgiveness. The new framework for federal student loan repayment outlined in the new law may make it easier for some borrowers to qualify, especially those with lower incomes. Further details on how PSLF will interact with the new framework are subject to pending rulemaking.

On October 31, 2025, the U.S. Department of Education (ED) published new regulations changing the definition of a qualifying employer. Effective July 1, 2026, entities that ED determines engage in illegal activities such that the organization has a substantial illegal purpose will no longer be qualifying employers for PSLF. Examples of illegal activities cited in the updated regulations include aiding and abetting violations of federal immigration laws, supporting terrorism, as well as aiding and abetting illegal discrimination. ED will notify borrowers if it determines an employer no longer qualifies.

No action is required right now. Your loans and financial aid continue under current rules for the 2025–26 academic year. As changes begin to take effect, mostly starting in the 2026–27 academic year, we’ll provide additional guidance.

• Undergraduates will have an aggregate loan limit of $57,500, including any loans borrowed prior to attending Antioch.
• If you’re getting close to your cap, the financial aid office can help you assess your remaining eligibility. These changes will begin to take effect with the 2026–27 academic year.

Yes, but starting in the 2026–27 academic year, new limits apply:

• Parents will be capped at $20,000 per year and $65,000 lifetime in PLUS borrowing per student. If you already have Parent PLUS Loans, you may be eligible for grandfathering under the old, uncapped rules. We are waiting for the U.S. Department of Education to finalize those details.

Yes. Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on the 2026–27 FAFSA Form and Pell Grant Eligibility Updates.

No. The new law does not change how students qualify for Federal Work-Study. At this time, Work-Study eligibility will continue to be based on financial need as determined by the FAFSA and institutional packaging policies. Schools will still decide how much Work-Study funding is available and which students are offered it.

Grad PLUS Loans are being phased out under the new law.
New graduate and professional students will no longer be eligible to borrow Grad PLUS for terms that begin on or after July 1, 2026. If you’re already borrowing Grad PLUS before July 1, 2026, you may be allowed to continue under grandfathering rules. We expect further guidance from the U.S. Department of Education.

Starting in the 2026–27 academic year, new federal loan limits will apply to graduate and professional students:

• Graduate students will be limited to $20,500 per year in unsubsidized loans.
• Professional students (such as those in the Psy.D. program) will be limited to $50,000 per year in unsubsidized loans. The aggregate limit for graduate-level borrowing will be $100,000, not including any undergraduate loans, and $200,000 for professional program borrowing. If you borrowed before July 1, 2026, you remain eligible for the previous loan limits.

The distinction between “graduate” and “professional” programs is defined in federal regulation (34 CFR § 668.2) and affects how much you can borrow each year. Professional programs are typically those that signify completion of academic requirements for beginning work or practice in a given profession, are generally at the doctoral level, and lead directly to a degree required for licensure in a recognized profession, such as medicine (MD).

• Clinical Psychology (Psy.D.)

All other post-baccalaureate programs—including most master’s and PhD programs—are classified as graduate.

Grad PLUS will no longer be available to new borrowers starting in 2026–27, so it’s important to explore other funding options early. These may include:

• Institutional scholarships or work-study positions
• A historical list of private education lenders used by Antioch students
• Employer-sponsored education benefits or public service programs
• Monthly payment plans through the Student Accounts office
• External scholarships or fellowships

If you expect to need more funding than the new federal loan limits allow, contact financial aid to discuss options that may fit your program and timeline.

Most changes take effect starting with the 2026–27 academic year. That includes new loan limits, the phase-out of Grad PLUS, and changes to Pell Grant eligibility.

We’ll post updates on this website as new details become available.

• Contact financial aid with questions about your specific situation at [email protected] or 937-909-1852.
• Monitor announcements from the U.S. Department of Education at studentaid.gov.
• Keep an eye on school communications, as some programs may publish program-specific updates.