One Big Beautiful Bill Act: Federal Financial Aid Changes
The One Big Beautiful Bill Act, also known as the Working Families Tax Cuts Act or
OBBBA, changed several federal student aid programs beginning with the 2026–27 academic
year.
The effect of these changes depends on your academic program, enrollment level and
federal borrowing history. Some students and parents may qualify temporarily for the
previous federal loan rules, while others are subject to new loan limits beginning
July 1, 2026.
Ferris State University is continuing to review and implement federal guidance. We
will update this page as additional information becomes available.
Dropping or not beginning a class may reduce your federal loan eligibility or change
a future disbursement. Contact the Office of Scholarships and Financial Aid before
making a schedule change.
Undergraduate loan limits
The standard annual and aggregate Direct Loan limits for undergraduate students have
not changed. The maximum amount depends on the student’s year in school and whether
the student is dependent or independent for federal aid purposes.
Year in school
Dependent student
Independent student*
First year
$5,500
$9,500
Second year
$6,500
$10,500
Third year and beyond
$7,500
$12,500
Undergraduate aggregate limit
$31,000
$57,500
*The independent-student limits also apply to certain dependent students whose parents
are unable to obtain a Parent PLUS Loan.
The subsidized portion of these amounts remains limited to $3,500 for first-year students,
$4,500 for second-year students and $5,500 for third-year-and-beyond students. The
undergraduate aggregate subsidized limit is $23,000.
New lifetime borrowing limit
Students subject to the new rules have a lifetime maximum of $257,500 in applicable federal student loans received across their undergraduate, graduate
and professional education.
This lifetime calculation generally includes Direct and FFEL subsidized and unsubsidized
loans, federal loans borrowed by the student for graduate or professional study, and
Federal Perkins Loans. It does not include Parent PLUS Loans borrowed by a parent.
Repaid, forgiven, canceled or discharged amounts generally still count toward this
lifetime maximum.
Less-than-full-time enrollment
Beginning July 1, 2026, annual Direct Loan limits for students in term-based programs
are reduced when the student is enrolled less than full time. The reduction is based
on the student’s enrollment intensity relative to a full-time course load.
Students must still be enrolled at least half time to receive a Direct Loan.
Contact Financial Aid before you drop a class.
A change in your schedule can reduce your loan eligibility, alter a future disbursement
or create a balance on your student account. The effect depends on the timing of the
change and whether you began attending the class.
For dependent undergraduate students subject to the new rules, Parent PLUS borrowing
is limited to:
$20,000 per academic year for each dependent student
$65,000 total for each dependent student
The $65,000 aggregate limit combines Parent PLUS borrowing by all parents on behalf
of that student, including borrowing at other institutions. Amounts that have been
repaid, forgiven, canceled or discharged still count toward the limit.
The limits apply per dependent student, not separately to each parent.
A parent may still need to meet federal credit and eligibility requirements. If a
Parent PLUS application is denied because of adverse credit, the student may qualify
for additional Direct Unsubsidized Loan funds under existing federal rules.
Some families may qualify temporarily for the previous Parent PLUS rules under the
interim exception described below.
Beginning July 1, 2026, graduate students who do not qualify for the interim exception
are subject to the following limits:
Direct Unsubsidized Loan annual limit: $20,500
Graduate aggregate limit: $100,000
Graduate PLUS Loans: No longer available
Undergraduate loans do not count toward the new $100,000 graduate aggregate limit.
However, applicable undergraduate and graduate loans count toward the separate $257,500
lifetime federal borrowing limit.
Students who were enrolled in their current graduate program by June 30, 2026, and
received a Direct Loan for that program before July 1, 2026, may qualify temporarily
for the previous loan rules.
Graduate students should not assume that the loss of Graduate PLUS eligibility will
automatically be replaced by other aid. Review your financial aid offer and contact
Financial Aid if federal loans do not cover your anticipated costs.
Beginning July 1, 2026, students in federally recognized professional programs who
do not qualify for the interim exception may be eligible for:
Direct Unsubsidized Loan annual limit: up to $50,000
Professional aggregate limit: $200,000
Graduate PLUS Loans: No longer available
Undergraduate loans do not count toward the new $200,000 professional aggregate limit.
Applicable federal loans received across a student’s education still count toward
the separate $257,500 lifetime limit.
Under current federal guidance, the Ferris programs recognized for the higher professional-student
loan limits are:
Doctor of Optometry
Doctor of Pharmacy
Doctor of Nursing Practice
Federal professional-program classifications are currently affected by ongoing litigation
and may change. Ferris will update this information when the U.S. Department of Education
issues new guidance. A program’s classification for these federal loan limits is not
a judgment about the academic or professional value of the program.
Students in other doctoral or graduate programs generally receive the graduate-student
loan limits described above.
Federal guidance calls this an “interim exception.” Students who qualify are sometimes
referred to as legacy borrowers.
You may qualify if both of the following are true:
You were enrolled in the applicable program of study at an institution as of June
30, 2026.
A Direct Loan for that program was disbursed before July 1, 2026.
Receiving a Direct Loan during an earlier award year may satisfy the borrowing requirement.
It was not necessary to receive a 2025–26 loan, provided the loan was for the same
program and the other requirements are met.
How long does the exception last?
The exception applies only during the student’s federally defined “expected time to
credential.” This is generally the shorter of:
Three academic years; or
The published length of the program minus the portion completed before July 1, 2026.
The exception may end sooner if the student completes or leaves the program, changes
to another graduate or professional program, or has a break in enrollment that does
not meet federal requirements.
Additional information
Eligibility is tied to a specific program of study.
Receiving any Direct Loan for the applicable graduate or professional program may
establish the exception; the student did not have to receive a Graduate PLUS Loan.
Undergraduate students generally retain the exception when changing undergraduate
majors.
A student cannot opt out of the exception to use a different set of loan limits.
The federal Common Origination and Disbursement system makes the official determination.
After the exception ends, the student becomes subject to the new limits.
Because these rules are individualized, contact Financial Aid rather than trying to
determine your status solely from your prior loan history.
Beginning July 1, 2026, federal annual loan limits for students enrolled less than
full time in term-based programs are reduced according to a federal Schedule of Reductions.
In general:
Full-time students remain eligible for the full applicable annual loan limit.
Students enrolled less than full time have a proportionally reduced annual loan limit.
Students must be enrolled at least half time to receive Direct Loan funds.
Dropping a class, not beginning attendance or otherwise reducing enrollment may change
eligibility.
A change can affect an upcoming disbursement or create a balance if aid must be adjusted.
The effect depends on the timing and circumstances of the enrollment change.
Contact Financial Aid Before You Drop
Before dropping, withdrawing from or not beginning a class, contact the Office of
Scholarships and Financial Aid. An advisor can help you understand the potential effect
on your loans, grants and student account.
Beginning with the 2026–27 award year, several new rules may affect Federal Pell Grant
eligibility.
Student Aid Index threshold
A student generally cannot receive a Pell Grant if the Student Aid Index is equal
to or greater than twice the maximum Pell Grant award for the year.
For 2026–27:
Maximum scheduled Pell Grant: $7,395
Ineligibility threshold: SAI of $14,790 or higher
A limited exception applies to students eligible under the federal Special Rule for
certain dependents of deceased servicemembers and public safety officers.
Foreign earned income
Foreign earned income excluded from federal taxable income is now added to adjusted
gross income when Federal Student Aid determines eligibility for a maximum or minimum
Pell Grant. This calculation is handled through the FAFSA process.
Other grants and scholarships
A student is not eligible for a Pell Grant when nonfederal grants and scholarships
equal or exceed the student’s federally calculated cost of attendance.
Workforce Pell Grants
The law created Workforce Pell Grants for certain approved short-term programs. Program
eligibility requires federal approval. Ferris will publish information if Ferris programs
become eligible.
Pell Grant eligibility and award amounts depend on multiple factors. Filing a FAFSA
is the best way to receive an official eligibility determination.
If federal aid does not cover your full student-account balance, consider the following
resources:
Private education loans are not federal loans. Students and families should compare
interest rates, fees, repayment terms and borrower protections before applying.
Who handles what?
Office of Scholarships and Financial Aid
Questions about FAFSA results, aid eligibility, loan limits, grants, scholarships
and changes to a financial aid offer Phone: 231-591-2110 Email: [email protected]
Student Financial Services
Questions about charges, billing, payment plans, due dates and remaining student-account
balances Phone: 231-591-3972 Email: [email protected]
FAQ
Am I a legacy borrower?
You may qualify for the federal interim exception if you were enrolled in the applicable
program as of June 30, 2026, and a Direct Loan for that program was disbursed before
July 1, 2026. Eligibility is program-specific and time-limited. The federal Common
Origination and Disbursement system makes the official determination, so contact Financial
Aid for help reviewing your status.
Will dropping a class reduce my loan?
It may. Beginning July 1, 2026, annual loan limits for students in term-based programs
are reduced when enrollment is less than full time. A schedule change can also affect
a future disbursement or other aid. The result depends on the timing of the change,
your remaining enrollment and whether you began attending the class. Contact Financial
Aid before dropping.
Why did my loan amount change?
Common reasons include a change in enrollment, the application of a new annual or
aggregate loan limit, reaching the lifetime borrowing limit, a change in interim-exception
status or an adjustment to your cost of attendance or other aid. Financial Aid can
explain the calculation used for your account.
Can my parent still receive a Parent PLUS Loan?
Yes, if the student and parent satisfy federal eligibility requirements. For students
subject to the new rules, Parent PLUS borrowing is limited to $20,000 per academic
year and $65,000 in total for each dependent student. Families that qualify for the
interim exception may temporarily remain under the previous rules.
Can graduate students still use Graduate PLUS Loans?
Graduate PLUS Loans are no longer available beginning July 1, 2026, unless the student
qualifies for the temporary interim exception. Graduate students who do not qualify
for the exception generally have a $20,500 annual Direct Unsubsidized Loan limit.
What are the limits for professional students?
Students in federally recognized professional programs may be eligible for up to $50,000
annually in Direct Unsubsidized Loans, with a $200,000 professional aggregate limit.
Graduate PLUS Loans are not available unless the student qualifies for the interim
exception. Federal program classifications may change, so students should confirm
their eligibility with Financial Aid.
What happens if federal loans do not cover my bill?
Review Ferris scholarships, payment plans, Parent PLUS eligibility and private education
loan options. A Financial Aid advisor can help you understand available aid; Student
Financial Services can assist with billing and payment-plan questions.
Who should I contact about my aid versus my bill?
Contact the Office of Scholarships and Financial Aid about FAFSA results, eligibility,
grants, scholarships and loans. Contact Student Financial Services about charges,
payment plans, due dates and the amount currently owed.
