Aid Types
Financial Aid Updates: What You Need to Know
Working Families Tax Cut Act (formerly known as the ONE BIG BEAUTIFUL BILL ACT) OVERVIEW
Notice: Updated June 2026
This page will be updated as new information becomes available to provide our campus community with the most current and accurate guidance.
(formerly known as the One Big Beautiful Bill Act) is a federal law that changes some rules related to federal financial aid programs. These changes are being implemented nationwide starting on July 1, 2026 and apply to colleges and universities across the country.
No immediate action is required 鈥 please continue attending classes and meeting enrollment requirements. The USF Office of Financial Aid will be following up with students who may be impacted by the changes.
Types of Aid Impacted
Impacts differ based on the different types of aid you use.
WHAT'S CHANGING:
Federal Loans
- New Loan Limits:
- Enrollment Status Matters:
- Eliminated Loan:
- Repayment Options Updated:
Pell Grants
- Reduced Pell Grants For Students Who:
WHAT'S NOT CHANGING:
- Federal Direct Subsidized Loan Limits and Federal Direct Unsubsidized Loan Limits for Undergraduate Students
- Florida Bright Futures Scholarships
- Florida Student Assistance Grant (FSAG)
- Florida Residency Requirements
- Institutional Scholarships Funded by the University
Federal Loan Changes
Direct Parent PLUS Loans
What's Happening:
Parent PLUS loans are no longer unlimited. Starting July 1, 2026, they will now have both annual and aggregate (lifetime) borrowing limits.
Please be aware:
- Each of your parents can take out Parent PLUS loans on your behalf, but the combined total amount must not exceed the loan limits listed below.
- Loan limits are per student, meaning that they only apply to you as an individual and are not combined with your siblings.
|
Annual Loan Limit (Total Yearly Allowance) |
Lifetime Maximum Aggregate Loan Limit (Total Lifetime Allowance) |
|---|---|
|
$20,000 per student
|
$65,000 per student
|
Note: This loan is only eligible for the Standard Repayment Plan, not the Repayment Assistance Plan. This means that you鈥檒l need to repay on a standard timeline without income-based relief options.
What to Expect:
If you think you may exceed the borrowing limit, please contact the Office of Financial Aid as soon as possible to explore your options. You may need to explore private loans if your need exceeds your federal loan limits.
- For current students with a Federal Direct loans or Parent PLUS Loan before June 30: You may quality for an interim exception which would allow your parent to borrow up to your Cost of Attendance. The Financial Aid office will make this determination.
Graduate and Professional Students Lifetime Federal Loans
What's Happening:
- The government is updating how it defines 鈥済raduate鈥 vs. 鈥減rofessional鈥 students,
and some programs may be reclassified as a result.
- Professional programs at USF include Pharmacy (Pharm.D), Clinical Psychology (Psy.D. or Ph.D.), and Medicine (M.D.).
- All other master's and doctoral programs are considered graduate degrees.
-
New loan limits will be set based on whether you鈥檙e classified as a graduate or professional student. This includes all Federal Direct Unsubsidized loans and Federal Graduate PLUS loans borrowed while at a graduate/professional level.
| Type of Borrower | Revised Annual Loan Limit (Total Yearly Allowance) | Revised Maximum Graduate/Professional Aggregate Loan Limit |
|---|---|---|
| Graduate Student (You have never been a professional student) |
$20,500 | $100,000 |
| Graduate Student (You have been a professional student) |
$20,500 | $100,000 (excludes up to $100,000 previously borrowed as a professional student) |
| Professional Student (You have never been a graduate student) |
$50,000 | $200,000 |
| Professional Student (You have been a graduate student) |
$50,000 | $200,000 (includes any amount previously borrowed as a graduate or professional student) |
What to Expect:
If you think you may exceed the borrowing limit, please contact the Office of Financial Aid as soon as possible to explore your options. You may need to explore private loans if your need exceeds your federal loan limits.
Loan Changes for Full-Time vs. Part-Time Enrollment
What's Happening:
Loan limits will be adjusted based on how much you鈥檙e enrolled (full-time vs. part-time). This requirement begins with the Fall 2026 term.
Please be aware:
- If you drop below full-time enrollment after the add/drop period, your Federal Direct
loan amount may be reduced for current or future terms.
- Example: Undergraduate students enrolled half time (6 credits) may qualify for up to 50% of the full-time loan amount, since full-time enrollment is defined as 12 credits.
- Dropping or withdrawing from a course may reduce federal loan eligibility. Students should check with an academic advisor before making changes to their course schedule.
- You must be enrolled at least half-time to qualify for a federal student loan.
What to Expect:
The Financial Aid Office will begin adjustment of student loans for students who are not enrolled full time approximately one month prior to the start of the term.
Direct Graduate PLUS Loan Elimination
What's Happening:
Starting July 1, 2026, graduate and professional students will no longer be able to take out Direct Graduate PLUS Loans.
What to Expect:
Only Direct Unsubsidized Loans will still be available, which may reduce the total amount students can borrow.
- For new students starting after July 1: You won鈥檛 be able to get a Direct Graduate PLUS Loan and will need to rely on Direct Unsubsidized Loans or consider a private loan.
- For current students with a Direct Graduate PLUS Loan before June 30: You may be able to keep your Direct Graduate PLUS eligibility, up to 3 years or the remaining time to the published length of your program, whichever comes first.
Repayment Options
What's Happening:
new borrowers:
Starting July 1, 2026, new borrowers will have two primary repayment plan options. Here's a breakdown of each option:
Tiered System Repayment Plan:
- How You'll Pay: Fixed monthly payments
- This does not take your income into account, but focuses on how much you owe and how quickly you can pay it back.
- How Long You Have to Pay Back Your Loan (Repayment Term):
- If you borrow less than $25,000, you will repay your loan over 10 years.
- If you borrow more than $100,000, you may have up to 25 years to repay your loan.
- Borrowers with balances between these amounts will have repayment terms that fall within that range.
Repayment Assistance Plan:
- How You'll Pay: Payments are monthly and based on your adjusted gross income (AGI). Monthly payments range from 1% to 10% of your income, with a $10 minimum.
- How Long You Have to Pay Back Your Loan (Repayment Term):
- There鈥檚 no fixed repayment term.
- Any remaining balance is forgiven after 30 years (360 qualifying payments).
- Plan Conditions:
- Monthly payments decrease by $50 for each dependent claimed.
- Payments are always required monthly. There is no $0 payment option.
- Unpaid interest is waived and not added to your balance.
- At least $50 of each payment goes toward your principal.
current borrowers:
- If you borrow no new loans after July 1, 2026, you can keep these plans: Standard, Graduated, Extended, and Income-Based Repayment.
- These plans end July 1, 2028: Income-Contingent, Pay As You Earn, and Saving on a Valuable Education. If you鈥檙e enrolled in one, you must switch before then, or you鈥檒l be automatically moved to the Repayment Assistance Plan (if eligible).
Pell Grant Changes
Receive Other Scholarships
What's Happening:
If your scholarships or other non-federal grants already cover your full cost of attendance (like tuition, housing, and other expenses), you won鈥檛 receive additional money from the Pell Grant.
What to Expect:
Some students who currently get Pell Grant funds as a refund may no longer receive that money if their other aid already covers all their costs.
Please be aware if you count on the refunds to cover other expenses that this may not continue, and you may need to find other sources of income to supplement these funds. Contact our Financial Wellness department as soon as possible if you think you may be impacted by these changes.
Have an SAI Above 14,790
What's Happening:
If your is at least two times the maximum Pell grant award of $7,395 (which will be $14,790 and above), you will not be eligible for the Pell grant.
How to find your SAI:
- Log into your account dashboard
- In the My Activity section, select your processed FAFSA submission form
- Select View FAFSA Submission Summary
- On the Eligibility Overview tab, select the Student Aid Index card
What to Expect:
You won鈥檛 be eligible for a Pell grant if your Student Aid Index (SAI) is too high, even if your income is considered low. Please note: This does not apply to students who qualify for a Pell grant under the Special Rule (dependent whose parent or guardian died in the line of duty while serving as a public safety officer or in the U.S. Armed Forces after September 11, 2001).
Contact our Financial Wellness department as soon as possible if you think you may need to find other income sources due to this impact.
Need Help?
You don鈥檛 have to figure this out on your own. We understand that financial aid changes can feel overwhelming. Our commitment is to provide clear, accurate information and to support you every step of the way.