The One Big Beautiful Bill Updates

On July 4, 2025, the President of the United States signed the One Big Beautiful Bill Act (OBBBA), which has made some changes to how federal financial aid programs (namely student loans and the Pell Grant) are awarded.

Financial Aid for the 25-26 year (Fall 2025 through Summer 2026) will not be affected.

Changes to Federal Student Loans

Annual loan limits for the 26-27 academic year must now be prorated in direct proportion to the percent of full-time status the student is enrolled. Students enrolled less than the equivalent of full-time by the end of the year will have a lower annual limit. At this time, the Department of Education has not given us specific instructions on how this will affect per-semester loan awarding. We will update once we have additional information.

Lifetime loan limit for undergraduate and graduate loans combined has been increased to $257,500 (increased from $138,500). The undergraduate loan limit is still $57,500. All loans taken out at Schoolcraft are considered undergraduate loans.

Changes to Repayment Plans

For loans taken out after July 1, 2026, there will only be two repayment plans available: a new standard repayment plan and a new income-based repayment plan. All loans must be paid under the repayment plan, so if a student with loans from before July 1, 2026 takes out additional loans, they must choose one of the new repayment plan options.

The previous ICR, PAYE, and SAVE plans will be discontinued by July 1, 2028, and borrowers currently on one of these plans must choose a new repayment plan.

For more information on loan repayment or deferment specific to your situation, we recommend reaching out to your loan servicer.

Changes to the Pell Grant

Students who receive grants or scholarships from non-federal sources (such as the state, the school, or external sources) covering the entire Cost of Attendance are ineligible to receive the Pell Grant, even if they are otherwise eligible.

Students with an SAI that is more than twice the maximum Pell Grant award will be ineligible for the Pell Grant. The currently Pell Grant maximum for 26-27 is $7,395. This means that students with an SAI above 14,790 will be ineligible.