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Effective Wednesday, July 1, 2026, Pell Grant changes include:

• The foreign earned income exclusion will be included in the adjusted gross income when calculating Pell eligibility.
• Students receiving nonfederal scholarships or grants covering the full Cost of Attendance will be ineligible to receive Pell funding.
• Students with a Student Aid Index (SAI) equal to or greater than twice the maximum Pell award for the year will be ineligible for Pell funding (limited exceptions apply).

Example: If the maximum Pell amount for 2026-2027 is $7,395, and a student has an SAI of 14,790 or greater, the student will not be eligible for a Federal Pell Grant.

Loan Amounts and Enrollment Status

Loan funding amounts will be prorated for less than full-time enrollment. If you are enrolled less than full-time, you will only be eligible for a reduced amount of loan funding. Only degree applicable coursework will determine enrollment status.

Lifetime Borrowing Loan Cap

A lifetime borrowing limit will be established on all federal student loans (undergraduate, graduate, and professional).

Beginning July 1, 2026, new Parent PLUS loan borrowers may borrow up to $20,000 per year and $65,000 in total per dependent student.

The Working Families Tax Cuts Act replaces most existing income-driven repayment plans with a new framework.

Income-Driven Repayment Plans Eliminated

The Working Families Tax Cuts Act removes:

• Pay As You Earn (PAYE)
• Saving on a Valuable Education (SAVE)
• Income-Contingent Repayment (ICR)

If You Borrowed Before Wednesday, July 1, 2026

Your options are not changing right away. You can continue using the following plans:

• 10-year Standard Repayment Plan
• 10-year Graduated Repayment Plan
• 25-year Extended Repayment Plan

If you are currently on one of the following three income-driven plans, you can remain on these plans until 2028.

• Pay As You Earn (PAYE)
• Income Contingent Repayment (ICR)
• Income Based Repayment (IBR)

IMPORTANT: Borrowers must switch to a new eligible plan by July 1, 2028.

If you borrow on or after Tuesday, July 1, 2026

You will have two repayment plans to choose from:

• Standard Repayment Plan
  • Fixed monthly payments.
  • Repayment period of 10–25 years, depending on loan balance.
• Repayment Assistance Plan (RAP)
  • Income-driven payments will be set at 1 percent to 10 percent of adjusted gross income.
  • $10 minimum monthly payment if income is under $10,000 per year.
  • Remaining balance may be forgiven after 30 years.