Anticipated Financial Aid Changes

FAFSA Application

FAFSA Asset Exemptions

Family-farm and family-owned small business assets will be exempted from the Student Aid Index (SAI) calculation, which is calculated as a result of FAFSA submission

Effective Date: July 1, 2026, starting with the 2026-27 FAFSA

Federal Pell Grant (Graduate, Second-Degree, and Non-Degree Students are not eligible)

Full Cost of Attendance (COA) Scholarships/Grants

Students who receive grants or scholarships from non-federal sources covering their entire COA are ineligible to receive a Pell Grant, even if otherwise eligible for the program

Effective Date: July 1, 2026

Foreign Income and Pell Eligibility

Foreign income must be included in the Adjusted Gross Income (AGI) used to calculate Pell Grant eligibility

Effective Date: July 1, 2026 with the 2026-27 FAFSA

Students with High Student Aid Index (SAI)

Students will not be eligible for a Pell Grant if their SAI exceeds twice the Maximum Pell Grant award 

Example: 2025-26 Pell is $7,395. So if a student’s SAI is >14,790, they will not be eligible for the federal Pell Grant

Effective Date: July 1, 2026

Federal Direct Loan Program

Schedule of Reduction of Annual Loan Limits Due to Attending Less Than Full-Time

On July 4, 2025, the One Big, Beautiful Bill (OB3) was signed into law. Although the regulations are not yet final, they are scheduled to take effect on July 1, 2026. Information contained on this website could change as we receive additional guidance from the U.S. Department of Education.

OB3 reduces the amount of loan funds a student may borrow for an academic year if the student is enrolled, in classes that fulfill degree requirements, on an at least part-time, but less than full-time basis. This impacts all subsidized, unsubsidized, and Graduate PLUS loans. Parent PLUS loans are not impacted.

Full-time enrollment for an undergraduate student is a minimum of 12 financial aid eligible credit hours per semester, for a total of 24 between fall and winter semesters. For graduate students full time enrollment is 8 financial aid eligible credit hours per semester, for a total of 16 total between fall and winter semesters. You must be full-time as of credit lock and remain registered in full-time credits the entire semester to be considered a full-time student.

Students who are not enrolled full-time will have loan eligibility reduced. It is important students register for full-time credits to maximize financial aid  eligibility. If you are thinking about withdrawing from a class(es), please contact the Office of Financial Aid and Scholarships.

It is also important to note no more than 50% of your annual loan eligibility can disburse in the first term of your academic year.

Below are some examples for illustrative purposes. Oakland University uses the Proportional Distribution method for determining loan eligibility.

If you have questions, please contact the Office of Financial Aid and Scholarships.

Undergraduate Student
Example #1

Example #2

Graduate Student
Example #1

Example #2

Annual, Aggregate, and Lifetime Maximum Loan Limits

Graduate PLUS Loan Program

(Graduate PLUS loans are for students working on graduate degrees, not undergraduate students)

Graduate PLUS loan program is eliminated. 

Legacy Provision: If a borrower has a Graduate PLUS loan or Direct unsubsidized loan made (disbursed) before July 1, 2026, while enrolled in a program of study, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.

Effective Date: July 1, 2026

Graduate/Professional (OUWB) Annual & Aggregate Loan Limits

Caps the annual loan limits at $20,500 for graduate students and $50,000 for professional (OUWB) students.

Caps the aggregate limit at $100,000 for graduate students and $200,000 for professional (OUWB) students. These aggregates do not include amounts borrowed as undergraduate students. Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and professional school.

Legacy Provision: If a borrower has a Direct Unsubsidized Loan made (disbursed) before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less. Expected time to credential example: If a student's published program length is 2 years, and the student has attended 2 years, the student is no longer eligible for the Legacy Provision. 

Effective Date: July 1, 2026

Federal Loan Program Lifetime Limits 

(For all undergrad, graduate, and professional loans - excluding Parent PLUS loans)

$257,500 lifetime borrowing limit on all federal loans.

Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.

Effective Date: July 1, 2026

Parent PLUS Annual & Aggregate Loan Limits

(Parent PLUS loans are for dependent undergraduate students)

All parents (combined between parents) may borrow up to $20,000 per year per dependent student and up to a $65,000 aggregate limit per dependent student.

Legacy Provision: If a borrower has a Parent PLUS loan made (disbursed)  or the student for whom they are borrowing has a Federal Direct loan made (disbursed) before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits (up to Cost of Attendance) for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less. Expected time to credential example: If a student's published program length is 4 years, and the student has attended 4 years, the student is no longer eligible for the Legacy Provision.

Effective Date: July 1, 2026

Loan Schedule of Reduction

Institutions will be required to follow a schedule of reductions with regards to annual loan amounts in direct proportion to the percent of full-time status the student is enrolled. Students who attend less than full-time will be subject to a reduced amount of federal Direct student loan funds. Full-time enrollment for undergraduate students is 24 credit hours between the fall and winter semesters. Graduate student full-time enrollment is 16 credit hours between the fall and winter semesters. The amount of the reduction will be calculated as the number of registered credit hours divided by the defined full-time enrollment hours. No more than half the annual amount can be received in a semester.

Effective Date: 2026-2027 award year.

Student Loan Repayment

Standard Repayment Plan

Standard plans will be available with fixed payment terms of 10, 15, 20 or 25 years based on the amount borrowed.

Effective Date: July 1, 2026

Repayment Assistance Plan (RAP)

Monthly payment amount is between 1-10% of the borrower’s income, based on their Adjusted Gross Income. $10 minimum monthly payment. 30-year repayment period. If a borrower makes an on-time payment that reduces their principal by less than $50, ED will cover the difference, up to the amount paid. Interest will not accrue on unpaid balances.

Effective Date: July 1, 2026

Repayment Plans for Current Borrowers

Current borrowers with no new loans made after July 1, 2026, are eligible to enroll in the current Standard, Graduated, Extended, or current Income Based repayment plans, and may also opt into the new RAP.

Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a different repayment plan by July 1, 2028. 

Effective Date: July 1, 2026

Repayment Options for Parent PLUS & Consolidation Loans

Certain consolidation loans made on or after July 1, 2026, are only eligible for the RAP or standard repayment plans.

A consolidation loan repaid using an Income Driven Repayment plan between July 1, 2026 and June 30, 2028 would not be eligible for RAP and must be repaid under the standard plan. A consolidation loan used to pay off a Parent PLUS is not eligible for RAP and must be repaid under the standard plan.

All new Parent PLUS loans from the effective date must be repaid under the standard repayment plan, they are not eligible for RAP. If a borrower chooses RAP, but has a loan that is not eligible for RAP they must repay the ineligible loan(s) separately.

For borrowers who had borrowed Parent PLUS before July 1, 2026 and subsequently borrowed from the program on or after July 1, 2026, repayment for all loans must be under the same repayment plan, of which the only eligible plan for Parent PLUS borrowers is the standard plan.

Effective Date: July 1, 2026

Loan Deferment Options

Economic hardship and unemployment deferments will not be available.

Legacy Provision: Borrowers with loans made on or before July 1, 2027, are still able to use these deferment options. Once all of the borrower’s loans made prior to July 1, 2027 are paid in full, these options will cease to exist.

Effective Date: July 1, 2027