Federal Impacts on Financial Aid
The One Big Beautiful Bill (OBBB) Act was signed into law July 4, 2025, and has some direct impacts on federal financial aid programs, including new loan limits, loan repayment options, and eligibility requirements for current and future students.
Most changes go into effect July 1, 2026 for the 2026-2027 academic year and beyond. Review the on the One Big Beautiful Bill.
Carnegie Mellon remains committed to meeting full demonstrated financial need for undergraduate students and to affordability initiatives like the 麻豆村 Pathway Program.
Please note that information provided on this webpage is subject to change based on final regulations and any future guidance from the Department of Education. Carnegie Mellon will continue to monitor federal impacts and will provide updates on this webpage, as necessary.
Impacts for Graduate Students
Limited Exception (Legacy or Grandfathering)
Some current students may qualify for a limited exception that allows them to continue borrowing federal loans under the previous rules.
To qualify, students must:
- Be enrolled in the same degree program as of June 30, 2026
- Remain continuously enrolled in that same program (students who withdraw or take a leave lose eligibility)
- Have received a federal loan for that same program before July 1, 2026
Incoming graduate students beginning their program in fall 2026 are not eligible for the limited exception.
The limited exception is available for the shorter of:
- Three academic years, or
- The student’s remaining time to complete their degree
Students are not eligible if they have already been enrolled in their program for the full program length. For example: A student’s program is two years in length and the student has been enrolled in the program for two years. This results in no limited exception eligibility and the new loan limits/rules apply.
Students who qualify for the limited exception may continue to:
- Borrow Graduate PLUS Loans up to the cost of attendance minus other financial aid
- Borrow up to $20,500 annually in Unsubsidized Loans
What has changed?
- Students who do not qualify for the limited exception will no longer be eligible for Graduate PLUS Loans.
- There are new for graduate and professional students. New federal loan limits include:
Graduate Unsubsidized Loans:
- Annual limit: $20,500
- Lifetime limit: $100,000
Professional Program Loans:
- Annual limit: $50,000
- Lifetime limit: $200,000
Based on current federal definitions, Carnegie Mellon does not offer programs classified as professional programs. Private loans may be an alternative funding option for graduate students.
What stays the same?
The bill does not impact Carnegie Mellon institutional aid, and the financial aid application process remains the same.
Other Resources
Impacts for Undergraduate Students
Limited Exception (Legacy or Grandfathering)
Some current students may qualify for a limited exception that allows their family to continue borrowing Parent PLUS Loans under the previous rules.
To qualify, students must:
- Be enrolled in the same degree program as of June 30, 2026
- Remain continuously enrolled in that same program (students who withdraw or take a leave lose eligibility)
- Have received a federal loan for that same program before July 1, 2026
Incoming undergraduate students beginning their program in fall 2026 are not eligible for the limited exception.
The limited exception is available for the shorter of:
- Three academic years, or
- The student's remaining time to complete their degree
Students are not eligible if they have already been enrolled in their program for the full program length. For example: A student’s program is four years in length and the student has been enrolled in the program for four years. This results in no limited exception eligibility and the new loan limits/rules apply.
What Has Changed?
Parent PLUS Loans now have new annual and aggregate :
- Annual limit: $20,000 per student
- Lifetime limit: $65,000 per student
These limits apply per student, not per parent. For example, if a student has two parent borrowers, the combined annual maximum is still $20,000.
Private loans may be an alternative funding option.
Pell Grant Changes
The Pell Grant program now includes updated eligibility requirements based on a student's Student Aid Index (SAI) and FAFSA information.
Changes include:
- Family-owned businesses with fewer than 100 employees, family farms, and family-owned commercial fisheries no longer need to be reported as FAFSA assets.
- Foreign income reported on a Schedule 1 tax form is now included in adjusted gross income for Pell Grant eligibility.
- Students with an SAI above twice the maximum Pell Grant award are no longer eligible for Pell Grants.
- Students whose full cost of attendance is covered by non-federal grants or scholarships are not eligible for Pell Grants.
What Stays the Same?
Federal Subsidized and Unsubsidized Loan for undergraduate students have not changed, though they may be reduced for students enrolled less than full time.
In addition, these changes do not impact Carnegie Mellon institutional aid, and the financial aid application process remains the same at 麻豆村.
Other Resources
Impacts for All Students
Schedule of Reduction for Federal Loans (for those enrolled less than full time)
Beginning with the 2026–2027 academic year, most federal student loans will be reduced if a student enrolls less than full time. This policy is called the Schedule of Reduction (SOR).
The SOR applies to all federal student loans — including students who qualify for the limited exception (“grandfathering”) — except Parent PLUS Loans.
At Carnegie Mellon, full-time enrollment is 36 units per semester for undergraduates and typically 36 units per semester for graduate students. Students enrolled below full time will have their annual loan eligibility reduced based on their enrollment level.
For example:
- A student enrolled in 48 units during the academic year
- Full-time enrollment for the year = 72 units
- 48 ÷ 72 = 67% enrollment level
This means the student would be eligible to borrow approximately 67% of their annual federal loan limit.
Examples:
- Graduate Unsubsidized Loan:
$20,500 annual limit → approximately $13,735 eligible amount - Second-Year Undergraduate Subsidized Loan:
$4,500 annual limit → approximately $3,015 eligible amount
Loan eligibility is calculated when the loan is disbursed.
Lifetime Federal Loan Borrowing Limit
A new lifetime federal student loan borrowing limit of $257,500 will apply to all Federal Direct student loans borrowed across all levels of study. This limit does not include Parent PLUS Loans.
The lifetime limit includes loans that were repaid, forgiven, canceled, or discharged.
Students who qualify for the limited exception are not subject to this new lifetime limit.
New Repayment Plans
Students who borrow a federal loan after July 1, 2026 will have access to only two repayment options:
- Tiered Standard Repayment Plan
- Repayment Assistance Plan
Parent PLUS Loans are not eligible for the Repayment Assistance Plan. Plans and eligibility are outlined on the website.
Students who do not borrow a new federal loan after July 1, 2026 may still have access to previous repayment plan options. .
Next Steps & Planning
If you plan to borrow federal loans, consider the following:
- Your federal loan eligibility may be reduced if you enroll less than full time
- Review whether you qualify for the limited exception (“grandfathering”)
- Compare the to understand how your borrowing may change
If federal loans will not fully cover your educational costs, private loans may be an alternative option. Carnegie Mellon provides a historical list of private lenders but does not maintain a preferred lender list. Students may choose any lender and should borrow only what is needed.
Payment Plan Options
Carnegie Mellon also offers flexible payment plans that allow families to spread payments into manageable monthly installments.