One Big Beautiful Bill Act Information

What is changing and when?

Beginning July 1, 2026, changes to the law affect how much parents can borrow from the Parent PLUS Loan program for their children’s college education. There are no changes to how much undergraduate students can borrow.

New federal borrowing limits cap the Parent PLUS loan to a new lifetime limit of $65,000 per dependent. To ensure that students have access to equal funding throughout their degree program, Western Kentucky University is limiting the annual Parent PLUS Loan borrowing maximum to $16,250 per year for all undergraduate programs. This limit ensures that funding is equally distributed throughout a student's expected program duration and helps parents to avoid over-borrowing early on during their students' programs.

 

Limited exception

The law allows for a time-limited exception to new loan limits for currently-enrolled students. In order for Parent PLUS Loan borrowers to not be subject to the new loan limits:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• Either:
  • The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026, OR
  • The student must have had a Direct Loan disbursed (subsidized or unsubsidized) for that same program before July 1, 2026.

If the above requirements are met, the new Parent PLUS Loan limits do not apply while the student is completing their program, for up to 3 years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside of scheduled breaks or non-required terms, such as summer).

 

Please refer to the FAQ section on this webpage for more information about the limited exception and other changes.

What is changing and when?

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception. Students who currently depend on Grad PLUS loans to help pay for school should be sure they know whether they qualify for the exception and what conditions could lead to the loss of Graduate PLUS eligibility.

There is a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study. Students who qualify for the limited exception, described below, that allows them to continue to borrow Graduate PLUS loans are also exempt from the new lifetime limits.

 

Limited exception

The law allows some students to continue borrowing from the Graduate PLUS program without being subject to the new aggregate and lifetime borrowing limits under a limited exception through their time to completion, for a maximum of three years. 

Students may qualify for the limited exception if:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• The student must have had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

 

Please refer to the FAQ section on this webpage for more information about the limited exception and other changes.

What is changing and when?

Beginning July 1, 2026, changes to the law will affect the amount graduate students can borrow.

The annual Direct Unsubsidized Loan limit remains unchanged at $20,500. However, there is a new $100,000 cap on the amount of Direct Subsidized/Unsubsidized Loans students can borrow in total (aggregate) for a graduate degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study.

Students who qualify for the limited exception, described below, are exempt from the new Direct Loan aggregate and lifetime limits.

 

Limited exception

The law allows some students to be exempt from the new aggregate and lifetime borrowing limits under a limited exception through their time to completion, for a maximum of three years. 

Students may qualify for the limited exception if:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• The student must have had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

 

Please refer to the FAQ section on this webpage for more information about the limited exception and other changes.

What is changing and when?

Beginning July 1, 2026, changes to the law will affect the amount professional students can borrow. The only program at WKU that meets the federal definition of a professional program is the Doctor of Psychology (Psy.D.) in Applied Psychology.

There is a new, higher annual Direct Unsubsidized Loan limit of $50,000. There is also a new cap of $200,000 on the amount of Direct Subsidized/Unsubsidized Loans students can borrow in total (aggregate) for a professional degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study.

Students who qualify for the limited exception, described below, are exempt from the new Direct Loan aggregate and lifetime limits.

 

Limited exception

The law allows some students to be exempt from the new aggregate and lifetime borrowing limits under a limited exception through their time to completion, for a maximum of three years. 

Students may qualify for the limited exception if:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• The student must have had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

 

Please refer to the FAQ section on this webpage for more information about the limited exception and other changes.

What is changing and when?

Starting with the 2026–27 award year, which beings with the Fall 2026 semester, Direct Loan amounts for students who are not full-time for the academic year must be prorated. Full-time enrollment is determined by a student's enrollment during the academic year, not simply during a single term. Below is the formula used for a student attending a full academic year:

This proration rule applies to all undergraduate, graduate, and professional students utilizing Direct Subsidized Loans, Direct Unsubsidized Loans, and/or Graduate PLUS Loans. Students who qualify for the limited exception as outlined on this webpage are still subject to this proration rule. Students must be enrolled at least half-time during a semester to be eligible for Direct Loans for that semester.

Since this rule only applies to student borrowing, Parent PLUS Loans are not subject to proration for less than full-time enrollment.

Please consult the Department of Student Financial Assistance before adding or dropping courses if you are using Direct Student Loans. If you are enrolled less than full-time at any point during the academic year, your Direct Loan eligibility for the year may be reduced.

 

Please refer to the FAQ section on this webpage for more information about less than full-time loan adjustments.

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For students attending a single term such as spring-only or summer-only: the full, yearly amount of student loans will no longer be available to borrow for a single term. Students will only be able to take out a maximum of 50% of their annual loan eligibility for a single term. Below is the formula used for a student attending a single term:

For example: if you are eligible for a $6,500 Unsubsidized Loan for 2026-2027, and you only attend the spring term, you can only borrow a maximum of $3,250 for that term. If you are less than full-time, this amount will be prorated according to the above formula. Students must be enrolled at least half-time during a semester to be eligible for Direct Loans for that semester.

Please consult the Department of Student Financial Assistance before adding or dropping courses if you are using Direct Student Loans. If you are enrolled less than full-time at any point during the academic year, your Direct Loan eligibility for the year may be reduced.

 

Please refer to the FAQ section on this webpage for more information about less than full-time loan adjustments.

What is changing and when?

Beginning with the 2026-2027 Academic Year, students with an SAI equal or greater than 14,790 are ineligible to receive a Pell Grant.

Some current students who received Pell Grants for the past two years may lose eligibility in 2026-2027 due to this new rule.

What is changing and when?

Beginning with the 2026-2027 Academic Year, students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

Previously, a Pell-eligible student whose full COA was covered by non-federal sources could still receive a Pell Grant in addition to the non-federal aid. This change will mainly affect student-athletes on full-ride scholarships as well as other students whose institutional, state, and/or private aid meet or exceed full COA.

 

What is changing and when?

Beginning with the 2026-2027 Academic Year, foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA. Families already listed foreign income on the FAFSA, but financial aid administrators previously had to manually review and determine if adding the foreign income to the AGI would make the student ineligible to receive the maximum Pell Grant.

This change to the FAFSA makes this an automated process. Some students and families with foreign income who received a Pell Grant for the past two years will lose eligibility in 2026-27.

Students who qualify for the limited exception can lose eligibility in several ways:

 

Breaking Continuous Enrollment

Students who qualify for the limited exception must be continuously enrolled. If a student takes a fall or spring semester off, or if they completely withdraw from the university during a term, they will lose eligibility for the limited exception.

Since summer is considered an optional term at WKU, it is excluded from the continuous enrollment requirement; therefore, students that do not take classes during the summer should not lose eligibility for the limited exception.

 

Three-Year Limit

Students eligible for the limited exception can only retain the exception for three academic years or the remainder of their expected time to credential — whichever is shorter.

 

Changing Programs

For undergraduate students, limited exception eligibility may be lost if a student changes degree type. For example: a student changing from a Bachelor of Arts to a Bachelor of Science would not lose eligibility; however, a student changing from an Associate of Arts to a Bachelor of Arts would lose eligibility.

For graduate students, limited exception eligibility may be lost if a student changes their degree program. For example: if a student changes concentrations within the same Master of Arts program, they should retain eligibility; however, if they change to a separate Master of Arts program, they would lose eligibility.

After three academic years, or earlier if the student withdraws, ceases enrollment, or completes their program of study, they  will become subject to the new annual, aggregate, and lifetime borrowing limits.

Students who were receiving the Graduate PLUS Loan will no longer be eligible to receive those funds.

No. The rules for the limited exception require enrollment in the same degree program at the same institution. If you begin enrollment at WKU in a new degree program after July 1, 2026, you will not qualify for the limited exception.

Additionally, any amount of Parent PLUS Loans you borrowed at your previous institution(s) before entering WKU will count towards your $65,000 lifetime limit under the new rules.

WKU uses the following published program lengths:

• Certificate: One Year
• Associate's Degree: Two Years
• Bachelor's Degree: Four Years
• Master's Degree: Two Years
• Doctoral Degree: Three Years

One academic year is calculated as two semesters. If you attend part-time during a given semester, it still counts as a full semester under the expected time to credential rules.

Talk to the Department of Student Financial Assistance about other financing options such as external scholarships, payment plans, or private loans.

The new Federal Direct Loan rules use an academic year framework. The following are the number of credit hours you must be enrolled in over the course of the academic year to be considered full-time under the new rules:

• Undergraduate: 24 Credit Hours
• Graduate & Professional: 18 Credit Hours

Since the new rules work on an academic year framework, it is possible to enroll part-time during a semester while still being considered full-time for the academic year. For example: if a student enrolls in 9 credit hours during the fall and 15 credit hours during the spring, they are enrolled in 24 hours for the academic year and are considered full-time for Direct Loan purposes.

The summer is still considered part of the academic year, so any enrollment during the summer term is calculated into your total academic year enrollment. For example: if a student enrolls in 9 hours during the fall, 9 hours during the spring, and 6 hours during the summer, that student is enrolled in 24 credit hours for the year and is therefore considered full-time for the academic year for Direct Loan purposes.