One Big Beautiful Bill Act (OBBB): Federal Student Loan Updates

Need help? This page is maintained by the WPI Office of Financial Aid to provide timely, student-friendly guidance. For official federal guidance, refer to studentaid.gov. Questions? Email finaid@wpi.edu.

• Phased out for new borrowers (effective July 1, 2026): New Grad PLUS loans will not be available for new borrowers after this date.
• Existing borrowers: If you have any Graduate Direct Loan or Grad PLUS Loan disbursed before July 1, 2026, you may remain eligible for Grad PLUS loans for up to three years or until your published program length, whichever comes sooner. No lapses in enrollment are permitted during this period.

• Undergraduate Direct Loans: No changes to annual limits are noted here, but borrowed amounts will now count toward new lifetime limits.
• Parent PLUS Loans (new borrowers starting July 1, 2026): Capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Parent PLUS Loans (existing borrowers): If a Direct Loan was disbursed to the student or a Parent PLUS Loan was disbursed for the student before July 1, 2026, the family may access Parent PLUS under current limits until completion of the current degree or for up to three additional years (whichever comes first). Current limits are up to the Cost of Attendance minus other financial aid.

Combined lifetime maximum: $257,500 for all federal student loans combined, excluding Parent PLUS Loans.

Private loans may be an alternative funding option.

Payment Plan Options

WPI also offers flexible payment plans that allow families to spread payments into manageable monthly installments.

Other Resources

• NASFAA Handout - What Current Parent PLUS Borrowers Need to Know (pdf)
• NASFAA Handout - What New Parent PLUS Borrowers Need to Know (pdf)

Beginning July 1, 2026, loan limits will be prorated depending on enrollment level, similar to Pell grant funding. This means all borrowers enrolled less than full time (minimum of 12 credits) will only be able to borrow loan amounts in direct proportion to their credit load, with a minimum half-time enrollment requirement. There is no legacy provision for this new rule.

Previously federal student loans would disburse in full for students enrolled half time or more. Beginning July 1, 2026, students must be enrolled full time (12 credits) to receive their full loan offer, and the loans will be reduced for every credit below full time (12 credits) until a student is less than half time, at which point the entire loan will be removed.

This process is referred to as a “schedule of reduction” and will be ongoing throughout the semester. If a student drops classes at any point during the semester, the Office of Financial Aid may have to reduce previously disbursed loans to match the new level of enrollment.

Updates: Please check back for updates as more official information becomes available from the Department of Education.

Disclaimer: This page is provided by the WPI Office of Financial Aid to help students understand potential changes related to OBBB. Students should refer to studentaid.gov for official guidance.