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One Big Beautiful Bill Act

  1. Financial Aid | Events, Dates, Deadlines
  2. FAFSA®
  3. Types of Aid
    1. Scholarships
    2. Promise Scholarship
    3. Grants
    4. Loans
    5. Maryland State Aid
    6. Federal Work Study
  4. Cost of Attendance
  5. Frequently Asked Questions
  6. Resources and Forms
  7. One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, introducing revisions to several federal student aid programs.

Changes to federal financial aid that may affect your eligibility.

Although federal guidance is still forthcoming, the following changes are scheduled to begin July 1, 2026:

  1. Federal Direct Loan amounts will be reduced proportionally for students enrolled less than full-time. Students registered for fewer than 12 credits may see a decrease in loan eligibility based on their actual enrollment level.
  2. New Federal Parent PLUS Loan Borrowers, for new borrowers, Federal Parent PLUS Loans will be capped at: $20,000 per academic year, and $65,000 aggregate limit per dependent student
  3. For eligible students, non-federal grants and scholarships that cover the complete cost of attendance (COA) may prevent students from receiving a Pell Grant, even if they are otherwise eligible for the program.
  4. Federal loan repayment options will be streamlined into two plans:
    • A new tiered Standard Repayment Plan, and
    • A new income-driven repayment option called the Repayment Assistance Plan (RAP).

We understand that federal policy changes can raise important questions. The College's financial aid office continues to monitor guidance from the U.S. Department of Education and provide updates as they become available.

To learn more about the One Big Beautiful Bill Act, refer to the government's Student Aid website .

 

One Big Beautiful Bill Act Questions & Answers

How will my federal Direct Loan eligibility be affected if I am not full-time?

Federal Direct Loan amounts will now be prorated based on your enrollment status.

  • Full-time students (12+ credits): No change.

  • Less-than-full-time students (<12 credits): Loan amounts will be reduced based on the percentage of full-time enrollment.

    Example: If you are enrolled half-time (6 credits), your Direct Loan eligibility may be roughly 50% of a full-time award.

What are the new Federal Parent PLUS Loan limits?

For new borrowers, the One Big Beautiful Bill Act introduces both annual and aggregate borrowing limits:

  • Annual limit: $20,000 per dependent student per academic year
  • Aggregate limit: $65,000 total per dependent student

Existing borrowers prior to July 1, 2026, are not affected by these new limits.

Can I still receive a Pell Grant if I have non-federal grants or scholarships?

Possibly not. If your non-federal grants and scholarships fully cover your Cost of Attendance (COA), you may no longer be eligible for a Federal Pell Grant, even if you meet other Pell Grant eligibility requirements.

What changes are being made to federal loan repayment plans?

Borrowers on one of the standard plans, including the extended standard and graduated standard, will see no changes to repaying their loans. Borrowers on income-driven repayment plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP. After July 1, 2028, only two income-driven repayment plans will be available:

  1. Tiered Standard Repayment Plan – a traditional repayment structure with fixed payments over time.
  2. Repayment Assistance Plan (RAP) – a new income-driven repayment plan that adjusts monthly payments based on your income.

Harford Community College partners with ECMC Solutions to provide free counseling and repayment guidance.

When do these changes take effect?
All provisions of the One Big Beautiful Bill Act begin July 1, 2026. Students who borrow after this date may be subject to the new rules.
Where can I get more information?
Federal Student Aid One Big Beautiful Bill Act Updates  https://studentaid.gov/announcements-events/big-updates