2026-27 Changes to Federal Financial Aid
Congress passed the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, which introduced changes to several federal aid programs. Most of these changes become effective on July 1, 2026, and will impact students for the 2026-27 school year.
Please note that the information included below reflects the most current guidance available and is subject to change. The Office of Student Financial Aid will continue to make updates regarding the scope and impact of these changes as we receive additional guidance.
Federal Pell Grant Program
The following changes to the Federal Pell Grant Program take effect on July 1, 2026, for the 2026-27 academic year:
Students who receive grants, waivers or scholarships from non-federal sources (UToledo, 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.
Students with a Student Aid Index (SAI) equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.
Federal Parent and Graduate PLUS Loan Programs
The following changes take effect on July 1, 2026, for the 2026-27 academic year.
Parent PLUS Loan Program
For a Parent PLUS Loan Program, a parent of an undergraduate student may borrow up to $20,000 per year per dependent student with a $65,000 aggregate limit per dependent student without regard to amounts forgiven, repaid, cancelled or discharged.
Legacy provision: If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the student is enrolled in a program of study, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to completion, whichever is less. Note: Transferring schools, withdrawing from all courses, ceasing enrollment or changing degree type (such as associate’s degree to bachelor’s degree) may negate eligibility for the legacy provision. Contact Rocket Solution Central (RSC) to discuss the implications of academic plan adjustments.
Graduate PLUS Loan Program
The Graduate PLUS loan program has been eliminated.
Legacy provision: Graduate student borrowers with a Federal Direct Loan made before July 1, 2026, while enrolled in a program of study, can continue to borrow from the program for 3 academic years or the remainder of their expected time to completion, whichever is less. Note: Transferring schools, withdrawing from all courses, ceasing enrollment or changing degree program may negate eligibility for the legacy provision. Contact Rocket Solution Central (RSC) to discuss the implications of academic plan adjustments.