Federal Financial Aid Changes Under the One Big Beautiful Bill Act (OBBBA)
Bennington College is closely monitoring guidance from the U.S. Department of Education and other federal agencies. Because implementation details continue to evolve, some information may change as additional guidance is released.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, includes significant changes to federal student aid programs.
Most of these changes take effect on July 1, 2026, and will affect students receiving federal financial aid during the 2026–2027 academic year and beyond.
This page provides an overview of the federal changes currently expected to affect Bennington students and their families.
Undergraduate Students and Families
Federal Pell Grant Eligibility
Beginning with the 2026–2027 academic year, changes to federal law may affect Pell Grant eligibility.
Student Aid Index (SAI) Threshold
Students may no longer be eligible for a Federal Pell Grant if their Student Aid Index (SAI) exceeds twice the maximum Pell Grant amount for the award year.
For the 2026–2027 academic year, students with an SAI of $14,790 or higher are generally not eligible for a Pell Grant.
Students Receiving Significant Grant or Scholarship Aid
Federal law now limits Pell Grant eligibility for students whose full cost of attendance is already covered by non-federal grants, scholarships, waivers, or other gift aid.
Bennington awards Federal Pell Grants first as part of its financial aid packaging process before institutional grant assistance is applied. Changes made during the federal verification process may result in a reduction to, or additional Pell grant funding. Aid offers may be adjusted based on verification results.
Cost of attendance* includes:
- Tuition and fees
- Housing and food
- Books and supplies
- Transportation
- Personal and miscellaneous expenses
* See NASFAA’s Glossary of Terms.
Parent PLUS Loan Limits
Beginning July 1, 2026, Parent PLUS Loans will be subject to new borrowing limits.
| Parent PLUS Loan Limits | Amount |
|---|---|
| Annual limit | $20,000 per dependent student |
| Aggregate limit | $65,000 per dependent student |
These limits apply collectively to all parents borrowing on behalf of the same student.
Parent PLUS Legacy Provision
Some families may qualify for a temporary transition provision, sometimes referred to as a "legacy" or "interim exception."
In general, if the student received a Federal Direct Loan for their current program before July 1, 2026, Parent PLUS borrowing may continue under previous rules for a limited period. The U.S. Department of Education continues to guide implementation of these provisions.
Please note that as of June 25, 2026, transfer students will not qualify for the Parent PLUS legacy limits.
Less-Than-Full-Time Enrollment
Federal law now requires student loan eligibility to be prorated for students enrolled less than full-time.
Students must still meet minimum enrollment requirements (6 credits) to qualify for federal loans. The exact impact on loan eligibility will depend on enrollment level and federal implementation guidance.
What Undergraduate Students Should Know
You may see little or no immediate impact unless:
- Your family relies on Parent PLUS Loans.
- You plan to enroll less than full-time.
- Your Pell Grant eligibility is affected by the new federal rules.
- You receive significant outside scholarships or other non-federal gift aid.
Graduate Students
The most significant changes in the OBBBA affect federal borrowing for graduate students.
Graduate PLUS Loans
- If you already borrowed a Graduate PLUS Loan for your current program of study before July 1, 2026, you can continue borrowing for up to 3 more years (or until your program ends).
- If you qualify for the 3-year Graduate PLUS Loan legacy option, you can continue to borrow up to the full cost of attendance for the next 3 years—or until your program ends, whichever is soonest.
Beginning July 1, 2026, Graduate PLUS Loans will no longer be available to incoming graduate students.
Students who begin a new graduate program on or after July 1, 2026, will generally be subject to the new federal borrowing limits and will not have access to Graduate PLUS Loans.
Graduate Federal Direct Loan Limits
Beginning July 1, 2026, graduate students will be subject to new federal loan limits.
| Graduate Student Loan Limits | Amount |
|---|---|
| Annual Federal Direct Unsubsidized Loan limit | $20,500 |
| Aggregate Federal Direct Loan limit | $100,000 |
Lifetime Federal Student Loan Limit
Federal law now establishes a lifetime borrowing limit of $257,500.
This lifetime limit applies to most federal student loans borrowed across undergraduate and graduate study.
Parent PLUS Loans are not included in this lifetime limit.
Graduate and Professional Program Classification
The legislation creates separate federal borrowing categories for graduate and professional degree programs.
Federal agencies continue to guide the classification of specific academic programs under these categories. Bennington College is reviewing current guidance and will provide additional information as it becomes available.
Financing Graduate Education
Students who anticipate needing funding beyond available federal loan limits may wish to explore additional financing options, including employer tuition benefits, state programs, private educational loans, and other resources.
Bennington will continue to provide information about financing options as federal guidance becomes available.
Federal Student Loan Repayment Changes
The OBBBA also makes substantial changes to federal student loan repayment options.
New Repayment Assistance Plan (RAP)
Beginning July 1, 2026, new borrowers will generally have access to:
- A standard repayment plan
- A new income-based Repayment Assistance Plan (RAP)
Existing Borrowers
Borrowers who already have federal student loans may have access to different repayment options depending on whether they borrow additional federal loans after July 1, 2026.
Students with existing federal loans should review their options carefully through Federal Student Aid and consult their loan servicer when repayment begins.
Questions and Support
We understand that changes to federal financial aid programs can create uncertainty for students and families. Our Financial Aid team is actively reviewing federal guidance and will continue updating this page as additional information becomes available.
If you have questions about how these changes may affect your financial aid eligibility or borrowing options, please contact the Office of Financial Aid.