Question 1

What is the maximum Pell Grant for 2026-2027?

Accepted Answer

The maximum Federal Pell Grant for the 2026-27 award year is $7,395. Under the One Big Beautiful Bill Act (OBBBA), Pell Grant eligibility ends when a student's Student Aid Index (SAI) reaches $14,790 — equal to twice the maximum award. Students with an SAI at or above that threshold receive $0 in Pell funds. Awards are prorated based on enrollment intensity, and at least half-time enrollment is required.

Question 2

What SAI makes you ineligible for the Pell Grant in 2026?

Accepted Answer

Under OBBBA, students with a Student Aid Index (SAI) of $14,790 or higher are ineligible for the Federal Pell Grant in 2026-27. This cutoff equals two times the maximum Pell award of $7,395. Students with negative SAI values qualify for the full $7,395 award.

Question 3

What is the Parent PLUS loan limit for 2026?

Accepted Answer

Starting July 1, 2026, the One Big Beautiful Bill Act (OBBBA) caps Parent PLUS loans at $20,000 per year and $65,000 over a lifetime for new borrowers. These limits replace the previous uncapped borrowing up to the school's full Cost of Attendance (COA). Parents who had an active PLUS loan disbursed before July 1, 2026, may qualify for legacy borrower status, which exempts them from the new caps for up to 3 academic years.

Question 4

Are Parent PLUS loan caps retroactive under OBBBA?

Accepted Answer

No. The OBBBA Parent PLUS loan caps — $20,000/year and $65,000 lifetime — apply only to new borrowers whose first Parent PLUS loan is disbursed on or after July 1, 2026. Parents who already had an active Federal Direct PLUS Loan before that date can qualify for legacy borrower status and continue borrowing up to the full Cost of Attendance for up to 3 additional academic years.

Question 5

What is FAFSA legacy borrower status under OBBBA?

Accepted Answer

Legacy borrower status is a protection under the One Big Beautiful Bill Act that exempts qualifying borrowers from the new OBBBA loan caps. To qualify, you must have had an active Federal Direct Loan disbursed before July 1, 2026 and maintain continuous enrollment in the same degree program and level. Legacy borrowers may continue borrowing up to the full Cost of Attendance and retain access to Graduate PLUS loans (for graduate students). Legacy protections last for up to 3 academic years from July 1, 2026, or until the expected completion of your credential, whichever comes first.

Question 6

Does transferring schools affect FAFSA legacy borrower status?

Accepted Answer

Yes. Transferring to a new institution voids FAFSA legacy borrower status under OBBBA. Other conditions that void legacy status include changing your degree level (for example, moving from a bachelor's to a master's program), taking an enrollment gap of more than one academic year, or completing your credential and enrolling in a new program. Minor changes — such as switching a concentration, adding a double major, or changing a secondary major within the same degree level — generally preserve legacy status.

Question 7

Are Graduate PLUS loans eliminated in 2026?

Accepted Answer

Yes. The One Big Beautiful Bill Act eliminates Graduate PLUS loans for new federal borrowers whose first loan is disbursed on or after July 1, 2026. Graduate students who had an active Federal Direct Loan before that date and remain in the same program of study may retain Graduate PLUS access under legacy borrower provisions for up to 3 academic years. New graduate borrowers are limited to Direct Unsubsidized Loans of up to $20,500 per year and $100,000 in aggregate.

Question 8

What federal loans can graduate students get after July 2026?

Accepted Answer

New graduate student borrowers — those without a Federal Direct Loan disbursed before July 1, 2026 — are limited to Direct Unsubsidized Loans under OBBBA. The annual limit is $20,500 and the aggregate limit is $100,000. Graduate PLUS loans are eliminated for new borrowers. Students in professional degree programs (JD, MD, etc.) may borrow up to $50,000 per year and $200,000 in aggregate through Direct Unsubsidized Loans.

Question 9

What is the Repayment Assistance Plan (RAP)?

Accepted Answer

The Repayment Assistance Plan (RAP) is the new income-driven repayment option created by the One Big Beautiful Bill Act for borrowers who take out federal student loans on or after July 1, 2026. RAP replaces IBR, PAYE, SAVE, and ICR for new borrowers. Under RAP, the government waives any interest that your monthly payment does not cover, preventing balance growth. If your payment does not reduce your principal by at least $50, the government contributes the difference. Legacy borrowers (loans before July 1, 2026) can remain on existing IDR plans until 2028, after which they are automatically enrolled in RAP if they do not select a plan.

Question 10

What happened to the SAVE repayment plan?

Accepted Answer

The SAVE (Saving on a Valuable Education) plan, along with IBR, PAYE, and ICR, is eliminated for new federal borrowers whose first loan is disbursed on or after July 1, 2026. Borrowers with loans originated before that date may remain on SAVE and other legacy IDR plans temporarily. The transition deadline is 2028 — borrowers who have not selected a plan by then are automatically enrolled in the new Repayment Assistance Plan (RAP). RAP replaces SAVE as the primary income-driven option and includes an interest-waiver provision: the government covers any monthly interest your payment does not reach.

Question 11

Can bachelor's degree holders get a Pell Grant in 2026?

Accepted Answer

Yes, under OBBBA's new Workforce Pell Grant track. Starting July 1, 2026, individuals who already hold a bachelor's degree or higher can qualify for Federal Pell Grant funds if they enroll in an approved short-term workforce training program. The program must be 8 to 15 weeks long (or 150 to 599 clock hours), in a high-demand field such as healthcare, technology, skilled trades, or advanced manufacturing, and meet minimum completion and job-placement rate thresholds of 70% each. The maximum award is still $7,395 per year.

Question 12

How long does a program need to be for Workforce Pell?

Accepted Answer

To qualify for the OBBBA Workforce Pell Grant, a program must be between 8 and 15 weeks in length, or equivalently between 150 and 599 clock hours. Programs shorter than 8 weeks or longer than 15 weeks do not qualify. The program must also be in a high-demand career field and meet performance thresholds — at least 70% completion rate and 70% job placement rate — as designated by the institution and the Department of Labor.

Question 13

What is the federal student loan lifetime limit under OBBBA?

Accepted Answer

The One Big Beautiful Bill Act establishes a $257,500 lifetime aggregate limit on all Federal Direct Loans combined for new borrowers after July 1, 2026. This cap applies across all loan types — undergraduate, graduate, and Parent PLUS — and does not retroactively affect borrowers who already have loans outstanding. The previous system had separate aggregate limits by loan type with no single overarching cap.

Question 14

What is the FAFSA verification deadline in 2026?

Accepted Answer

Under OBBBA, once an institution formally requests FAFSA verification documents from a student, that student has 45 calendar days to submit the required materials. Failing to meet this deadline voids the entire federal student aid package — including Pell Grants and Direct Loans — which must then be fully reprocessed. This replaces the previous open-ended verification deadline and took effect with FSA system changes on April 26, 2026.

Question 15

Are family farms excluded from FAFSA assets in 2026?

Accepted Answer

Yes. Under OBBBA's FAFSA asset exclusion, family-owned farms that serve as the family's primary residence and are actively operated — not corporate-owned — are excluded from the FAFSA net worth calculation. This exclusion can significantly increase Pell Grant and Direct Loan eligibility for rural families who might otherwise appear asset-rich on paper despite limited liquid wealth. The farm must be the primary residence and must be actively operated by the family to qualify.

Question 16

What counts as a small business for OBBBA Workforce Pell?

Accepted Answer

Under OBBBA, a small business eligible for Workforce Pell employer-partnership provisions is defined as an employer with fewer than 100 full-time equivalent (FTE) employees. Qualifying small businesses may co-sponsor an employee's approved short-term training program and unlock enhanced federal grant provisions. Independent contractors and sole proprietors may also qualify under separate OBBBA provisions.

FAFSA Guide 2026:
One Big Beautiful Bill Act

OBBBA 2026 Federal Student Aid Changes

Workforce Pell Grant for Degree Holders

Parent PLUS Loan Caps under OBBBA 2026

Graduate PLUS Loan Elimination for New Borrowers

$257,500 Federal Aggregate Student Loan Limit

FAFSA 2026 Federal Aid Calculators

OBBBA 2026 Student Loan Policy FAQs

FAFSA Guide 2026:One Big Beautiful Bill Act