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, the same maximum as the past several years. A full-time student's award is generally the maximum minus their Student Aid Index (SAI), rounded to the nearest $5 — so an SAI of 3,000 points to roughly $4,395. If that math comes out below the $740 minimum award, there is no SAI-based Pell Grant, although some students still receive the maximum or minimum award because their family's income is at or below set percentages of the federal poverty guideline (for example, 175% of it for the maximum award, or 225% for single parents). Under the One Big Beautiful Bill Act (OBBBA), an SAI of 14,790 or more (twice the maximum) rules out Pell entirely. Awards are prorated for less than full-time enrollment.

Question 2

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

Accepted Answer

For most students, Pell eligibility based on SAI alone ends well before OBBBA's cutoff: because the award is the $7,395 maximum minus your SAI, and the smallest award is $740, an SAI above roughly 6,655 produces no SAI-based Pell Grant. Some students with higher SAIs have still qualified for the minimum award through an income test tied to the federal poverty guideline. OBBBA closes that path at the top: starting in 2026-27, an SAI of 14,790 or higher (twice the maximum award) makes a student ineligible for any Pell Grant. An SAI of zero or below qualifies for the full $7,395.

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 total per student. Both parents' borrowing for the same student counts toward the same caps. These limits replace the previous rule that let parents borrow up to the cost of attendance minus other aid. There is a temporary exception: if the student was enrolled as of June 30, 2026, and received a Direct Loan (or the parent received a Parent PLUS Loan on the student's behalf) for that program before July 1, 2026, the old rules continue for up to 3 academic years — as long as the student stays at the same school, seeking the same credential, without a break in enrollment.

Question 4

Are Parent PLUS loan caps retroactive under OBBBA?

Accepted Answer

Loans you already have aren't reduced, but they still matter. The $20,000/year and $65,000 caps apply to Parent PLUS loans for enrollment periods starting on or after July 1, 2026, and the $65,000 total counts everything already borrowed for that student, including loans made before that date. There is one temporary exception, tied to the student rather than the parent: a student who was enrolled as of June 30, 2026, and had a Direct Loan or Parent PLUS Loan for that program before July 1, 2026, lets the parent keep borrowing under the old rules for up to 3 academic years, provided the student stays at the same school, seeking the same credential, without a break in enrollment. Because the exception follows the student, borrowing for a younger sibling who starts college after July 1, 2026 falls under the new caps. Repayment changed too: a parent who takes out any new loan on or after July 1, 2026 can repay all of their Parent PLUS loans only under the Tiered Standard Plan.

Question 5

What is FAFSA legacy borrower status under OBBBA?

Accepted Answer

"Legacy borrower status" is an informal name for what the Department of Education calls the interim exception. It lets qualifying students — and parents borrowing for them — keep the pre-OBBBA loan limits: Parent PLUS and Graduate PLUS up to the cost of attendance minus other aid, and the old graduate Unsubsidized limits. (Undergraduates' own loan limits didn't change.) To qualify, the student must have been enrolled in a program as of June 30, 2026, received a Direct Loan for that program before July 1, 2026 (or, for undergraduates, the parent received a Parent PLUS Loan for it), and remain at the same school seeking the same credential without ceasing to be enrolled at any point on or after July 1, 2026. An approved leave of absence or an optional summer term does not count as a break. The exception lasts for the lesser of 3 academic years or the remaining published length of the program, and it cannot be waived. It covers loan limits only: any new loan first disbursed on or after July 1, 2026 limits all of your Direct Loans to RAP or the Tiered Standard Plan.

Question 6

Does transferring schools affect FAFSA legacy borrower status?

Accepted Answer

Yes. Transferring to a different school ends the interim exception (legacy borrower status), even into the same major, and even from a community college to a four-year school under an articulation agreement. The only transfer-related exceptions are when your school merges into another school, or when your school closes and you transfer under a teach-out agreement. The exception also ends if you change credential level (for example, from a bachelor's to a master's program), complete your credential and start a new program, or stop being enrolled at any point on or after July 1, 2026 — including withdrawing for a term. An approved leave of absence or an optional summer term is not treated as a break. Undergraduates can change majors within the same credential level and keep the exception. Graduate students can change concentration within the same 4-digit CIP code, but switching to a different program, even at the same school, ends it.

Question 7

Are Graduate PLUS loans eliminated in 2026?

Accepted Answer

Yes. The One Big Beautiful Bill Act ends new Graduate PLUS loans starting July 1, 2026, including for students with earlier federal loans who start a new graduate program. Graduate students who were enrolled as of June 30, 2026, received a Direct Loan for that program before July 1, 2026, and stay in the same program at the same school without a break in enrollment keep Graduate PLUS access for the lesser of 3 academic years or the remaining length of the program. Everyone else is limited to Direct Unsubsidized Loans of up to $20,500 per year and $100,000 in aggregate ($50,000 and $200,000 in professional programs).

Question 8

What federal loans can graduate students get after July 2026?

Accepted Answer

Graduate students without the legacy exception can borrow only Direct Unsubsidized Loans under OBBBA: up to $20,500 per year and $100,000 in aggregate for graduate study. Graduate PLUS loans are no longer available to them. Students in programs the Department of Education classifies as professional degrees may borrow up to $50,000 per year and $200,000 in aggregate. After a June 2026 court order, that temporary list covers 29 programs — including law, medicine, dentistry, pharmacy, physician assistant, physical and occupational therapy, audiology, and MSN, DNP, and nurse anesthesia programs — and it may change as the litigation continues.

Question 9

What is the Repayment Assistance Plan (RAP)?

Accepted Answer

The Repayment Assistance Plan (RAP) is the new income-driven repayment plan created by the One Big Beautiful Bill Act. It became available July 1, 2026, and it is the only income-driven plan for loans made on or after that date. Payments run from 1% to 10% of adjusted gross income, minus $50 per dependent, with a $10 minimum. The government covers any interest a full, on-time payment doesn't, and if the payment doesn't reduce principal by at least $50 (or by the payment amount, if smaller), it makes up the difference. Any remaining balance is forgiven after 360 qualifying payments over at least 30 years. Borrowers with older loans can also choose RAP. If all of their loans were disbursed before July 1, 2026, they keep access to IBR, while ICR and PAYE close to them on July 1, 2028; taking out any new loan limits them to RAP or the Tiered Standard Plan.

Question 10

What happened to the SAVE repayment plan?

Accepted Answer

SAVE has ended. On March 10, 2026, a federal court approved a settlement between the Department of Education and the State of Missouri and barred ED from implementing SAVE, and ED is moving every SAVE borrower to a different plan. Loan servicers began sending notices on July 1, 2026, and each borrower has 90 days from the date of their own notice to choose a new plan — IBR, RAP, ICR, PAYE, or a fixed plan. Borrowers who don't choose are placed in the Standard or new Tiered Standard plan, which aren't based on income. You can switch before your deadline by contacting your servicer.

Question 11

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

Accepted Answer

Yes, but only for approved short-term job-training programs. Starting July 1, 2026, OBBBA's Workforce Pell Grant lets students who already have a bachelor's degree receive Pell for an "eligible workforce program." Students who have earned, are enrolled in, or are accepted into a graduate or professional degree program are not eligible. The program must run 8 to 14 weeks and 150 to 599 clock hours, be approved by the state's governor and then by the U.S. Department of Education, and meet 70% completion and 70% job-placement rates. The award is the usual Pell amount (the $7,395 maximum minus your SAI), prorated for the program's short length.

Question 12

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

Accepted Answer

A Workforce Pell program must meet two length tests at once: 8 to 14 weeks of instruction, and 150 to 599 clock hours (or 4–15 semester or 6–23 quarter credits). It also has to be approved by the state's governor, in consultation with the state workforce board, and then by the U.S. Department of Education, and must have been offered for at least a year. To stay eligible, it needs verified completion and job-placement rates of at least 70% and 70%, and tuition no higher than its graduates' value-added earnings.

Question 13

What is the federal student loan lifetime limit under OBBBA?

Accepted Answer

Starting July 1, 2026, the One Big Beautiful Bill Act sets a $257,500 lifetime maximum on the federal loans a student borrows for their own education. It counts undergraduate, graduate, and professional loans, including Grad PLUS and loans made before July 1, 2026, even amounts already repaid. Parent PLUS loans a parent takes out for a child are not counted. Once you reach it, you can't borrow more federal student loans. Students with the legacy exception aren't subject to it during their window. Before OBBBA there was no lifetime maximum, only aggregate limits by level of study.

Question 14

What is the FAFSA verification deadline in 2026?

Accepted Answer

OBBBA did not create a new verification deadline. Each year the Department of Education sets it in a Federal Register notice. For 2026–27, your school must receive verification documents by the earlier of 120 days after your last day of enrollment or September 18, 2027, and schools often set an earlier internal deadline. Separately, a FAFSA draft you start but never submit can be deleted after 45 days of inactivity. That is an FSA system rule, not an OBBBA change and not a verification deadline. If you're selected for verification, respond to your school's request promptly.

Question 15

Are family farms excluded from FAFSA assets in 2026?

Accepted Answer

Yes, if the family lives on the farm. Starting with the 2026-27 FAFSA, OBBBA's changes mean a farm where the family resides is not reported as an asset, while farms the family does not live on are still reported at their net worth. For rural families who look asset-rich on paper but have little cash, this can lower the Student Aid Index and raise Pell Grant eligibility. A family business with 100 or fewer full-time (or full-time-equivalent) employees and a family commercial fishing business are excluded the same way.

Question 16

Does my small business count against my FAFSA eligibility in 2026?

Accepted Answer

Under OBBBA, the net worth of a family-owned business with 100 or fewer full-time equivalent (FTE) employees is excluded from the Student Aid Index (SAI) calculation — so its value doesn't raise your SAI. The business must be owned and controlled by the family. Income from the business is still reported on the FAFSA, but the asset value of the business itself is left out. This exclusion also applies to commercial fishing businesses owned and controlled by the family.

Question 17

When should I file the FAFSA for 2027-28?

Accepted Answer

As soon as you can. The 2027–28 FAFSA opened on September 23, 2026 and uses 2025 tax information. The federal deadline is June 30, 2028, but state and school deadlines come much sooner. Texas's priority date is January 15, 2027 and California's deadline is March 2, 2027, and states such as Illinois, Kentucky, and Vermont award aid until the money runs out, so filing in the fall matters. If you need aid for the current school year, the 2026–27 FAFSA is open until June 30, 2027. Check your state's official date on studentaid.gov's deadline list.

Question 18

What documents do I need to complete the FAFSA?

Accepted Answer

For the 2027–28 FAFSA you will need: a StudentAid.gov account for the student and for each parent (or spouse) the form asks to contribute; the student's Social Security number; 2025 tax information (the IRS transfers most of it directly once each contributor consents, but keep the return handy); records of earnings from work if someone didn't file taxes; child support received; current bank balances and investment values as of the day you sign; and the names of up to 20 schools, which you can search for inside the form. A parent without a Social Security number can still create an account and complete their section.

Question 19

How is the RAP monthly payment calculated?

Accepted Answer

Under OBBBA, the Repayment Assistance Plan (RAP) payment is based on your full Adjusted Gross Income (AGI), not discretionary income. If your AGI is $10,000 or less, the payment is $10 per month. Above that, the rate rises with income in $10,000 brackets: 1% of AGI for $10,001–$20,000, 2% for $20,001–$30,000, and so on up to 9% for $90,001–$100,000 and 10% above $100,000. Divide the annual amount by 12, then subtract $50 for each dependent you claim (the payment won't drop below $10). Because the rate applies to your entire AGI, RAP payments can be higher than legacy IDR plans for some middle-income borrowers and lower for others.

Question 20

What does a negative SAI mean for financial aid?

Accepted Answer

The Student Aid Index (SAI) can go as low as -1,500. Any SAI of 0 or below qualifies an otherwise eligible student for the maximum Federal Pell Grant of $7,395 for the 2026-27 award year. For other federal aid, schools must treat a negative SAI as zero, so a more negative SAI doesn't increase the need-based aid you can receive, and it has no effect on Unsubsidized or PLUS loans. Each college sets its own rules for its own grants.

Question 21

What is the deadline to switch from SAVE to the new RAP plan?

Accepted Answer

It depends on the date of your servicer's notice. Servicers began notifying SAVE borrowers on July 1, 2026, and each borrower has 90 days from their own notice to choose a new plan, so the earliest deadlines fell at the end of September 2026. The earlier July 1, 2028 date no longer applies to SAVE; it is the date ICR and PAYE close to existing borrowers. If you miss your SAVE deadline, you will be placed in the Standard or Tiered Standard plan rather than RAP; ED says borrowers can contact their servicer at any time to enroll in another plan, such as IBR or RAP. Check your servicer account or notice for your exact date.

Federal student aid changes,
explained for parents, students, and borrowers

Start with your situation

Paying for your child's college

Applying for aid and staying eligible

Repaying student loans

What changed in September 2026

OBBBA 2026 Federal Student Aid Changes

Workforce Pell Grant for Short-Term Training

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

In-Depth Guides

OBBBA Is Now in Effect: What Actually Changed on July 1, 2026

What Happens If You Miss the FAFSA Deadline? What to Do Next

Transferring Schools or Taking a Semester Off: Do You Lose the Old Loan Limits?

Withdrawing or Taking Medical Leave: What Happens to Your Federal Aid

Student Aid Index (SAI) Ranges: What Your Number Actually Means

FAFSA Legacy Borrower Status: The Complete 2026 Guide

OBBBA Federal Student Aid Changes: Complete 2025–2026 Timeline

FAFSA 2027–28 Filing Checklist: Everything You Need Before You Submit

The SAVE Plan Has Ended: RAP vs. IBR and What to Do Before Your Deadline

Your Parent PLUS Loan Strategy After OBBBA 2026

FAFSA Dependency Status: When You Can File as an Independent Student

State FAFSA Deadlines for 2027–28: Why They Matter More Than the Federal One

Who Qualifies for the New Workforce Pell Grant?

RAP vs. IBR: A Plain-English Repayment Comparison

Graduate Student Loans After OBBBA: What You Can Still Borrow

Federal student aid changes,explained for parents, students, and borrowers