2025 Reconciliation Bill: Federal Student Aid Updates - Effective Fall 2026

 

Overview

On July 4, 2025, the 2025 Reconciliation Bill (One Big Beautiful Bill Act) was signed into law, which includes several higher education provisions that will take effect July 1, 2026. For students enrolled at the University of North Texas, the July 1, 2026 changes are effective as of the Fall 2026 semester.

Several elements of the legislation are still under review through the U.S. Department of Education. The following website provides a summary of information on the changes that may impact your financial aid. The Financial Aid & Scholarships office is closely monitoring federal guidance and will update this website as additional details and changes are finalized by the U.S. Department of Education.  

Federal Pell Grant Program

Effective Fall 2026, any student who is receiving grants (other than Pell) and/or scholarships that equal or exceed the student’s full Cost of Attendance (COA) will not be eligible to receive a Pell grant award.

The full Cost of Attendance (COA) includes estimated costs for tuition/fees, books/supplies, housing, meals, transportation and personal/miscellaneous costs. Please see Undergraduate Cost of Attendance (COA) for additional details regarding these estimated costs.   

Federal Direct Student Loans - Proration for Less Than Full-Time Enrollment 

As of the Fall 2026 term, Federal Direct Subsidized/Unsubsidized Loans for students enrolled less than full-time* will be prorated based on actual enrollment. 

*Less than full-time enrollment at UNT:

  • less than 12 hours per term for undergraduate programs
  • less than 9 hours per term for graduate programs

This means the amount of subsidized or unsubsidized loans offered will be reduced in direct proportion to a student’s actual enrollment when enrolled less than full-time.

The following are examples to help illustrate:

Example 1

An undergraduate dependent junior is typically eligible for a maximum of $3,750 in federal direct student loans a semester. As of Fall 2026, if that student enrolls in 6 hours, the maximum loan eligibility will be prorated based on actual enrollment.  In this example:

  • 6 hours / 12 hours = 50% proration
  • $3,750 X 50% = $1,875 
Example 2

A graduate student is typically eligible for a maximum of $10,250 in federal direct unsubsidized loans a semester. As of Fall 2026, if that student enrolls in 6 hours, the maximum loan eligibility will be prorated based on actual enrollment.  In this example:

  • 6 hours / 9 hours = 66.67% proration
  • $10,250 X 66.67% = $6,833

Parent PLUS Loans – Loan Limit Changes

Beginning July 1, 2026, the Parent PLUS Loan has an annual limit of $20,000 per year per dependent student.

Parent PLUS loans will also be limited to a lifetime limit of $65,000 per dependent student. These limits are tied to the student and are not changed if both parents wish to borrow on the student’s behalf (i.e., if both parents wish to take out Parent PLUS Loans – the annual and lifetime limit still applies for each student).

Legacy Provision: If a federal direct loan for a student was disbursed prior to July 1, 2026, the parent can continue to borrow under the prior limits until the degree has been earned or for 3 academic years – whichever comes first.

Graduate PLUS Loan – Program Elimination

Beginning July 1, 2026, Graduate PLUS Loans will be discontinued for new borrowers. This means that students who do not have a federal direct loan disbursed prior to July 1, 2026, will not be eligible to apply for a Graduate PLUS loan.

Legacy Provision: Students who have a federal direct loan disbursed prior to July 1, 2026, will be eligible to continue borrowing under this program until the degree/credential has been earned or for 3 academic years – whichever comes first.

Federal Direct Loan – Aggregate Loan Limits

Beginning July 1, 2026, a $257,500 lifetime (i.e., all degrees/programs) borrowing limit will be enacted on all federal direct student loans. This lifetime limit includes all undergraduate and graduate/professional loans for an individual student but does not include Parent PLUS Loans. Note: different levels of degrees have different aggregate limits – the maximum combined limit is $257,500.

Below are the aggregate/lifetime loan limits for different types of students:

Program Aggregate Limit
Dependent Undergraduate Student $31,000
Independent Undergraduate Student $57,500
Graduate Degree Student $100,000
Professional Degree Student $200,000