Updates

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 Student Loans - Schedule of Reduction (SOR) for Less Than Full-Time Enrollment 

As of the Fall 2026 term, federal student loans for students enrolled less than full-time are subject to Schedule of Reduction (SOR) requirements. This means federal student loans for students enrolled less than full-time will be reduced in proportion to a student's actual enrollment. 

At UNT, full-time enrollment is defined as the following:  

• 12 or more hours per term for undergraduate programs
• 9 or more hours per term for graduate programs or enrollment in 3 or more hours of dissertation or thesis (courses numbered 5950/6950/6954) for doctoral or master’s students

Schedule of Reduction (SOR) requirements are applicable to all Subsidized/Unsubsidized Federal Direct Loans and Graduate PLUS loans offered under the legacy provisions.  At least half-time enrollment is still required for receipt of a federal direct loan. 

See Federal Student Loans - Schedule of Reduction (SOR) for details and examples.  Please be advised – there is no legacy provision for Schedule of Reduction (SOR) requirements. 

Parent PLUS Loan – 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: The parent of a dependent student who was enrolled in a bachelor's degree program at UNT and received a federal direct loan for that program prior to 7/1/2026 will be eligible to borrow under the prior Parent PLUS loan limit for a limited exception period under a "legacy provision".  The legacy provision exception period is the lesser of:

• the difference between the total length of the program (e.g. 4 years for a bachelor’s degree) and the time period of the program the student has already completed,
• until the degree is earned, or
• 3 academic years

A break in enrollment toward the applicable degree program will result in a loss of eligibility for the legacy provision.  A break in enrollment for this purpose is one of the following:

• Non-enrollment in a fall or spring term
• A complete withdrawal (official or unofficial) in a fall or spring term

Please note: A change of major for a student seeking a bachelor's degree is not considered a break in enrollment for legacy provision purposes but will not result in an extension to the time length of the program.  

Graduate PLUS Loan – Program Elimination

Beginning July 1, 2026, Graduate PLUS Loans will be discontinued for new borrowers. This means that students in a new program of study as of Fall 2026 or who do not have a federal direct loan disbursed toward a current program of study prior to July 1, 2026 will not be eligible to apply for a Graduate PLUS loan.

Legacy Provision: A student who was enrolled in a graduate program at UNT and received a federal direct loan for that program prior to 7/1/2026 will be eligible to borrow under the Graduate PLUS program for a limited exception period under a "legacy provision".  The legacy provision exception period is the lesser of:

• the difference between the total length of the program (e.g. 2 years for a 30 hour master’s degree) and the time period of the program the student has already completed,
• until the degree or credential is earned, or
• 3 academic years

A break in enrollment toward the applicable graduate program will result in a loss of eligibility for the legacy provision.  A break in enrollment for this purpose is one of the following:

• Non-enrollment in a fall or spring term
• A complete withdrawal (official or unofficial) in a fall or spring term
• A change of program for a graduate student

Federal Direct Loans – Aggregate Loan Limits

Beginning July 1, 2026, the following borrowing limits will be enacted on federal direct student loans for new federal student loan borrowers as well as for students beginning a new program of study.  The aggregate loan limits are program specific and include a $257,500 lifetime (i.e., all degrees/programs) borrowing limit. 

Aggregate Loan Limits - New 

^{*At UNT, this refers to the Clinical Psychology Ph.D. program.}

Legacy Provision: A student who was enrolled in a program of study at UNT and received a federal direct loan for that program prior to 7/1/2026 will be eligible to borrow under the previous ("legacy") aggregate loan limits for a limited exception period.  The legacy provision exception period is the lesser of:

• the difference between the total length of the program and the time period of the program the student has already completed,
• until the degree or credential is earned, or
• 3 academic years

A break in enrollment toward the applicable program of study will result in a loss of eligibility for the legacy provision.  A break in enrollment for this purpose is one of the following:

• Non-enrollment in a fall or spring term
• A complete withdrawal (official or unofficial) in a fall or spring term
• A change of program for a graduate student

Please note: A change of major for a student seeking a bachelor's degree is not considered a break in enrollment for legacy provision purposes but will not result in an extension to the time length of the program.  A student who is eligible for the legacy provision may not opt to borrow under the new aggregate loan limits. 

Aggregate Loan Limits - Legacy