Legislative Updates

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One Big Beautiful Bill Act (OBBBA or OB3)

Signed into law: July 4, 2025

The One Big Beautiful Bill Act (OBBBA) is a new federal law that affects funding for many programs. While the law covers a wide range of programs, this page focuses on financial aid. These changes are subject to change pending final regulatory text, which is expected in the first half of 2026. We’re waiting for guidance from the Department of Education on how, when, and for whom the new rules will apply.

This page will be updated as we learn more about the OBBBA. Check back regularly for updates and answers to your questions. If you have a question not answered below, please feel free to email us at finaid@sou.edu.

There are currently no expected changes to Pell Grant amounts for the 2026-2027 school year.

Beginning with the 2026-2027 academic year, SOU will be required to prorate (reduce) federal direct loans for students enrolled less than full-time.

Beginning with the 2026-2027 academic year:

  • The Direct Unsubsidized Loan aggregate limit for students in SOU’s graduate programs will be reduced from $138,500 (including undergraduate loans) to $100,000 (excluding undergraduate loans).
    • Students who enrolled in a graduate program and received Federal Direct Loans prior to July 1, 2026 may continue to borrow under the prior limits for up to three additional years or until they complete their program, whichever occurs first.

Beginning with the 2026-2027 academic year:

  • The Graduate PLUS Loan program will be eliminated.
    • Students who enrolled in and received Federal Direct Loans for a graduate program prior to July 1, 2026 may continue to borrow through the Grad PLUS Loan program for up to three years, or until they complete their program.
  • Parent PLUS Loans will have an annual limit of $20,000 and an aggregate limit of $65,000 per dependent student.
    • Students who enrolled in an undergraduate program prior to July 1, 2026 may continue to receive Parent PLUS loans under current limits if the student or parent previously received Federal Direct Loans for the same program.