All Students & Parents

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  • P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA) or the reconciliation bill, signed July 4, 2025, includes significant reforms to federal student aid programs. It changes the eligibility for Pell Grants, sets new limits for federal student loans (including the phase-out of Grad PLUS), requires loan proration for less than full-time enrollment, and introduces a new income-driven repayment option. Most changes are scheduled to begin in the 2026–27 academic year and will be rolled out gradually. Some implementation details still require federal rulemaking, so we’ll share more information as it becomes available.

  • No. If you’re currently receiving aid or are in repayment, your loans and grants remain under their present terms for now. Most changes—including new loan limits and repayment options—will apply starting in the 2026–27 academic year. We are monitoring federal guidance and will update you as details are finalized.

  • If you’re currently enrolled and participating in the student and/or parent loan programs at TXST, there are no changes to the aid you’ve already received.

    If you (or your parent) borrowed a student loan for a term that begins before July 1, 2026, you may be eligible to borrow under the previous loan limits. If you are a graduate student, you may borrow additional Grad PLUS Loans under the previous loan limits to finish your current program of study or for three years, whichever is shorter.

    To be eligible for the previous loan limits (including Grad PLUS), you must be continuously enrolled in your current program of study. If you withdraw or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and/or complete another program.

  • The new law requires annual loan amounts to be prorated in direct proportion to your enrollment status. This change is effective with all loans borrowed for the 2026-27 academic year (undergraduate or graduate). Your eligibility will be determined at the time of disbursement based on the number of credit hours a full-time student is expected to take for the academic year.

    For example, an undergraduate student must take 12 hours per semester for a total of 24 hours academic year to be considered full time.   A freshmen student who is enrolled in 6 hours during the fall semester would be eligible for 25% (6/24) of the annual loan limit of $5,500 ($1,375) in the fall semester.  If this same student enrolled for 9 hours in the spring, the remaining eligibility would be calculated as follows: 6 hours for fall + 9 hours for spring or 15/24 (63%) of the annual loan limit minus the $1,375 received in the fall or $2,090.   Note: Any courses that are dropped during the fall semester after the initial fall disbursement must be considered when calculating the remaining eligibility for the spring disbursement.

  • The new law replaces most existing income-driven repayment plans with a new framework for federal student loan repayment. If you borrow additional loan funds on or after July 1, 2026, your repayment options will be limited to the tiered Standard Plan and the Repayment Assistance Plan (RAP). More details will be available later.

  • If you have borrowed up to the aggregate federal loan limits under current rules, you may not be eligible for additional Federal Direct Loans unless the new law raises the limits for your situation. Federal transition guidance is still pending—we’ll provide updates after new rules are finalized.

  • Yes. The Public Service Loan Forgiveness (PSLF) program will remain in place, and eligible borrowers can continue to work toward forgiveness. The new framework for federal student loan repayment outlined in the new law may make it easier for some borrowers to qualify, especially those with lower incomes. Further details on how PSLF will interact with the new framework are subject to pending rulemaking.

    On October 31, 2025, the U.S. Department of Education (ED) published new regulations changing the definition of a qualifying employer. Effective July 1, 2026, entities that ED determines engage in illegal activities such that the organization has a substantial illegal purpose will no longer be qualifying employers for PSLF. Examples of illegal activities cited in the updated regulations include aiding and abetting violations of federal immigration laws, supporting terrorism, as well as aiding and abetting illegal discrimination. ED will notify borrowers if it determines an employer no longer qualifies.

  • No action is required right now. Your loans and financial aid continue under current rules for the 2025–26 academic year. As changes begin to take effect, mostly starting in the 2026–27 academic year, we’ll provide additional guidance.

Undergraduate Students & Parents

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  • The new law does not change the annual or aggregate loan limits for undergraduate student loans, although undergraduate loans will now count towards the new lifetime limit. 

    • Annual loan limit $5,500-$12,500 based on year in school and dependency status.
    • Aggregate loan limit $31,000-$57,500 based on dependency status.
    • New lifetime loan limit $257,500 includes student borrowing for undergraduate, graduate, and professional study without regard to any amounts repaid, forgiven, canceled, or otherwise discharged. 

  • Yes, however starting in the 2026–27 academic year, new limits apply:

    • Parents will be capped at $20,000 per year and $65,000 lifetime in PLUS borrowing per student.

    If you already have Parent PLUS Loans, you may be eligible to continue borrowing under the old, uncapped rules. We are waiting for the U.S. Department of Education to finalize those details.

  • No. For an undergraduate student to borrow additional unsubsidized loan funds, exceptional circumstances (such as an adverse credit history) must prevent their parent from borrowing a PLUS Loan. Reaching the aggregate borrowing limit is not an exceptional circumstance.

  • Yes. Starting in the 2026–27 academic year, students will no longer be eligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. Pell award amounts will continue to vary based on income and family size, but there is now a firm cutoff tied to the annual Pell maximum. Guidance from the U.S. Department of Education detailing these changes can be found on (APP-25-23) 2026–27 FAFSA Form and Pell Grant Eligibility Updates.

    Also, students who recieve grants or scholarships from non-federal sources (state, private, institutional) covering their entire cost of attendance are ineligible to recieve a Pell Grant, even if otherwise eligible.

  • Generally, federal loan and aid changes under the new law will not affect your TXST scholarship(s). Institutional scholarships are awarded and renewed based on university policies and program criteria. If changes occur to your federal aid (e.g. changes to your Pell Grant) we encourage you to contact us via the TXST One Stop Web Inquiry Form to review the changes and discuss other possible options.

  • No. The new law does not change how students qualify for Federal Work-Study. At this time, Work-Study eligibility will continue to be based on financial need as determined by the FAFSA and institutional packaging policies. Schools will still decide how much Work-Study funding is available and which students are offered it.

Graduate & Professional Students

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  • Grad PLUS Loans are being phased out under the new law.

    New graduate and professional students will no longer be eligible to borrow Grad PLUS for terms that begin on or after July 1, 2026. If you’re already borrowing Grad PLUS before July 1, 2026, you may be allowed to continue under grandfathering rules. We expect further guidance from the U.S. Department of Education.

  • Grad PLUS will no longer be available to new borrowers starting in 2026–27, so it’s important to explore other funding options early. These may include:

  • Starting in the 2026–27 academic year, new federal loan limits will apply to graduate and professional students:

    • Graduate students will be limited to $20,500 per year in unsubsidized loans.
    • Professional students will be limited to $50,000 per year in unsubsidized loans.

    The lifetime cap for graduate-level borrowing will be $100,000, not including any undergraduate loans, and $200,000 for professional program borrowing. If you borrowed before July 1, 2026, you remain eligible for the previous loan limits.

  • TXST does not currently offer any of the below professional programs.

    The distinction between “graduate” and “professional” programs is defined in federal regulation (34 CFR § 668.2) and affects how much you can borrow each year. Professional programs are typically those that signify completion of academic requirements for beginning work or practice in a given profession, are generally at the doctoral level, and lead directly to a degree required for licensure in a recognized profession.  The federal regulations include the following programs in the definition:

    • Pharmacy (Pharm.D.);
    • Dentistry (D.D.S. or D.M.D.);
    • Veterinary Medicine (D.V.M.);
    • Chiropractic (D.C. or D.C.M.);
    • Law (L.L.B. or J.D.);
    • Medicine (M.D.);
    • Optometry (O.D.);
    • Osteopathic Medicine (D.O.),;
    • Podiatry (D.P.M., D.P., or Pod.D.);
    • Theology (M.Div., or M.H.L.); and
    • Clinical Psychology (Psy.D. or Ph.D.)

    All other post-baccalaureate programs—including most master’s and PhD programs—are classified as graduate.

  • No, students who are enrolled in preparatory coursework do not qualify for the legacy borrowing provisions under the One Big Beautiful Bill Act (OBBBA) and would be treated as new borrowers.

Key Timeline Reminders

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Important Notice:

The information provided above reflects our current understanding of federal financial aid changes under the One Big Beautiful Bill Act (OBBBA) and is not intended to be legal advice. Many specifics—including transition rules, eligibility criteria, and implementation timelines—are still subject to federal rulemaking and guidance from the U.S. Department of Education. Policies, processes, and the guidance in this document are subject to change as new details emerge.

For the most recent published guidance, please consult this website, official communications from Texas State University, and federal resources at studentaid.gov.

  • If you have questions about your personal financial aid situation, contact the TXST One Stop.
  • We are committed to supporting our students and will update this page as new information becomes available.

last updated February 3, 2026

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