What students need to know for 2026-2027 and beyond
What Is the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act (OB3 or OBBBA), signed into law on July 4, 2025, introduces significant reforms to federal student aid programs. The information below reflects the most current guidance available and is subject to change as official guidance is updated and received from the Department of Education.
Parents of Undergraduate Students
New Parent PLUS Loan Annual and Aggregate (Lifetime) Limits Beginning July 1, 2026:
- $20,000 per dependent student, per year (annual limit)
- $65,000 per dependent student, in total (aggregate limit)
Parents may qualify for an interim exception to the new loan limits listed above if they have borrowed a PLUS loan or their student has borrowed a Direct Loan (subsidized or unsubsidized) for the same program before July 1, 2026.
Plan Ahead: The new aggregate limit of $65,000 means that borrowing the annual $20,000 maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their undergraduate degree.
Graduate Students
Direct Loan Annual and Aggregate Borrowing Limits
New Graduate Loan Limits Beginning July 1, 2026:
- $20,500 per graduate student, per year (annual limit)
- $100,000 per graduate student, in total (aggregate limit), not including undergraduate borrowing
Graduate students who qualify for the interim exception will be able to continue to borrow Graduate PLUS loans and be exempt from the new Direct Unsubsidized annual, aggregate, and lifetime limits for the timeframes outlined in the legacy provision.
Graduate PLUS Loans
- Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for the interim exception.
Interim Exception to New Borrowing Limits (Legacy Provision)
The legacy provision exists for a maximum of three years and allows some students and parents to continue borrowing using the current Direct Loan, PLUS, and Graduate PLUS program annual and aggregate limits.
Graduate students must meet all of the following requirements to meet the legacy provision:
- The student received a Federal Direct Loan for their current program of study before July 1, 2026.
- The student remains continuously enrolled in the same program of study at Rockhurst as of June 30, 2026.
- The student can only stay in the legacy provision for the earliest of the following times:
- Three years
- Until completion of the current program of study
- Through the published length of the program (if enrolled part-time, students may lose legacy provision before completing their program of study)
- If students change their degree program, they may lose the legacy provision
Parents may be eligible for the limited exception when borrowing a PLUS loan if:
- The student remains continuously enrolled in the same program of study at Rockhurst through graduation, up to three years, or through the published length of the program, whichever occurs first AND
- The parent borrowed and received a Parent PLUS Loan, or the student borrowed and received a Federal Direct Loan (Direct Unsubsidized or Direct Graduate PLUS) before July 1, 2026, in the same program of study.
Undergraduate and Graduate Students Part-Time Enrollment and Loan Eligibility (Schedule of Reductions)
- Beginning with the 2026-2027 academic year, annual federal student loan amounts will be reduced for students enrolled less than full-time. The loan amount will be reduced in proportion to the number of credit hours a student is enrolled in.
- Students taking fewer credit hours than full-time (fewer than 12 credits for undergraduates and fewer than 9 credits for graduate students) will need to plan borrowing carefully as their loan eligibility may be less than the amount they received in previous years.
Updates
Please visit Federal Student Aid for the latest updates.
The Financial Aid Office will continue to track changes and will update this website as new information or official guidance from the Department of Education becomes available. If you have further questions, please reach out to our office. We appreciate your patience as we navigate these changes!
Last updated: May 13, 2026
Financial Aid Office
Rock Stop, Massman Hall
1100 Rockhurst Road
Kansas City, MO 64110
Email: financialaid@rockhurst.edu
Phone: 816-501-4600