Important Financial Aid Changes
Federal Student Aid Changes – Effective July 1, 2026
The One Big Beautiful Bill Act (OBBBA) was passed by Congress and signed into law on July 4,2025. The legislation includes significant changes to federal student aid programs affecting undergraduate, graduate, and professional students. Most changes take effect July 1, 2026, for the 2026–2027 academic year. Hondros College of Nursing is awaiting final rules and guidance from the Department of Education and will update this page as more information becomes available.
Undergraduate Federal Direct Loans
What is Changing?
- Students enrolled in less-than-full-time credit hours (6 to 11 credit hours) will have subsidized and unsubsidized loans prorated based on annual credit hours.
- Annual loan amounts must be reduced (prorated) if a student is in a program or final period of study shorter than a full academic year (three terms are in an academic year).
- The OBBBA requires loan reductions for any student enrolled less than full-time during an academic year.
- No changes are being made to annual or aggregate federal loan borrowing limits.
Examples
- Julie: Begins Summer 2026 with 12 credit hours but drops a 3-credit course. HerSummer 2026 aid remains unchanged, but her Fall 2026 loan eligibility will be reduced by 25%.
- David: A first-year independent student enrolled half-time (6 credit hours) for his first three terms. Because he is enrolled half-time, he is eligible for 50% of his annual limit—$4,750.00 instead of $9,500.00.
- Kassidy: A first-year dependent student enrolled 12 credit hours in her first term, 9 credit hours in her second term, and 12 credit hours in her third term. Since Kassidy is enrolled in 9 credit hours in term 2, she will receive 75% of her federal direct loans in the second term.
Legacy Provision for Schedule of Reductions (SOR)
- Borrowers must have a Federal Direct Loan disbursed on or before June 30, 2026, and remain in the same program at the same school.
How Should I Plan My Enrollment?
- With the 2026–2027 rules requiring loan proration for less-than-half-time enrollment, students should plan schedules carefully.
- Dropping classes will affect federal loan amounts in the following term.
Undergraduate PLUS Loan Limits
What is Changing?
- Parent PLUS Loan Limits:
- Annual Limit: $20,000 per student
- Lifetime Limit: $65,000 per student
- PLUS loan eligibility will be prorated if the student is enrolled less than full-time (Less than12 credit hours).
Who is Impacted?
- New undergraduate student borrowers.
- Parent PLUS borrowers who borrowed before July 1, 2026 may continue borrowing up to COA minus other aid for up to three academic years or until the student completes their degree or ceases enrollment.
Federal Pell Grant
- No changes are being made to the Federal Pell Grant at this time.
- Pell eligibility will continue to be based on FAFSA-determined eligibility.
Additional Funding Alternatives
To review additional funding alternatives, visit the Hondros College of Nursing webpage:Scholarships & Private Loans – Hondros College of Nursing