"Big changes are on the horizon for federal financial aid and the college students who rely on it. When Congress passed the One Big Beautiful Bill Act last summer, included among the extended tax breaks and an increase on some universities' endowment taxes was a slate of new provisions aimed at the federal student aid system. The changes could result in billions of dollars less in spending on student loans," The Columbus Dispatch reports.

... "For undergraduate students, Jill Desjean — director of policy analysis with the National Association of Student Financial Aid Administrators — said there's good news and bad news. The good news is that their loan limits haven't changed. The bad news is that what is changing could greatly affect students attending higher-cost schools."

... "That's because the new law did change how much parents and caregivers can borrow to support their undergraduate students' education. Previously, parents could use a Parent Plus loan to finance the whole cost of their child's attendance once other student aid was exhausted."

"But under the new law, Parent Plus loans are capped at $20,000 a year, or a lifetime total of $65,000 per student. Desjean said those already enrolled in the program are exempt from the caps for three years and the annual limits only apply to new borrowers."

... "Though there were many proposed cuts to Pell Grant eligibility in the One Big Beautiful Bill Act, Desjean said there were relatively few changes actually made to the largest federal grant program for low- and middle-income students. Those that did go through, however, are significant."

"Another change address who is eligible for Pell Grants. Anyone who receives a scholarship large enough to cover the full cost of attendance, like some student athletes, will no longer be eligible for Pell. Desjean said Pell still is considered 'first dollar,' however, meaning students enrolled in programs like the Columbus Promise wouldn't be affected."

"Students will also be ineligible for Pell if their families have a lot of assets but appear to earn little income on a Student Aid Index calculation. Desjean said these grantees, known as "Pellionaires," are an extremely small subset of students that never should have been eligible in the first place."

... "The current number of student loan repayment options varies depending on who you ask, Desjean said. Some say seven, others say its in the teens."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 1/8/2026