One Big Beautiful Bill Act

No, the new policies will not affect any of your federal aid paid before July 1, 2026. Aid disbursed prior to this date will not be impacted by the new laws. Future eligibility is dependent upon certain criteria, though. Please continue reading to ensure you understand how the changes may impact you.

To be considered a Legacy student, otherwise known as “grandfathering”, for pre-OBBBA loan exceptions you must meet the following criteria:

• Be enrolled at Stevens in a program of study as of June 30, 2026

• Remain enrolled in that program of study after June 30, 2026

• Have a Federal Direct Loan paid to your account for your current program of study before July 1, 2026 and within the 2025-2026 award year

• Be within your “expected time to credential”

“Expected time to credential” (ETTC) is the number of semesters/years remaining in your program minus the semesters/years you’ve already completed. Legacy students will preserve their pre-OBBBA federal loan eligibility for three years, or their published program length minus their time enrolled, whichever is less.

Undergraduate example of ETTC expiration:

The student is in an undergraduate program that has a published program length of 4 years.

The student completes their fourth year at the end of 2025-26 but needs to return for a fifth year in 2026-27 to complete the program. See their undergraduate timeline in the chart below.

In Year 5, the student’s exception expires because the published length of their program was 4 years, and they exceeded it. In Year 5, this student will be subject to the new loan limits.

Graduate example of ETTC expiration:

The student is in a graduate program that has a published program length of 2 years.

The student completes their first year at the end of 2025-26 and is scheduled to return for their second year in 2026-27.

In Year 3, the student’s exception expires because the published length of their program was 2 years, and they exceeded it. In Year 3, this student will be subject to the new loan limits and will lose any Graduate Plus Loan eligibility.

Yes, beginning with the 2026-2027 academic year, federal student loan amounts will be reduced, or prorated, based on a student’s enrolled credits. Students enrolled less than full-time in a semester and/or academic year will not be eligible to borrow the full annual loan limit.

The amount a student borrows will be prorated in direct proportion to your enrollment status. This will apply to Federal Direct Subsidized, Unsubsidized, and Graduate Plus Loans. Parent Plus Loans will not be prorated.

Full-time enrollment definitions at Stevens:

• Undergraduates: 12 credits per semester

• Graduate and Doctoral students: 9 credits per semester

*Please remember that students who are enrolled less than half-time in a semester are ineligible for Federal Direct Loan funding.

Less than half-time enrollment definitions at Stevens:

• Undergraduates: Registration less than 6 credits per semester

• Graduates: Registration less than 4.5 credits per semester

Beginning with the 2026–27 FAFSA, certain assets no longer need to be reported.

Excluded Items Include:

• Net worth of a family-owned business with fewer than 100 full-time employees

• Net worth of family-owned and controlled commercial fishing business assets and related expenses

• Net worth of farms where the family resides

• Students with a Student Aid Index (SAI) that exceeds twice the maximum Pell Grant award ($7,395) are no longer eligible for the Federal Pell Grant. An SAI of 14,790 is twice the maximum of the Pell Grant for the 2026-27 award year.

• Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are not eligible to receive a Pell Grant.

• The foreign earned income exclusion will be added to the adjusted gross income (AGI) when calculating Pell eligibility.

• Beginning July 1, 2026, new Parent PLUS loan borrowers may borrow up to:

  • $20,000 per year per dependent student

  • $65,000 lifetime limit per dependent student

• Legacy Borrowing Provision (continuing students): If you received a Federal Direct Loan payment in the 2025-26 award year, and were enrolled at Stevens in a matriculated program of study before July 1, 2026, you meet the legacy borrowing criteria. Your parent may be eligible to borrow a Parent Plus Loan under the prior Parent PLUS loan rules for up to three academic years or through the remainder of the student’s expected time to completion, whichever is shorter.  
  *See the Expected Time To Completion section for details on this.

• The Graduate PLUS program will be discontinued as of July 1, 2026. Students starting their program in the 2026-27 award year will be ineligible for this loan.

• Legacy borrowing provision (continuing students): If you received a Federal Direct Loan payment in the 2025-26 award year, and were enrolled at Stevens in a matriculated program of study before July 1, 2026, you meet the legacy borrowing criteria. You can continue to borrow under the previous loan limits for one academic year or the remainder of their expected time to degree completion, whichever is less.  

*Please see the Expected Time to Completion section to understand why we are publishing legacy eligibility for one academic year, instead of the federally published three academic years.

Enrollment-based loan reductions. Direct Subsidized and Direct Unsubsidized Loan limits will be reduced when an undergraduate student enrolls less than full time. At Stevens, undergraduate full-time enrollment is 12 credits per semester.

Lifetime federal student loan limit. Student borrowers are subject to a $257,500 lifetime maximum across eligible federal student loans borrowed for undergraduate, graduate, and professional study. Parent PLUS Loans are not included in the student's lifetime limit.

Parent PLUS Loan limits. For periods of enrollment beginning on or after July 1, 2026, the total Parent PLUS amount that all parents may borrow for one dependent student is limited to $20,000 per academic year and $65,000 in total for that student.

Important exception: Certain students and parents may remain eligible for the prior loan-limit rules during the student's expected time to complete the same program. Generally, students will be subject to the new federal borrowing limits and loan provisions beginning July 1, 2026. Please refer to the "What Is a Legacy Student?" section for information about exceptions to these rules.

Enrollment-based loan reductions. Direct Unsubsidized Loan limits will be reduced when a graduate or professional student enrolls less than full time. At Stevens, graduate full-time enrollment is 9 credits per semester.

Graduate student limits. New graduate student borrowers may borrow up to $20,500 per year in Direct Unsubsidized Loans, with a $100,000 graduate aggregate limit.

Grad PLUS Loans. The Grad PLUS Program is phased out for new borrowers. Students who qualify for the federal transition exception may remain eligible under the prior rules.

Lifetime federal student loan limit. Total eligible federal student loan borrowing across undergraduate, graduate, and professional study cannot exceed $257,500.

The Schedule of Reductions, or SOR, ties a student's maximum annual Direct Loan eligibility to the number of credits the student takes during the academic year. Previously, a student enrolled at least half time could generally receive the full annual loan limit, as long as the loan did not exceed the student's remaining financial need or cost of attendance.

Under the new rule, students who enroll less than full time may receive a lower annual Direct Loan amount. The reduction is based on the student's enrollment intensity, similar to how some other types of federal aid are adjusted for enrollment.

Who is affected? Undergraduate, graduate, and professional students receiving Direct Subsidized or Direct Unsubsidized Loans who enroll less than full time.

What is not reduced under SOR? Parent PLUS Loans are not subject to this specific SOR calculation.

Students must still meet all other federal loan eligibility requirements, including any applicable minimum enrollment requirement. Students enrolled less than half-time status during a semester will not be eligible to borrow a federal direct loan.

The financial aid office compares the student's enrolled credits with the credits required for full-time enrollment:

SOR Percentage = Enrolled Credit Hours ÷ Full-Time Credit Hours

The result is converted to a percentage and rounded to the nearest whole percentage point before it is applied to the annual loan limit. For example, 66.67% is rounded to 67%, and 87.5% is rounded to 88%.

SOR Undergraduate Example; Full time in Fall, Part time in Spring Scenario

A dependent senior undergraduate student is eligible to borrow up to $7,500 in Direct Loans for the academic year:

• Direct Subsidized Loan: up to $5,500

• Direct Unsubsidized Loan: up to $2,000

• Fall 2026 enrollment: 12 credits (full time)

• Spring 2027 enrollment: 9 credits (less than full time)

• Full-time enrollment for the academic year: 24 credits (12 credits per semester)

Step 1: Calculate the SOR Percentage

The student's SOR Percentage is 88%.

Step 2: Calculate the Adjusted Annual Loan Eligibility

Step 3: Divide the Adjusted Loan Eligibility Between Semesters

Because the student is enrolled full time in Fall, the normal Fall portion is awarded first. The remaining adjusted annual eligibility is then available for Spring.

This is an example only. A student's actual loan amount may be different based on enrollment, grade level, dependency status, remaining annual and aggregate eligibility, cost of attendance, financial need and other aid received.

SOR Graduate Example; Full time in Fall, Part time in Spring Scenario

A graduate student is eligible to borrow up to $20,500 in a Direct Unsubsidized Loan for the academic year. Graduate students are not eligible for Direct Subsidized Loans.

• Fall 2026 enrollment: 9 credits (full time)

• Spring 2027 enrollment: 6 credits (less than full time)

• Full-time graduate enrollment for the academic year: 18 credits (9 credits per semester)

Step 1: Calculate the SOR Percentage

The student's SOR Percentage is 83%.

Step 2: Calculate the Adjusted Annual Loan Eligibility

Step 3: Divide the Adjusted Loan Eligibility Between Semesters

Because the student is enrolled full time in Fall, the normal Fall portion of $10,250 is awarded first. The remaining adjusted annual eligibility is available for Spring.

This is an example only. A student's actual loan amount may be different based on enrollment, remaining annual and aggregate eligibility, cost of attendance, other financial assistance and institutional packaging procedures.

• Current borrowers with no new loans made on or after July 1, 2026, may enroll in these plans:

  • Standard Repayment

  • Extended Repayment

  • Graduated Repayment

  • Income Based Repayment (IBR)

  • New: Repayment Assistance Plan (RAP)

• Current borrowers may also utilize the following income contingent repayment plans but must move to a new repayment plan by July 1, 2028. If a new repayment plan is not selected, borrowers will automatically be placed into the Repayment Assistance Plan (RAP).

The following income contingent repayment plans will be eliminated after July 1, 2028.

• Pay As You Earn (PAYE)

• Saving on a Valuable Education (SAVE)

• Income-Contingent Repayment (ICR)

The repayment plan options after July 1, 2028 are Standard Repayment, Repayment Assistance Plan (RAP), or Income Based Repayment (IBR) Plan.

Repayment Assistance Plan (RAP):

• This is an income-driven repayment plan, and the monthly payment is determined by the borrower’s income and number of dependents. Changes in income or dependents can change your monthly repayment amount.

• Authorization for the Department of Ed to obtain tax information from the IRS or submission of other documentation of income for borrowers and their spouses and the number of dependents will be used to calculate the monthly payment.

Tiered Standard Repayment Plan: This repayment plan has fixed monthly payments broken down into four tiers based on the loan amount owed.

Maximum Repayment Period

• Plus loan borrowers who had a PLUS loan disbursed before July 1, 2026 and will not borrow anymore may use the following repayment plans until their loans are fully paid:

  • Extended Repayment Plan

  • Graduated Repayment Plan

  • 10-Year Standard Repayment Plan

• All Parent PLUS loans must be repaid under the same repayment plan. Parent PLUS borrowers with loans had a PLUS loan disbursed before July 1, 2026, who borrow additional PLUS loans on or after July 1, 2026, will only be able to choose the new standard plan.

• New Plus Loan Borrowers, who have loans disbursed on or after July 1, 2026, will only be able to select the new Standard Repayment Plan.

Loan Forbearance Changes

Federal Student Loans disbursed on or after July 1, 2027, are eligible for forbearance for up to nine months in any two-year period. Currently, students may have a forbearance for up to 12 months at a time, with a cumulative limit of three years.

Loan Deferment Changes

Economic hardships and unemployment deferments will end beginning July 1, 2027 for new loans, however borrowers with loans made before July 1, 2027, are still able to use these deferment options for those loans under the current rules.

Leave of Absences (LOA) and Federal Loan Eligibility

Federal Student Aid guidelines indicate that periods of leave of absence (LOA) cannot exceed 180 days within a 12-month period for a student to return. Students on an approved LOA will keep their legacy eligibility for federal loans provided they return within the approved timeframe.

Students who exceed an approved 180-day timeframe may be treated as being no longer enrolled or withdrawn. In this scenario, the student would not be eligible for any legacy provisions and would be subject to the new OBBBA loan limits.

• Log in with your FSA ID at StudentAid.gov.

• On the dashboard you will see your total Federal Student Loan balance

• Click “My Loans” to review detailed information on current balances, interest rates, loan statuses, loan types, and repayment progress for each loan borrowed.

Your Federal Student Loan servicer’s information can also be found at the top of the page.

If you are currently enrolled at Stevens, there will be no changes to the aid you have already received.

If you borrowed a federal student loan within the 2025-26 award year and before July 1, 2026, you likely meet the criteria for the “legacy” exception. As an undergraduate second year student, your parent will not be subject to the new OBBBA Parent Plus Loan limits. They may borrow under the previous loan limits for three academic years or the remainder of their expected time to degree completion, whichever is less.

No, you will be considered a new borrower if you switch your current program of study to enroll in and/or complete another program.

Students may not receive any more than 50% of their annual loan limit each semester. This means that if you did not borrow your loans in the Fall semester, you cannot then request the full amount of those loans for the Spring semester.

Yes. If you are otherwise eligible for a Direct Loan and your enrollment for the academic year is less than full time, your maximum annual Direct Loan amount must be adjusted using the federal SOR rules.

Your financial aid may need to be reviewed and adjusted. Adding or dropping credits can change your SOR Percentage and the amount you are eligible to borrow.

Yes. Direct Loan borrowers must meet federal enrollment requirements. Contact the Office of Financial Aid before changing your enrollment so you understand how the change may affect your aid.

Parent PLUS Loans are not subject to the SOR calculation. However, annual and aggregate Parent PLUS limits and the student's cost of attendance still apply.