One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, resulting in significant changes to federal student aid programs. An overview of the changes and their effective dates is provided below. Further details are available from Federal Student Aid.
Last Updated: April 27, 2026
Elimination of the Graduate PLUS Loan program
Effective July 1, 2026
- New borrowers will no longer be eligible for the Graduate PLUS Loan.
- Graduate students who have borrowed a Federal Unsubsidized Loan and/or a Graduate PLUS Loan for their current academic program before July 1 will still be able to apply for new Graduate PLUS Loans for up to three additional years or until graduation—whichever comes first.
- Students who have borrowed a Federal Unsubsidized Loan and/or a Graduate PLUS Loan but start a new program after July 1 will not be eligible for the PLUS loan in their new program.
Loan Proration for Part-Time Borrowers
Effective for the 2026-27 academic year
Federal student loan amounts must be prorated based on the number of credits a student attends. If a student does not attend full-time, they are not eligible for the full annual loan limit. Loan amounts will be prorated in direct proportion to the percent of full-time state the student is enrolled in (i.e., if a student attends half-time, they can only receive half of the annual loan amount). Please visit the Office of the Registrar to find enrollment status definitions based on the number of credits.
Note: Half-time enrollment is still required for all federal student loans.
New Federal Student Loan Limits
For first-time borrowers with an enrollment period that begins on/after July 1, 2026
Undergraduate loan limits – annual and aggregate – remain the same. More information on loan limits by grade level and dependency status is available Loan Amount Limits.
| Borrower Type | Undergraduate | Graduate Unsubsidized | Parent PLUS |
|---|---|---|---|
| Annual Limit | $5,500-$12,500 | $20,500 | $20,000 |
| Aggregate Limit | $31,000-$57,500 | $100,000(excluding UG loans) | $65,000* |
| Lifetime Limit (all levels, including Graduate PLUS) | $257,500* | ||
*without regard to any amounts that have been repaid, forgiven, canceled, or otherwise discharged
Note: Professional student loan limits are not included in the table above; UM-Flint does not have any professional programs as defined by the US Department of Education.
Students who are not eligible for enough aid for any reason may seek private loan options from a lender of their choice. The ELM Select tool provides information on lenders used by students at the University of Michigan-Flint over the past three years. We encourage students to apply for scholarships as well.
Federal Pell Grant Ineligibility Due to Receipt of Non-Federal Assistance
Effective July 1, 2026
Students whose entire cost of attendance is covered by grants or scholarships from non-federal sources may be ineligible for a Pell Grant, even if they are otherwise eligible for the program. The eligibility will be determined by the timing of disbursement.
Changes to Federal Student Loan Repayment Plans
Effective July 1, 2026
Borrowers with new loans made on/after July 1, 2026, can be repaid only using the two new plans below, and all loans must be on the same plan. Current borrowers with no new loans may continue in an existing plan or switch to one of the new plans.
Standard Repayment Plan
- Fixed repayment terms of 10, 15, 20, or 25 years, based on the amount borrowed
- Borrowers with new loans will be assigned accordingly if another plan is not selected
- This plan is required for new Parent PLUS loans
Repayment Assistance Plan
- Monthly payment will be 1-10% of income based on adjusted gross income
- Minimum monthly payment is $10
Other rules may apply to consolidation loans. More information can be found on Student Loan Repayment. All borrowers are encouraged to find their federal student loan servicer by logging in at Federal Student Aid. The servicer will handle billing and work with borrowers to determine their repayment options.
Note: This information is subject to change as final rules have not yet been determined. Updates will be made as additional guidance becomes available from the U.S. Department of Education.