FAFSA 2026 - 2027

Undergraduate Students:

Student Federal Direct Loan Reduction for Less Than Full-Time Enrollment

Historically, students have been able to borrow their full annual loan limit as long as they were enrolled at least half-time per term.  Effective for the 2026-2027 academic year, the amount of loan availability will be reduced dependent upon the number of credits the student is enrolled in.

• Full-time enrollment is 12 credits per term, for a total of 24 credits for the academic year (Fall/Spring)
  • The annual loan limit for a freshman is $5500 for a dependent student and $9500 for an independent student.
  • The annual loan limit for a sophomore is $6500 for a dependent student and $10,500 for an independent student.
• Examples: 
  • Independent sophomore enrolled in 9 credits per term for a total of 18 credits
    • 18 ÷ 24 = 0.75             $10,500 x 0.75 = $7875 reduced annual loan limit           This would be split $3938 to Fall and $3937 to Spring
  • Dependent freshman enrolled in 12 credits in Fall and 9 credits in Spring for a total of 21 credits
    • 21 ÷ 24 = 0.875           $5500 x 0.875 = $4813 reduced annual loan limit   This would be split $2750 for Fall term and $2063 for Spring term

5. Schools will be required to reduce loan amounts in direct proportion to the student’s enrollment of less than full-time. 

If a student drops or withdraws from a course, at any point in the term, that puts their enrollment below full-time, the school will be required to reduce their loan amounts.

This could generate a balance owed to the school.

Parent PLUS Loan Limit

Legacy Student: Parents that previously borrowed for their dependent student prior to July 1, 2026, can borrow Parent PLUS loans for the student for up to three years with no limits other than the student’s Cost of Attendance (COA).  The student must maintain concurrent enrollment.  If the student withdraws from a semester or does not attend a semester, they are no longer a legacy student. 

NOTE: If you transfer to a different school, an articulation agreement will be needed to maintain legacy student status.

The annual loan limit per student on Parent PLUS loans will be $20,000.  This is a student limit, not a parent limit; meaning the second parent could not borrow additional Parent PLUS loans for the student once the first student reaches the annual loan limit.  A parent can borrow the difference between their student’s Cost of Attendance (COA) budget and the student's other financial aid as long the amount of the difference does not exceed the $20,000 limit.

The aggregate loan limit per student of Parent PLUS loans will be $65,000. 

Pell Grant

Beginning with the 2026-2027 academic year, a student will not receive Pell Grant funds if their grants and scholarships from non-federal sources meets or exceeds their Cost of Attendance (COA) budget.  These sources include institutional, state and other private sources.

If a student has a $10,000 COA and qualified for Pell Grant based on financial need, but they have received financial aid from state grants, institutional scholarships and other private scholarships that equals $10,000 or more; they will not receive the Pell Grant.

Note: The Cost of Attendance (COA) is the estimated expense to attend the school.  It includes direct costs (billed to student school accounts) such as tuition and fees; plus, indirect costs (expenses not billed to student school accounts) such as transportation and housing.  The COA serves as a budget for financial aid calculations.  The COA varies for students based on enrollment.

Workforce Pell Grant

Currently a program of study needs to consist of at least: 16 semester or trimester credit hours, or 24 quarter credit hours, or 600 clock hours and 15 weeks of instructional time for the program student to be eligible for Pell Grant. 

OB3 has created a set of criteria for programs of study, less than the above mentioned criteria, to become eligible for Pell Grant.  These short programs, referred to as “eligible workforce program”, will need to meet requirements determined by the state, requirements determined by the Department of Education, and value-added earnings requirements.