What St. Thomas University Students Need to Know About Upcoming Changes to Financial Aid
New federal legislation—commonly called the One Big Beautiful Bill Act (OBBBA)—introduces several changes to federal student aid programs. Many of these updates will take effect on July 1, 2026, and may influence how students borrow loans or qualify for certain types of financial assistance.
If you are exploring FAFSA updates, federal loan limits, or Pell Grant eligibility for 2026, the overview below highlights the most important information.
At St. Thomas University, we remain committed to helping students and families understand these changes while continuing to provide affordable pathways to a St. Thomas education.
Most importantly, federal financial aid is still available. Students will continue to have access to grants, loans, scholarships, and other funding opportunities.
Key Federal Student Aid Updates (Effective July 1, 2026)
Federal Student Loan Updates
Graduate PLUS Loan Program
- The Grad PLUS Loan program will no longer be offered to new Graduate borrowers starting July 1, 2026
- Graduate students will still be eligible for Direct Unsubsidized Loans, with revised borrowing limits
Parent PLUS Loan Program
Parent PLUS Loans will continue to be available for undergraduate students, with new borrowing caps:
- $20,000 annual limit per student
- $65,000 lifetime limit per student
Federal Student Loan Lifetime Limit
- A new cumulative federal loan limit of $257,500 will apply across most federal loan programs
These changes will primarily impact loans first borrowed on or after July 1, 2026.
Pell Grant Eligibility Changes (2026–2027 FAFSA)
The 2026–2027 FAFSA will include revised criteria for Pell Grant eligibility:
- Students with a Student Aid Index (SAI) exceeding twice the maximum Pell Grant may no longer qualify
- Students whose total aid already covers the full cost of attendance may be ineligible
Eligibility will vary based on each student’s FAFSA results.
FAFSA Calculation Updates
Beginning with the 2026–2027 FAFSA, several updates to aid calculations will be implemented:
- Additional sources of income may be included in eligibility determinations
- Certain types of foreign income may be factored into Pell Grant eligibility
- Asset protections for family farms and small businesses will be restored
These updates are designed to refine how financial need is evaluated.
How St. Thomas University Continues to Support Students
Despite these federal updates, multiple funding options remain available.
Students at St. Thomas University may qualify for:
- Federal grants, including Pell Grants
- Federal student loans
- Institutional scholarships and merit-based awards
- State financial aid programs
- Private scholarships and external funding sources
The St. Thomas University financial aid team works closely with students and families to help maximize available resources and develop a personalized financial plan.
Next Steps for Students
If you are planning for college and have questions about these changes, consider taking the following steps:
- Submit the FAFSA each year
- Apply for scholarships early and often
- Review your Student Aid Index (SAI) after FAFSA processing
- Reach out to the St. Thomas University financial aid office for individualized support
Frequently Asked Questions (FAQ)
Will federal financial aid still be available after 2026?
Yes. Federal aid programs, including Pell Grants and student loans, will continue. The updates affect eligibility and borrowing, not availability.
When will these changes take effect?
Most changes begin July 1, 2026, impacting the 2026–2027 academic year.
Will the FAFSA be different?
Yes. Updates will change how income and assets are considered in determining eligibility.
Are Pell Grants being eliminated?
No. Pell Grants will remain available, though eligibility requirements will be updated.
Will Parent PLUS Loans still exist?
Yes, but with new borrowing limits starting in 2026.
Should I still complete the FAFSA?
Yes. Filing the FAFSA remains essential for accessing federal, state, and institutional aid.
We are Here to Help
Financial aid updates can feel overwhelming, but you don’t have to navigate them alone.
The St. Thomas University Office of Financial Aid is here to help you understand these changes and create a plan to fund your education.