One Big Beautiful Bill Act (OB3)

The One Big Beautiful Bill Act (OB3, also referred to as OBBBA) was signed into law on July 4, 2025. It represents the most significant reform to federal student aid programs in a generation, affecting loan limits, repayment options, Pell Grant eligibility, and how loan amounts are calculated for part-time students. 

The Office of Financial Aid at Marywood University is actively monitoring all regulatory  developments and will update this page as new guidance is released. If you have questions specific to your situation, please  contact our office directly.

The table below summarizes the key loan changes taking effect July 1, 2026. 

For loans taken our on or after July, 1, 2026, borrowers will have two repayment options:

• Tiered Standard Repayment: Fixed monthly payments over 10 to 25 years, depending on total amount borrowed. 
• Repayment Assistance Plans (RAP): Payments based on adjusted gross income; loan forgiveness after 30 years (360 payments) or through Public Service Loan Forgiveness (PSLF)

SAVE, PAYE, and ICR plans will be sunset for new loans after July 1, 2026. Existing borrowers who do not take out new loans after that date retain access to IBR or applicable plans for existing loans. Public Service Loans Forgiveness (PSLF) remains available. 

Two new restrictions on Pell Grant eligibility will take effect for the 2026-27 award year: 

• Full Scholarship students: If your Cost of Attendance is entirely covered by non-federal grants or scholarships, you will no longer be eligible to receive a Pell Grant in addition to that aid. 
• High SAI students: Students with a Student with a Student Aid Index (SAI) equal to or greater than twice the maximum annual Pell Grant will be ineligible. For example, if the maximum Pell Grant is $7,395 for 2026-27, students with an SAI of $14,790 or higher will not qualify. 

Beginning with the 2026-27 FAFSA, the following assets should not be reported and will be excluded from the Student Aid Index calculation: 

• Net worth of family-owned businesses with fewer than 100 full-time employees
• Net worth of farms on which the family resides
• Net worth of family-owned commercial fishing businesses

• Current students: Review whether you have a federal loan disbursed before July 1, 2026. If so, you may qualify for legacy borrowing protections. Contact our office to confirm your status. 
• Incoming students (Fall 2026): Plan your borrowing under the new limits. For graduate students, understand the distinction between graduate and professional annual caps for your program. Please contact our office with questions. 
• All borrowers: Monitor studentaid.gov and check back her for updates as final regulatory guidance is released. 
• Consider a leave of absence or program change? Contact us before making any changes! These decisions can affect your legacy borrowing eligibility. 

1. Graduate Students 

Graduate PLUS Loans are eliminated for new borrowers starting July 1, 2026. New annual and lifetime limits will apply:

• Graduate students: $20,500/year;$100,000 lifetime aggregate (excludes undergraduate borrowing)
• Professional students: $50,000/year; $200,000 lifetime aggregate (excludes undergraduate borrowing)
• Universal lifetime cap: $257,500 across all federal loan programs combined 
• Marywood's Doctorate in Clinical Psychology (PsyD) program is considered a "professional program". All other graduate and doctoral-level programs are subject to the traditional graduate student definition and limits. 

Legacy Provision - Graduate Students

If you had a Federal Direct Loan disbursed before July 1, 2026, while enrolled in your current program at Marywood, you may continue borrowing under current loan limits for up to 3 additional academic years or until you complete your program, whichever comes first. Changing program or schools may affect your legacy eligibility. Contact our office to discuss your specific situation. 

1. Undergraduate Students - Parent PLUS Loans 
   • New annual limit: $20,000 per year per dependent student
   • New aggregate limit: $65,000 lifetime per dependent student 
   • Parents with prior Parent PLUS borrowing may qualify for legacy provisions under the same 3-year/program completion rule
2. Loan Proration for Part-Time Enrollment 
   • Beginning July 1, 2026, annual loan amounts will prorated in proportion to your enrollment intensity at the time of disbursement. Below is an example:
   • A freshman can normally borrow $5,500 for the year ($2,750 each semester if they are full-time) 
     • But, if this student:
       • Takes 9 credits in Fall (not full-time)
       • Plans 12 credits in Spring (full-time) 
     • Because they're not full-time all year (which would be 24 credits), they only qualify for 88% of the full loan (21 credits/24 credits = 88%). This student's new annual loan is $4,840 ($5,500 x 88%) instead of $5,500. 
     • The new annual amount is now split it between semesters as follows: 
       • Fall (9 credits): about $2,090
       • Spring (full-time): stays at $2,750 

Withdrawal note: If you withdraw from courses after disbursement and drop below full-time, the reduction in credits will impact your spring semester loan eligibility.