Federal financial aid changes

The 2026-27 academic year brings several important changes to financial aid.

Federal financial aid changes for 2026

What Clark University students should know about upcoming federal aid changes

Recent federal legislation, often referred to as the One Big Beautiful Bill Act, introduces several updates to federal student aid programs. Many of these changes will take effect beginning July 1, 2026, and may impact how students borrow federal loans or qualify for certain types of aid.

If you are researching FAFSA changes, federal student loan limits, or Pell Grant eligibility updates for 2026, the information below outlines what you need to know.

At Clark University, our priority is to help students and families understand these updates while continuing to identify affordable pathways to a Clark education.

Most importantly, federal financial aid is not going away. Students will continue to have access to grants, loans, scholarships, and other financial resources.

Key federal student aid changes (beginning July 1, 2026)

Federal student loan changes

Graduate PLUS loan changes

The Grad PLUS Loan program will be discontinued for new borrowers beginning July 1, 2026
Graduate students will continue to have access to Direct Unsubsidized Loans, with updated borrowing limits

For additional information on changes for graduate students, please review What Graduate Students Need to Know.

Parent PLUS loan changes

Parent PLUS Loans will remain available for families of undergraduate students, but new limits will apply:

$20,000 annual borrowing limit per student
$65,000 lifetime borrowing limit per student

For additional information for current parents, please review the Parent Plus Changes for Current Parent Borrowers.

For additional information for new fall 2026 students, please review the Parent Plus Changes for New Parent Borrowers.

Federal student loan lifetime limit

A new lifetime federal borrowing cap of $257,500 will apply across most federal student loan programs

These updates primarily affect new loans borrowed after July 1, 2026.

Pell Grant eligibility changes (2026–2027 FAFSA)

The 2026–2027 FAFSA will include updated Pell Grant eligibility rules:

Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant may no longer qualify
Students whose total financial aid already meets or exceeds the full cost of attendance may not be eligible

These changes may impact eligibility depending on each student’s FAFSA results.

FAFSA calculation updates

Beginning with the 2026–2027 FAFSA, updates to financial aid calculations will include:

Additional forms of income may be considered in determining eligibility
Certain foreign income may be included in Pell Grant calculations
Asset exemptions for family farms and small businesses will be reinstated

These updates are intended to improve how federal aid eligibility is assessed.

How Clark University continues to support

Despite federal policy changes, there are still many ways to fund your enrollment.

Students at Clark University may be eligible for:

Federal grants, including the Pell Grant
Federal student loans
Institutional scholarships and merit awards
State-based financial aid programs
Private scholarships and external funding opportunities

Clark’s financial aid team works closely with students and families to maximize available resources and build a comprehensive financial plan.

What students should do next

If you are preparing for college and have concerns about federal financial aid changes, consider the following steps:

Complete the FAFSA each year
Apply for scholarships as early as possible
Review your Student Aid Index (SAI) once your FAFSA is processed
Connect with Clark University’s financial aid office for personalized guidance

Frequently asked questions

Will federal financial aid still be available after 2026?

Yes. Federal aid programs such as Pell Grants and federal student loans will continue. The changes affect how aid is calculated and distributed, not whether it exists.

When do these changes take effect?

Most updates will begin July 1, 2026, impacting the 2026–2027 academic year.

Will the FAFSA change?

Yes. Updates will affect how income and assets are considered when determining eligibility. Many small farms and businesses no longer have to list their farm or business assets on the FAFSA.

Are Parent PLUS Loans still available?

Yes, but with new borrowing limits beginning in 2026. The limit will be $20,000. Remember their is an origination fee of 4.228%

Should I still complete the FAFSA?

Absolutely. Completing the FAFSA remains the most important step in determining eligibility for federal, state, and institutional aid.

Will Pell Grants be eliminated?

No. Pell Grants will remain available, though eligibility criteria will change.