One Big Beautiful Bill Act

Beginning with the 2026-27 award year, students whose Cost of Attendance (COA) is fully covered by non-federal scholarships and grants will not be eligible to receive a Federal Pell Grant.

Example

In 2026-27, Swoop RedHawk receives:

• A university scholarship that covers his full Cost of Attendance
• A Federal Pell Grant based on FAFSA eligibility

Because Swoop’s non-federal scholarship already covers their full Cost of Attendance, he will no longer receive the Federal Pell Grant.

Beginning with the 2026-27 award year, students whose Student Aid Index (SAI) exceeds twice the maximum Federal Pell Grant award for the award year will not qualify for a Federal Pell Grant.

Because the maximum Pell Grant amount is established annually by the federal government, the SAI threshold may change each year.

Example

If the maximum Federal Pell Grant for the award year is $7,395:

• Twice the maximum Pell Grant is $14,790

As such, students with an SAI greater than $14,790 would not be eligible for a Federal Pell Grant.

The annual Federal Direct Student Loan limit remains unchanged. Federal student loans have a combined lifetime borrowing limit of $257,500 across all levels of study. Within this total, students may borrow up to:

• $57,500 for undergraduate study
• $100,000 for graduate study and/or
• $200,000 for professional programs*

Note that this lifetime limit excludes Parent PLUS loans.

* Miami does not offer any professional programs

New Borrowers

Beginning on July 1, 2026, Parent PLUS Loans are limited to:

• $20,000 per dependent student per year
• $65,000 aggregate (lifetime) per dependent student

Who is Considered a New Borrower?

A student is generally considered a new borrower if neither the student nor the parent received a Federal Direct Loan (Subsidized, Unsubsidized, or Parent PLUS) for the student’s current program of study before July 1, 2026.

Legacy Provision 

Some currently enrolled students may continue borrowing under the previous Parent PLUS Loan rules. A student may qualify for legacy eligibility if:

1. The student was enrolled in the same program of study at the same institution on June 30, 2026 AND
2. Before July 1, 2026 either:
   1. The parent received a Parent PLUS Loan for that program OR
   2. The student received a Federal Direct Subsidized or Unsubsidized Loan for that program.

If these requirements are met, the new Parent PLUS Loan limits do not apply while the student completes the program if the student:

1. Remains continuously enrolled in the same program and at the same institution AND
2. Completes the program within the published program length or three years after July 1, 2026, whichever is less.

When is Legacy Eligibility Lost?

Legacy eligibility ends if the student:

1. Changes to a different credential level (for example, from a bachelor’s program to a graduate program),
2. Fully withdraws from a required academic term OR
3. Otherwise stops continuous enrollment outside of scheduled breaks or non-required terms. 

Beginning on July 1, 2026, Federal Direct Unsubsidized Loans are limited to:

• $20,500 annual loan limit
• $100,000 aggregate (lifetime) borrowing limit

Professional students* may borrow up to $50,000 annually with a $200,000 aggregate borrowing limit.

Federal Lifetime Borrowing Limits

Federal Direct Student Loans have a combined lifetime borrowing limit of $257,500 across all levels of study (excluding Parent PLUS Loans). Within this overall limit, students may borrow up to:

• $57,500 for undergraduate study
• $100,000 for graduate study
• $200,000 for professional programs*

*Miami does not offer professional programs eligible for these borrowing limits.

New Borrowers

Beginning on July 1, 2026, Federal Direct Graduate PLUS Loans are no longer available to new borrowers. Graduate students who do not qualify under the legacy provision should review Federal Direct Unsubsidized Loans and Private Loan options.

Who is Considered a New Borrower?

Student are generally considered new borrowers if they did not receive a Federal Direct Loan (Subsidized, Unsubsidized, or Graduate PLUS) for their current program of study before July 1, 2026.

Legacy Provision 

Some currently enrolled graduate students may continue borrowing under the previous federal loan rules.
A student may qualify for legacy eligibility if:

1. The student was enrolled in the same program of study at the same institution on June 30, 2026 AND
2. Before July 1, 2026, the student received either of the following for the same program of study:
   
   1. A Federal Direct Unsubsidized Loan OR
   2. A Federal Direct Graduate PLUS Loan.

For both loan programs, the student must:

• Remain continuously enrolled in the same program and at the same institution AND
• Complete the program within the published program length or three years after July 1, 2026, whichever is less.

Federal Direct Unsubsidized Loans

Students may continue borrowing under the previous Federal Direct Unsubsidized Loan limits. The new aggregate and lifetime borrowing limits do not apply while the student completes the program if the student remains eligible under the legacy provision.

Students who qualify under the legacy provision for Federal Direct Unsubsidized Loans continue to be subject to the previous $138,500 aggregate borrowing limit, including undergraduate Federal Direct Loans.

Federal Direct Graduate PLUS Loans

Students may continue borrowing through the Federal Direct Graduate PLUS Loan Program while completing the program if the student remains eligible under the legacy provision.

When is Legacy Eligibility Lost?

Legacy eligibility ends if the student:

1. Changes to a different credential level (for example, from a master’s program to a doctoral program),
2. Fully withdraws from a required academic term OR
3. Otherwise stops continuous enrollment outside of scheduled academic breaks or non-required terms. 

The following federal requirements remain the same:

All student types must be enrolled at least half time to receive a Federal Direct Loan. 

Part-Time Enrollment

Students who begin part-time enrollment in 2026-27 must have their Federal Direct Subsidized and Unsubsidized Loan eligibility adjusted under the new law.

This requirement does not apply to Parent PLUS Loans.

Additional Loan Options

For information about other borrowing options, visit our Private Loans page.

Financial aid eligibility is first determined using the standard federal calculation:

Cost of Attendance - Grants and Scholarships - Federal Work-Study = Maximum Loan Eligibility

If you are enrolled less than full-time for the academic year, your annual loan limit is then reduced based on your planned enrollment.

Your annual Federal Direct Loan limit is multiplied by this percentage to determine your adjusted loan eligibility.

Example

A dependent junior, Swoop RedHawk, is eligible to borrow $7,500 for the academic year.

Planned Enrollment

• Fall: 12 credits
• Spring: 12 credits

Total: 24 credits (100% full-time)

Annual loan eligibility: $7,500

Swoop Drops a Class After Fall Loan Disburses

His enrollment changes to:

• Fall: 9 credits
• Spring: 12 credits
  

Total academic year enrollment: 21 credits

Percentage of full-time: 21 ÷ 24 = 87.5% (rounded to 88%)

This annual loan eligibility becomes: $7,500 × 88% = $6,600

Because the fall loan has already been disbursed, the reduction may:

• decrease the spring loan disbursement, or
• create a balance owed if excess loan funds were already received

If your enrollment changes from full- to half-time, you may experience adjustments or reductions in your loans.

When will my loan be adjusted?

Enrollment is reviewed throughout the academic year. If your planned enrollment changes, your annual Federal Direct Loan eligibility may be recalculated before future loan disbursements.

Could I owe money back?

Possibly. If your enrollment decreases after a loan has already been disbursed, federal regulations may require your annual loan eligibility to be reduced. This could result in a smaller future disbursement or a balance due on your student account.