The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

 

The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

  • Students whose Cost of attendance (COA) is fully covered by non-federal aid will no longer be eligible for a Federal Pell Grant.
  • Students with a Student Aid Index (SAI) greater than twice the maximum Pell Gant will not be eligible for a Federal Pell Grant. The SAI is generated by completion of the FAFSA.
  • Foreign Income must now be included in the Adjusted Gross Income.

The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

  • Loans will be reduced when students are not enrolled full-time.
  • New Aggregate Limits
    • Annual Limits are unchanged. https://www.montana.edu/financialaid/loansstudent.html
    • Previously enrolled students can continue under current limits under qualified legacy determination. Legacy lasts the lesser of three academic years or the difference between a student’s program length (time to degree for a full-time student) and period student has completed. For example, a student who finished their third year at the end of 2025/2026 would have one year of eligibility remaining.
    • New lifetime aggregate limits on all borrowing are set at $257,500 (excludes parent PLUS). Previously enrolled students can continue under current limits under qualified legacy determination.

The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

  • Parent PLUS eligibility for undergraduate students is reduced to $20,000 max per year with an aggregate limit of $65,000 per student.
    • Previously enrolled students can continue under current limits under qualified legacy determination. Legacy lasts the lesser of three academic years or the difference between a student’s program length (time to degree for a full-time student) and period student has completed. For example, a student who finished their third year at the end of 2025/2026 would have one year of eligibility remaining.
    • Supplemental loan information: https://www.montana.edu/financialaid/Loans-Private.html
  • Graduate PLUS eligibility is eliminated.
    • Previously enrolled students can continue under current limits under qualified legacy determination. Legacy lasts the lesser of three academic years or the difference between a student’s program length (time to degree for a full-time student) and period student has completed.

The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

  • Loans will be reduced when students are not enrolled full-time.
  • For non-professional programs, the annual unsubsidized limit remains at $20,500 with an aggregate limit of $100,000. For professional programs, the annual limit becomes $50,000 with an aggregate level of $200,000.
  • New lifetime aggregate limits on all borrowing are set at $257,500 (excludes parent PLUS). Previously enrolled students can continue under current limits under qualified legacy determination.
  • Graduate students are typically pursuing a master’s or doctoral degree. Professional students are typically pursuing a medically related degree.

The One Big Beautiful Bill Act (Public Law 119-21) was signed into law by President Trump on July 4, 2025. For students, families, and institutions, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Details are still emerging and this information is how we currently understand how it is being implemented. The most significant changes are listed below.

  • Current Borrowers
    • IBR borrowers can remain in their plan
    • All non-parent IDR borrowers must choose a new plan by July 01, 2028, or be place in RAP
    • Parent PLUS borrowers will be moved to the Standard Plan after July 01, 2028.
  • For first loans borrowed after July 1st, 2026: Standard Repayment Plan, four fixed terms:
    • 10 years for balances under $25,000.
    • 15 years for balances between $25,000 and $49,999.
    • 20 years for balances between $50,000 and $99,999.
    • 25 years for balances between $100,000 and higher.