Important Notice: The One Big Beautiful Bill Act (OB3) law includes significant changes to federal student loans, borrowing limits, and repayment options. Many of these provisions require additional federal regulations before they can be fully implemented. The U. S. Department of Education is currently completing that process through negotiated rulemaking. Most OB3 financial aid changes are scheduled to take effect on July 1, 2026 unless otherwise noted. Some provisions have different effective dates, which will be clearly identified on this page.
Because the federal rulemaking process is ongoing (Public Comment is now closed), details may continue to evolve. This page will be updated as new information becomes available.
For the most up-to-date information from the Department of Education, please visit Federal Student Aid's OB3 Updates page.
Parent PLUS loans will continue to be available, but with new statutory limits:
Note: Previously, Parent PLUS loans were limited only by the Cost of Attendance. Families needing more than these limits may need to explore private loan options.
| Borrower Type | Annual Limit | Lifetime Limit |
|---|---|---|
| Undergraduate | $5,500 - $12,500 | $31,000 - $57,500 |
| Parent PLUS* | $20,000 per student* | $65,000 per student* |
| Graduate* | $20,500* | $100,000* |
| Total Lifetime Cap | N/A | $257,500* |
The $257,500 cap includes all undergraduate, graduate, and professional loans combined, even if they have been repaid or forgiven.
If you have a disbursed federal loan before July 1, 2026, you may qualify for legacy protection to continue borrowing under current rules. To qualify, you must:
Starting in the 2026-2027 award year, your Annual Loan Limit will be reduced proportionally if you are enrolled less than full-time (24 credits annually). The maximum amount for one semester is half of your annual loan limit.
Example: If you take 9 credits (9/24 = 37.5% of full-time), you are only eligible for 37.5% of your total annual loan amount. You must still be registered at least half-time in a given semester to receive loans for that semester.
Step 1: Student Status - Select Continuing Student if you've attended MCC at least one semester this academic year. Select New Student if this is your first semester at MCC this year.
Step 2: Set Your Annual Limits
Step 3: Enter Your Credits
For loans made on or after July 1, 2026, repayment will be simplified into two main options:
A: Under the new regulations, federal Direct Loans will now be proportionally reduced based on your enrollment level. Previously, many students could receive a full loan amount as long as they were at least half-time. Starting July 1, 2026, if you are enrolled half-time (typically 6 credits), your loan eligibility will be roughly 50% of a full-time award.
A: No. The annual and aggregate loan limits for undergraduate students remain the same ($31,000 for dependent students and $57,500 for independent students). However, all loans now count toward a new total lifetime borrowing limit of $257,500, which includes any future graduate or professional studies you may pursue after transferring.
A: No, the new regulations limit the amount a student can receive for one semester to half of the annual maximum.
A: If you did not attend in the fall but begin in the winter, you may still be able to receive a federal Direct Loan that covers both winter and summer, as long as you are in an eligible program, enroll at least half time in each term you want to receive loan funds, and meet all other federal and Mott Community College requirements. The college will determine your loan period (for example, winter only or winter and summer combined) when we review your enrollment. Beginning with the 2026–27 aid year, loan amounts are adjusted if you are enrolled less than full time, which can reduce how much is available for later terms in the same loan period.
A: Your fall loan will be prorated based on your enrollment at the time of disbursement, if you were enrolled in 12 credits when your loan disbursed your fall loan eligibility will not change. Your winter loan will be prorated based on your new annual enrollment level.
A: If you withdraw after your fall Direct Loan has been disbursed, federal regulations require Mott to review how much of that aid you actually earned based on how far you were into the term. If you withdraw before completing more than 60% of the semester, we may have to return part of your fall loan to the U.S. Department of Education, which can create a balance you owe to the college or to the Department. If you owe an outstanding Title IV overpayment or have not repaid a resulting balance, you will not be able to receive additional federal aid when you return. As long as you resolve any balance, are not in default, and meet all other eligibility and satisfactory academic progress requirements, you can receive federal aid, including loans, when you come back the next fall.
A: Yes. Starting in the 2026–27 award year, a student is ineligible for a Pell Grant if their Student Aid Index (SAI) is greater than twice the maximum Pell award for that year. For example, if the max Pell is $7,395, any student with an SAI of $14,790 or higher will not receive a Pell Grant.
A: Maybe. It depends on how your scholarship compares to your total Cost of Attendance (COA), which includes tuition, fees, books, and estimated living expenses.
If the total of all your non-federal grants and scholarships (including your private scholarship) is less than your COA, you can still receive your full Pell Grant eligibility, and any remaining Pell funds after your bill is paid can help with living expenses.
If the total of your non-federal grants and scholarships is equal to or higher than your COA, federal rules say you are not eligible for a Pell Grant unless some of your non-federal aid can be reduced so that the total is below your COA. If you’re not sure whether your scholarship is less than your COA, contact our Financial Aid Office and we can review your aid and tell you whether you can still receive Pell for living costs.
A: Yes, for new borrowers starting July 1, 2026, Parent PLUS Loans are now capped:
A: The OBBBA streamlines repayment into two primary options: a tiered Standard Repayment Plan and a new Repayment Assistance Plan (RAP). Borrowers currently on older IDR plans must transition to one of these new options by July 1, 2028. If you do not choose a plan by then, the Department of Education will automatically move you into the RAP.
| Feature | Pre-OBBBA Regulation | OBBBA Regulation (Post-July 1, 2026) |
|---|---|---|
| Part-Time Loans | Could receive annual amount in one semester if registered at least half-time | Prorated based on exact credit count |
| Pell Grant Limit | Sliding scale based on SAI | Hard Cutoff at 2x Max Pell Award |
| Parent PLUS | Up to Cost of Attendance | $20k Annual / $65k Lifetime cap |
| Lifetime Loan Limit | No universal aggregate across levels | $257,500 (All federal loans combined) |
ADMINISTRATIVE NOTE: Community college financial aid offices are currently waiting for the final "Negotiated Rulemaking" results from the Department of Education. While technical systems (like NSLDS) are being updated as of May 2026, some specific implementation details may shift before the July 1 deadline.
