INFORMATION FOR
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. This law introduced changes to higher education and federal financial aid programs. Some provisions went into effect immediately, while most changes will begin on Tuesday, July 1, 2026 or later.
William Paterson University is committed to helping you understand what is changing and what is not. This page will be updated as the U.S. Department of Education releases additional guidance. Information on this page continues to evolve. For the latest federal guidance, monitor studentaid.gov. The information provided reflects the University’s current understanding of changes to federal financial aid under the One Big Beautiful Bill Act and is not intended to serve as legal advice. Many details, including transition rules, eligibility requirements, and implementation timelines, remain subject to federal rulemaking and guidance from the U.S. Department of Education. University policies, procedures, and guidance may change as additional information becomes available.
No action is required right now. Your loans and financial aid continue under current rules. Most changes will begin on Tuesday, July 1, 2026 or later, the University will provide updated guidance as details are finalized.
Loan Amounts and Enrollment Status
Loan funding amounts will be prorated for less than full-time enrollment. If you are enrolled less than full-time, you will be eligible for a reduced amount of loan funding. Enrollment status is determined by degree applicable coursework.
Lifetime Borrowing Loan Cap
A $257,500 lifetime borrowing cap will be established on all federal student loans (undergraduate, graduate, and professional), excluding Parent PLUS.
Federal Parent PLUS Loan Changes
Beginning July 1, 2026, new Parent PLUS loan borrowers may borrow up to $20,000 per year and $65,000 in total per dependent student. Legacy Borrowing Provision (continuing students): Students who were enrolled in a program of study on or before Monday, June 30, 2026, and who received a Direct Loan disbursement for that program before Tuesday, July 1, 2026, are eligible to have a parent borrow under the prior Parent PLUS loan rules for up to three academic years or through the remainder of the student’s expected time to degree completion whichever is shorter.
Federal Graduate PLUS Loan Changes
The Graduate PLUS program will be discontinued as of Tuesday, July 1, 2026.
Legacy borrowing provision (continuing students); Students who were enrolled in a program of study as of Monday, June 30, 2026, and had a Graduate Plus Direct Loan disbursed for that program of study prior to Tuesday, July 1, 2026, can continue to borrow under the previous loan limits for three academic years or the remainder of their expected time to degree completion, whichever is less.
Federal Direct Unsubsidized Loan Limits: Only applicable for graduate and professional students.
Effective Tuesday, July 1, 2026:
Graduate (Non-Professional): $20,500 annual, $100,000 aggregate.
Professional Degree: $50,000 annual, $200,000 aggregate.
Legacy limits will apply for loans before Tuesday, July 1, 2026.
