Financial aid impacts of the One Big Beautiful Bill Act

ASU is committed to providing you clear answers to changes in federal policy

Background

In 2025, the U.S. Department of Education’s RISE negotiated rulemaking committee reached consensus on the One Big Beautiful Bill Act student loan provisions, with final regulatory text expected in early 2026.

What that means

New One Big Beautiful Bill Act rules include changes to student loans that are funded by the federal government. These changes are expected to go into effect on July 1, 2026, and thus impact students who are enrolled at ASU for fall 2026.

The updates to federal financial aid rules do not apply to everyone in the same way. Students who already received federal loans before July 1, 2026, may continue some policies under legacy rules, while students borrowing for the first time after that date will follow the new provisions under the One Big Beautiful Bill Act.

Student type

Undergraduate

Graduate

Are you a dependent student for FAFSA purposes?

Yes

Were you enrolled at ASU before July 1, 2026?

Yes

Did you receive a federal student loan disbursement at ASU before July 1, 2026, for the same program you will attend in fall 2026?

Yes

Did you attend your spring 2026 or summer 2026 semester without withdrawing from all of your courses?

Yes

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your subsidized and unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (six credits for undergraduates) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Parent PLUS Loans	All parents (combined) who are approved for a Parent PLUS Loan can borrow up to $20,000 per year per dependent student, with a lifetime maximum of $65,000 per student.
Repayment plans available	Only two types of repayment options are available for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your subsidized and unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (six credits for undergraduates) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Parent PLUS Loans	All parents (combined) who are approved for a Parent PLUS Loan can borrow up to $20,000 per year per dependent student, with a lifetime maximum of $65,000 per student.
Repayment plans available	Only two types of repayment options are available for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your subsidized and unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (six credits for undergraduates) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Parent PLUS Loans	All parents (combined) who are approved for a Parent PLUS Loan can borrow up to $20,000 per year per dependent student, with a lifetime maximum of $65,000 per student.
Repayment plans available	Only two types of repayment options are available for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

You are currently eligible for student loans under legacy provisions. To maintain this eligibility, you must stay continuously enrolled in the same program at ASU and complete it within the program’s standard full-time completion timeframe.

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your subsidized and unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (six credits for undergraduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Aggregate borrowing limits	Your parent can continue borrowing Parent PLUS Loans under the legacy rules of the One Big Beautiful Bill Act of 2025. Under these rules, your parent may borrow up to your cost of attendance minus any other financial aid you receive, with no lifetime (aggregate) limit on Parent PLUS Loans. You are considered a legacy student for the amount of time your program is designed to take a full-time student to complete.
Repayment plans available	Legacy borrowers may remain on or switch among the existing repayment plans (SAVE, REPAYE, PAYE, IBR, ICR) until June 30, 2028. After that, they must choose: Tiered Standard Repayment Repayment Assistance Plan Income-based Repayment (for eligible borrowers)

Policy

What this means for you

Less than full-time loan limits

Effective July 1, 2026, your subsidized and unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (six credits for undergraduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount.

Estimate your loan amount (LINK TO PRORATION CALCULATOR)

Repayment plans available

Only two types for new loans:

Tiered Standard Repayment
Repayment Assistance Plan

Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy

What this means for you

Less than full-time loan limits

Estimate your loan amount (LINK TO PRORATION CALCULATOR)

Repayment plans available

Only two types for new loans:

Tiered Standard Repayment
Repayment Assistance Plan

Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy

Provision

Less than full-time loan limits

Estimate your loan amount (LINK TO PRORATION CALCULATOR)

Repayment plans available

Only two types for new loans:

Tiered Standard Repayment
Repayment Assistance Plan

Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy

What this means for you

Less than full-time loan limits

Estimate your loan amount (LINK TO PRORATION CALCULATOR)

Repayment plans available

Legacy borrowers may remain on or switch among the existing repayment plans (SAVE, REPAYE, PAYE, IBR, ICR) until June 30, 2028. After that, they must choose:

Tiered Standard Repayment
Repayment Assistance Plan
Income-based Repayment (for eligible borrowers)

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your unsubsidized loan amount and Graduate PLUS Loans, if applicable, will be based on the number of credit hours you take each semester. If you are enrolled at least half time (five credits for graduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Aggregate borrowing limits	Students under legacy rules follow existing federal loan limits, which in many cases allow higher totals (including unsubsidized loans and Graduate PLUS Loans).
Loan program availability	Students may continue to borrow Graduate PLUS Loans for up to three academic years or until normal program completion, whichever occurs first.
Repayment plans available	Legacy borrowers may remain on or switch among the existing repayment plans (SAVE, REPAYE, PAYE, IBR, ICR) until June 30, 2028. After that, they must choose: Tiered Standard Repayment Repayment Assistance Plan Income-based Repayment (for eligible borrowers)

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (five credits for graduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Aggregate borrowing limits	The unsubsidized loan aggregate limit is capped at $100,000 for graduate students, not including amounts borrowed as an undergraduate student.
Repayment plans available	Only two types for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (five credits for graduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount (LINK TO PRORATION CALCULATOR)
Aggregate borrowing limits	The unsubsidized loan aggregate limit is capped at $100,000 for graduate students, not including amounts borrowed as an undergraduate student.
Repayment plans available	Only two types for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.

Policy	What this means for you
Less than full-time loan limits	Effective July 1, 2026, your unsubsidized loan amount will be based on the number of credit hours you take each semester. If you are enrolled at least half time (five credits for graduate students) but less than full time, you will have your loan eligibility adjusted. For example, a half-time course load typically results in receiving about half of the full loan amount. Estimate your loan amount.
Aggregate borrowing limits	The unsubsidized loan aggregate limit is capped at $100,000 for graduate students, not including amounts borrowed as an undergraduate student.
Repayment plans available	Only two types for new loans: Tiered Standard Repayment Repayment Assistance Plan Older income-driven repayment plans (SAVE, REPAYE, PAYE, ICR) not available for new loans.