Federal Student Aid program updates

This page contains information on Federal Student Aid (FSA) and U.S. Department of Education (ED) programs and policies.

The content was last updated June 6, 2026.

One Big Beautiful Bill Act Changes

Upcoming federal changes under H.R. 1, the One Big Beautiful Bill Act (OBBBA), are listed below. Most provisions take effect July 1, 2026, and some details are still being finalized by the U.S. Department of Education.
  • Graduate PLUS Loans are ending

    • Grad PLUS loans will be eliminated July 1, 2026.
    • Students who have never taken a graduate loan for the program they are enrolled in before that date won’t be able to borrow them moving forward.
    • Legacy provision: Students who borrow federal loans for their graduate program before July 1, 2026, may be eligible for graduate PLUS loans for up to their expected time to credential, or three years, whichever is less. Additionally, they must remain continuously enrolled in the same program at the same school.
    • Expected time to credential is defined as the lesser of three academic years or the difference between the student's program length and the period of such program of study that such individual has completed as of June 30, 2026.

    • Program length is the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution for a full-time student to complete the requirements for a specific program of study (not including optional terms (summer).
      • Graduates: Full time is considered 10 credits per quarter.
        • For example, if your degree requires 45 credits, your expected time to credential is (45 / 10) = 5 quarters 

  • Graduate Loan Lifetime Limits

    For the 2026-2027 academic year, the aggregate limit is capped at $100,000 for
    graduate students. If the student does not qualify as a legacy borrower, their previously borrowed graduate PLUS loans will count towards the lifetime limit. 

    Undergraduate loans do not count towards the graduate aggregate limit. 

  • Parent PLUS Loan limits are changing
    • Annual limit: $20,000 per year, per student
    • Lifetime limit: $65,000 per student
    • Applies to students who have never borrowed ANY federal loans before July 1, 2026 (“new borrowers”).

    Legacy borrowers Students who borrow federal loans for their graduate program before July 1, 2026, may be eligible for Parent PLUS loans for up to their expected time to credential, or three years, whichever is less. Additionally, they must remain continuously enrolled in the same program at the same school.

    • Expected time to credential is defined as the lesser of three academic years or the difference between the student's program length and the period of such program of study that such individual has completed as of June 30, 2026.

    • Program length is the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution for a full-time student to complete the requirements for a specific program of study (not including optional terms (summer).
      • Undergraduates: Full time is considered 12 credits per quarter.
        • For example, if your degree requires 180 credits, your expected time to credential is (180 / 12) = 15 quarters (5 academic years). 
  • Full-time enrollment will matter more

    • Loan disbursements will be prorated if a student enrolls less than full time.
    • This applies even to legacy borrowers—there is no exception written for them.
    • This rule applies to all student loans including subsidized, unsubsidized, and graduate unsubsidized.
    • Federal parent and graduate PLUS loans will not be prorated. 

  • Institutional accountability requirements

    Link to NASFAA Institutional Accountability Brief, February 2026.

    • Colleges must report median earnings of graduates for each academic program.
    • Federal accountability policy now ties Title IV eligibility (for Federal loans and Pell grants) directly to graduates’ earnings relative to workforce benchmarks. 
    • The Department of Education will begin issuing program-level (at the six-digit CIP level) earnings calculations for prior completer cohorts in July 2027. We will not know what programs are at risk until the 2027-2028 academic year.
    • All Title IV-eligible programs are subject to an earnings-based value test comparing former students’ earnings to workforce benchmarks. The program-level benchmarks are based on state-level, or national, median earnings four years after graduation at CWU:
      • Undergrads earnings must exceed working adults with only a high school diploma
      • Graduates earnings must exceed working adults with a bachelor’s degree
    • Any program that is below threshold for one year must notify currently enrolled students that the program is low-earning and at risk.
    • Any program that is below threshold for two (of three consecutive years) loses Federal Direct Loan eligibility.

Frequently Asked Questions

The FAQs below show details you need to know about federal financial aid changes related to H.R. 1 legislation.
  • Does this affect my financial aid this year?

    No. Everything for the current 2025-26 academic year remains the same. Your scholarships, grants, and loans will not be changed by H.R. 1 this year.

  • Are federal student loans going away?

    No. Federal Direct Subsidized and Unsubsidized Loans will continue to be available for undergraduate students. They will be prorated (reduced) if you are enrolled less than full time.

    One major change is that Graduate PLUS Loans are being phased out for new borrowers starting July 1, 2026.
  • What is happening to Graduate PLUS Loans?

    Beginning July 1, 2026:

    • Students who have never borrowed a federal loan for their graduate program before that date will not be eligible for moving forward.
    • Students who borrowed a federal loan at CWU before July 1, 2026, may continue borrowing under the current rules until they have reached their expected time to credential, or for three years, whichever comes first.
    • If you are not considered a legacy borrower, any previously borrowed graduate PLUS loans will count towards your lifetime limit of graduate loans of $100,000. 
    If you plan to start graduate school or continue beyond 2026, this may affect your future borrowing options. The Office of Financial Aid and Scholarships can help you plan ahead.
  • Will Parent PLUS Loans still exist?

    Yes, but with new limits. Starting July 1, 2026:

    • Parents may borrow up to $20,000 per year
    • And up to $65,000 total per student

    These limits apply only to new borrowers—students who have never borrowed any type of federal student loan before July 1, 2026.

    Students who have borrowed any federal loan before this date are considered legacy borrowers (see below).

  • Will my loans be reduced if I take fewer credits?

    Beginning July 1, 2026, yes.

    Federal loans will be prorated for students enrolled less than full-time. This applies to all borrowers, including legacy borrowers.

    Undergraduate students enrolled in fewer than 12 credits or who switch between part-time and full-time will need to plan their finances carefully.

  • What is a “legacy borrower”?

    A student is a legacy borrower if they:

    • Borrowed any type of federal student loan at CWU before July 1, 2026, or
    • Graduate students only - borrowed a federal loan for their current graduate program at CWU before that date

    Legacy borrowers may continue using current PLUS loan rules. However, to keep legacy status, students must remain continuously enrolled at CWU* or have an approved leave of absence.

    * If a student stops out and later returns without an approved leave, the new loan limits may apply.

  • Could my major or academic program lose financial aid eligibility?

    We don’t know yet.

    H.R. 1 updates the Financial Value Transparency (FVT) rules, which review whether graduates of each program meet certain earnings thresholds. The federal government is still defining how these rules will work.

    CWU is monitoring this process closely, and we will notify students if any program-specific changes occur. At this time, no CWU programs have been identified as affected.

  • Does this change how or when I should enroll in classes?

    Not for this year.

    However, because future loan disbursements will be tied more closely to full-time enrollment, students may want to plan their schedules carefully starting in 2026–2027.

    Your academic advisor can help you map out a schedule that keeps you on track.

  • Should I change my major because of this legislation?

    No. There is no federal guidance yet identifying programs that may be impacted by FVT. Students should continue choosing programs based on interest, strengths, and goals—not speculation.

    CWU will provide clear communication if federal decisions affect any majors or programs.

  • What is CWU doing to prepare for these changes?

    CWU is actively:

    • Working with federal and state agencies to advocate for students
    • Reviewing programs to understand potential FVT impacts
    • Reducing course scheduling conflicts to support timely graduation
    • Updating advising and financial aid processes to ensure students receive accurate, timely information
    • Preparing resources and planning tools for students and families as new rules are finalized

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