Financial Aid Legislative Update
Manchester University Financial Aid Legislative Update
Our Commitment to You
The Office of Student Financial Services is committed to providing clear, accurate, and timely information about how federal legislation may affect your financial aid.
We will share what we know, identify what is still evolving, and connect you with reliable resources. As additional federal guidance becomes available, this page will be updated.
One Big Beautiful Bill Act (OBBBA)
Signed into law: July 4, 2025
The One Big Beautiful Bill Act (OBBBA) includes federal changes to student financial aid and loan programs.
What this means for Manchester students
- Current students are not impacted by these changes at this time
- Most updates apply to new and transfer students beginning July 1, 2026
- We will communicate directly with any students affected as federal guidance is finalized
Last updated: March 26, 2026
Federal Direct Loans for Undergraduate Students
There are no changes to federal student loan limits for undergraduate students under the OBBBA. Students will continue to borrow within existing annual and lifetime federal loan limits.
Beginning in the 2026–27 academic year:
- Loan amounts may be adjusted based on enrollment status (full-time vs. part-time)
- Students must still be enrolled at least half-time to be eligible
Federal Direct Loans for Parent Borrowers (Parent PLUS Loans)
Beginning July 1, 2026, new limits will apply to Parent PLUS Loans for new and transfer students.
In plain terms
- Parents can borrow up to $20,000 per year per student
- There is a lifetime maximum of $65,000 per student
These limits apply regardless of how many parents are borrowing.
Current families may qualify for temporary flexibility under federal transition rules. Manchester will provide guidance if this applies to your situation.
- Loan amounts may be adjusted based on enrollment status (full-time vs. part-time)
- Students must still be enrolled at least half-time to be eligible
Federal Direct Loans for Graduate Students
Beginning July 1, 2026, new borrowing limits will apply:
Annual Loan Limits
- $20,500 per year for most graduate programs
- Up to $50,000 per year for eligible professional programs
Lifetime Loan Limits
- $100,000 total for most graduate programs
- $200,000 total for professional programs
These limits apply only to graduate borrowing and do not include undergraduate loans.
Grad PLUS Loan Changes
The Grad PLUS Loan program will be discontinued for new borrowers after July 1, 2026.
Some current graduate students may qualify for temporary continuation under federal “legacy” provisions. Additional guidance will be shared as it becomes available.
Federal Loan Repayment Plans
The OBBBA introduces changes to how student loans are repaid, beginning July 1, 2026.
New Repayment Options
- A new income-based plan called the Repayment Assistance Plan (RAP)
- A revised Standard Repayment Plan
Repayment Assistance Plan (RAP)
- Monthly payments based on 1–10% of income
- Minimum payment of $10 per month
- Repayment term of up to 30 years
- Eligible for Public Service Loan Forgiveness (PSLF)
- Prevents loan balances from growing due to unpaid interest
What happens to current borrowers
- You may be able to keep your current repayment plan
- Some plans will transition to RAP in the future (by July 1, 2028)
- You can choose to switch plans depending on your situation
Complete Detailed Information
For more research into the One Big Beautiful Bill Act, we recommend the following resources.
Federal Student Aid’s One Big Beautiful Bill Act Updates
Federal Student Aid’s July 18, 2025 Dear Colleague Letter
Questions or Need Help?
We understand that financial aid changes can feel complex. Our team is here to help.
Please contact the Office of Student Financial Services for personalized guidance:
