OBBBA Updates
Federal Financial Aid Updates (OBBBA)
The federal government recently passed the One Big Beautiful Bill Act (OBBBA), bringing major updates to federal student aid regulations. Most of these new rules went into effect nationwide on July 1, 2026. These updates may affect how much you can borrow and how other aid interacts with your financial aid package.
For the most up to date information including student scenarios that will illustrate the effects of OBBBA, review the Federal Student Aid Updates.
Key Rule Changes
- Federal Direct Loan eligibility is prorated based on enrollment level.
- Students enrolled less than full-time (fewer than 24 credit hours per academic year) will receive reduced loan amounts.
- Dropping units or moving to part-time status will reduce loan eligibility.
- $257,500 total across undergraduate, graduate, and professional loans combined.
- Borrowers who take out a new federal loan on or after July 1, 2026 will be eligible for two repayment plans which are the Tiered Standard Repayment and the Repayment Assistance Plan (RAP).
- Students with non-federal aid covering full cost of attendance no longer qualify.
- New high-asset and foreign income exclusions.
- Workforce Pell (short term programs) where Pell is approved for programs 8 to 15 weeks, 150 to 600 clock hours. Programs must meet federal completion and job placement requirements. Approval takes a year or more. Please note, at this time Allan Hancock College does not have any programs that meet the weeks/hours of this program.
- Beginning April 26, 2026, the federal government added a new step to the Free Application for Federal Student Aid (FAFSA) process to protect students from identity fraud. From this date forward, random applications will be selected for an identity check.
- If your application is selected, you will receive a request to verify your identity by completing a short live camera check on your phone or tablet from Federal Student Aid (FSA). Be prepared to show a valid government-issued ID. Most applications will not be selected for a check.
REminders
- Complete your financial aid each year.
- Plan your enrollment carefully to avoid reduced loan eligibility.
- Monitor your student portal and myHancock email for updates from Financial Aid.