Financial Aid

The One Big Beautiful Bill Act: Key Changes to Federal Student Aid

The One Big Beautiful Bill Act (OBBB) was signed into law on July 4, 2025, and makes significant changes to federal financial aid programs, including new loan limits, new loan repayment options, and updated eligibility requirements, for both current and future students. 

This page highlights some of the changes that are expected to impact SUNY Geneseo students. For a comprehensive list of all changes see H.R. 1 – One Big Beautiful Bill Act (Full Text). Most changes take effect for the 2026-27 academic year.

Notice: The information on this page is evolving and reflects the most current guidance available at this time. Details may change as federal rules and regulations are finalized. Students and families are encouraged to monitor studentaid.gov for the latest updates. Updated – April 20, 2026

FAFSA Form Changes

Beginning with the 2026-2027 academic aid year, the Student Aid Index asset calculation will exclude the following from the current net worth of business and farms and should not be reported as assets on the Free Application for Federal Student Aid (FAFSA) form:

  • The current net worth of family-owned business (with fewer than 100 full-time employees or full-time equivalent).
  • The net worth of farms on which the family resides.
  • The net worth of family-owned-and-controlled commercial fishing business and related expenses.

Federal Loan Changes

  • New Limits for Parent PLUS Loans: New borrowers will be subject to an annual limit of $20,000 and an aggregate (lifetime) limit of $65,000 per dependent student.
  • Federal Loan Program Lifetime Loan Limits: Students are subject to a $257,500 lifetime borrowing limit across all federal student loans, including both undergraduate and graduate loans. This total does not include Parent PLUS loans.
  • Reduced Annual Loan Limits for Part-Time Enrollment: Loan limits will be reduced for students enrolled in fewer than 12 credits. Changes in enrollment status may result in adjustments to loan eligibility.
  • Elimination of the Federal Direct Graduate PLUS Loan: Graduate students will no longer be able to borrow from this program beginning July 1, 2026. Note: The Federal Direct Student Loan is still available for graduate students.

Parent PLUS Loan Grandfathering Provision

Parent(s) may continue to borrow under prior Parent PLUS loan limits for up to three academic years—or the remainder of the student’s program, whichever is less—if all of the following conditions are met:

  • The student is enrolled as of June 30, 2026;
  • The parent previously borrowed a federal parent loan for the same academic program; and
  • The student remains in that program through graduation.

Students who qualify for this grandfathering provision will not be subject to the new Parent PLUS loan limits for the applicable period.

Note: OBBB does not provide exceptions for reduced annual loan limits for part-time enrollment which take effect with summer 2026 loans.

New Federal Loan Repayment Plans

For loans disbursed after July 1, 2026, income-driven repayment plans will be replaced by a new Repayment Assistance Program (RAP). Borrowers of loans disbursed after July 1, 2026 will be able to choose RAP or a standard 10-year or 25-year repayment plan. 

Borrowers of loans disbursed before July 1, 2026 will have the option to remain in existing income-driven repayment plans (IBR, PAYE, SAVE) but must enroll by June 30, 2028. They will be moved to RAP if they miss this deadline.  

Please note that borrowers should contact their loan servicer(s) or review information available from the Department of Education concerning federal loan repayment. 

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