Federal financial aid rules are changing. Here's what you need to know.

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On July 1, 2026, several significant changes to federal financial aid included in last year's One Big Beautiful Bill Act, also referred to as the OBBBA or Working Families Tax Cuts Act, go into effect. These changes affect current and prospective students at the undergraduate, graduate, and professional levels.

George Mason University's Office of Student Financial Aid (OSFA) has developed a centralized webpage for students, faculty, and staff to review these changes, and office staff are available for students who require assistance or additional information related to their specific situations.

What's changing?

As required by the new law, George Mason's OSFA is actively implementing changes in the following areas:

Pell eligibility

Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant are no longer eligible for a Federal Pell Grant. The current maximum Pell Grant is $7,395, so any student with a SAI of $14,790 or higher is now ineligible.

Students whose scholarships and aid fully cover their Cost of Attendance (COA) are also no longer eligible for a Pell Grant. COA includes total estimated yearly costs for the following categories: tuition and fees, food and housing, books and supplies, transportation, personal expenses, and loan fees (if applicable).

Enrollment and loan eligibility

Federal loan eligibility is now tied directly to how many credits students take, which means that taking less than a full-time courseload reduces loan eligibility.

Students must be enrolled at least half-time to receive federal loan funding, and they must be enrolled full-time for the entire academic year to receive the full annual maximum amount of their federal loans based on their academic level.

The table below shows the full-time, half-time, and academic year totals for credits at each student level, per federal guidelines:

Student Type	Full-time Credits (per semester)	Academic Year Total	Half-time credits (per semester)
Undergraduate	12 credits	24 credits	6 credits
Graduate	9 credits	18 credits	4.5 credits
Law	10 credits	20 credits	4.5 credits

Because of these new requirements, students need to be aware of their current enrollment status and how changes to their courseload may affect their eligibility. Dropping or withdrawing from classes may reduce their aid, trigger recalculations of their aid, or create unexpected account balances.

Federal loan limits and legacy provisions

The law introduces limits on the amount of federal loans borrowers can receive. However, there are legacy provisions for some existing student loan borrowers.

New Limits

Student Type	Annual Limit	Aggregate Limit
Graduate	$20,500	$100,000
Professional (JD Law*)	$50,000	$200,000

*JD Law is the only degree program at George Mason University that meets the new definition for Professional Degree established by the One Big Beautiful Bill Act

Lifetime Borrowing Limit

$257,500 (undergraduate + graduate loans) not including Parent PLUS loans

Loan Type	Annual Limit	Aggregate Limit
Parent PLUS Loans**	$20,000 per dependent student	$65,000 per dependent student

**The $65,000 aggregate PLUS loan limit is the maximum amount to borrow without regard to previously forgiven, repaid, canceled, or discharged loans. These restricted limits may affect how much students need to borrow or how families manage other aid.

Additionally, Graduate PLUS Loans will no longer be available for students beginning a new graduate or professional program on or after July 1, 2026.

Legacy provisions for existing loans

Legacy (grandfathering ) is a provision that exempts existing borrowers from the new, stricter lending rules, limits, or requirements. Graduate PLUS loans and Parent PLUS loans are still available for currently enrolled borrowers who have borrowed prior to July 1, 2026.

In order to hold legacy status, students:

• Must be actively enrolled at George Mason University in an eligible credential program prior to July 1, 2026, and

• Must have received at least one federal loan disbursement for that same program of study before July 1, 2026.

If a student changes their major but stays within the same type of degree (or certificate), they are still considered to be in the same program of study.

Additional legacy conditions:

• Legacy eligibility is time-limited to a maximum of three academic years, or the remaining time required for the student to complete their current program of study, whichever is shorter.

• Students must continue enrollment in the same type of degree and remain enrolled at George Mason University to retain eligibility.

• Changing degree types or transferring to another institution will result in loss of legacy eligibility.

• Any break in enrollment, program change that constitutes a new program of study, or institutional transfer, will terminate legacy eligibility.

• Transfer students will lose legacy provisions if they change schools. A student must remain at the same institution, in the same degree type, to remain eligible for the legacy provisions.

What should students do to prepare?

George Mason is encouraging students who receive federal financial aid to take the following actions as these changes go into effect:

1. Review their enrollment plans and financial aid packages carefully in Patriot Web.

   • This will help them determine if they meet the credit limits for loan eligibility, as well as whether their SAI makes them ineligible for a Federal Pell Grant.

2. Contact OSFA before making any schedule changes that may affect their aid eligibility.

3. Keep an eye on their inboxes and bookmark our OBBBA information page, as OSFA will continue sharing guidance and resources through these channels.