{"additionalLinks": [], "href": "/announcements-events/big-updates/definitions", "id": "33190", "language": "en", "mainContent": [{"headerSize": "1", "id": null, "value": "One Big Beautiful Bill Act \u2013 Important Definitions", "widgetType": "text_header"}, {"classes": null, "id": null, "value": "\n\nThis page was last updated on Aug. 24, 2026.", "widgetType": "paragraph"}, {"data": [{"classes": null, "id": null, "value": "On June 24, 2026, the U.S. District Court for the District of Columbia preliminarily stayed part of the U.S. Department of Education\u2019s professional degree definition. This means that some of the programs that were identified as a professional degree program won't be considered a professional degree program, while other programs that previously weren't identified as a professional degree program will be considered a professional degree program for the duration of the stay. We encourage you to contact your institution to determine if this impacts you.", "widgetType": "paragraph"}], "null": "Off", "target": null, "widgetType": "highlight"}, {"classes": null, "id": null, "value": "On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, resulting in changes to federal student aid programs. Some of these changes went into effect immediately; others went into effect on July 1, 2026; and the remaining changes will go into effect in the coming years.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "On May 1, 2026, the U.S. Department of Education published a final rule concerning most of the loan-related provisions in the OBBBA. Read the final rule\u2014titled \u201cReimagining and Improving Student Education - Federal Student Loan Program Final Regulations\u201d\u2014for the full details.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "This page provides the definitions to important terms and concepts affecting recipients of federal student aid, including borrowers. We will continue to update this page and our OBBBA announcement page when new information becomes available.", "widgetType": "paragraph"}, {"headerSize": "2", "id": null, "value": "Important Definitions", "widgetType": "text_header"}, {"data": [{"data": [{"classes": null, "id": null, "value": "Direct Subsidized Loans and Direct Unsubsidized Loans have three different types of loan limits:\n
    \n
  1. Annual loan limit\u2014The maximum loan amount you can borrow each academic year
    2. \n
  2. Aggregate loan limit\u2014The maximum amount of unpaid principal balance minus any capitalized interest that you can have outstanding at any point in time on all of your subsidized and unsubsidized loans for undergraduate, graduate, or professional study
    3. \n
  3. Lifetime maximum loan limit\u2014The maximum amount you can receive, regardless of any amount paid or discharged, in any combination of subsidized loans, unsubsidized loans, and PLUS loans for graduate or professional study
    4. \n
\nThe annual and aggregate limits vary depending on your program of study and, for undergraduate students, how far along you are in your program and whether you\u2019re a dependent or an independent student.\n
\n
\nThe charts that follow show the annual and aggregate loan limits for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans. The actual amount you\u2019re eligible to borrow for an academic year might be less than the maximum annual amounts shown in the charts. For example, you can\u2019t borrow more than your cost of attendance minus other aid that you\u2019ve received. Additionally, your school or institution may limit the amount you can borrow based on your program of study, as long as any such limit is applied consistently to all students enrolled in that program of study.\n
\n
\nThe charts compare the pre- and post-July 1, 2026, loan limits. Note that the new loan limits apply to all students who aren\u2019t eligible for what\u2019s called the \u201cinterim exception.\u201d Students who are eligible for the interim exception will continue to have access to the pre-July 1, 2026, loan limits for an additional amount of time. If this applies to you, contact the financial aid office at your school to determine the length of time you\u2019ll qualify for the exception.\n
\n
\nIf you\u2019re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your school) are adjusted downward proportionally based on your level of enrollment.\n
\n
\nYour school will notify you of the actual loan amount you\u2019re eligible to receive based on your academic level, dependency status, and other factors such as\n\nThe amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you\u2019re eligible to receive can increase or decrease based on changes in your circumstances. Your school will notify you of any changes in your eligibility.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "
1. ANNUAL LOAN LIMITS
\n

\nDependent undergraduate students (unless your parent is unable to obtain a Direct PLUS Loan for parents (i.e., a parent PLUS loan) due to adverse credit)\n

\n\n\n\n\n\n\n\n\n\t\n\n\n\n\n\n\n\n\n\n\t\n\n\n
YearPre-OBBBA LimitNew Limit
First Year Total$5,500 (not more than $3,500 can be subsidized)No change
Second Year Total$6,500 (not more than $4,500 can be subsidized)No change
Third Year & Beyond (Total Each Year)$7,500 (not more than $5,500 can be subsidized)No change
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Independent undergraduate students (and dependent students, if your parent is unable to obtain a parent PLUS loan due to adverse credit)\n

\n\n\n\n\n\n\n\t\n\t\n\n\n\n\n\n\n\n\n\n\t\n\n\n
YearPre-OBBBA LimitNew Limit
First Year Total$9,500 (not more than $3,500 can be subsidized)No change
Second Year Total$10,500 (not more than $4,500 can be subsidized)No change
Third Year & Beyond (Total Each Year)$12,500 (not more than $5,500 can be subsidized)No change
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "

Graduate students\n

\n\n\n\n\t\n\n\n\n\t\n\t\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total Amount (Each Year) for unsubsidized loans$20,500 (unsubsidized only)No change
Total Amount (Each Year) for PLUS loansCost of attendance minus other aid received (Direct PLUS Loans for graduate or professional borrowers only)Direct PLUS Loans for graduate borrowers are no longer available.
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "

Professional students*\n

\n\n\n\n\n\n\n\n\t\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total Amount (Each Year) for unsubsidized loans$20,500 (unsubsidized only)$50,000 (unsubsidized only)
Total Amount (Each Year) for PLUS loansCost of attendance minus other aid received (Direct PLUS Loans for graduate or professional borrowers only)Direct PLUS Loans for professional borrowers are no longer available.
\n

*Students who are enrolled in health profession programs and who previously were eligible for higher annual and aggregate limits can continue to receive loans at those higher limits while they remain eligible for the interim exception. However, once the student takes an action that causes them to lose eligibility for the exception, they\u2019ll become subject to the new borrowing limits listed above.

\n", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "

Parent borrowers\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total Amount (Each Year) for parent PLUS loansCost of attendance minus other aid received$20,000 on behalf of each student
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "
2. AGGREGATE LOAN LIMITS
\n

\nDependent undergraduate students (unless your parent is unable to obtain a parent PLUS loan due to adverse credit)\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit
Total Amount (includes all subsidized and unsubsidized loans received for undergraduate study)$31,000 (not more than $23,000 can be subsidized)No change
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Independent undergraduate students (and dependent students, if your parent is unable to obtain a parent PLUS loan due to adverse credit)\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit
Total Amount (includes all subsidized and unsubsidized loans received for undergraduate study)$57,500 (not more than $23,000 can be subsidized)No change
\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Graduate students\n

\n\n\t\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total Amount (includes all subsidized and unsubsidized loans received for graduate study)$138,500*$100,000 (for borrowers who are not and have never been professional students)
\n

The *pre-OBBBA limit includes loans received for undergraduate study.

", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Professional students*\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total Amount (includes all subsidized and unsubsidized loans received for graduate and/or professional study)$138,500\u2020$200,000 minus any amount that was received as a graduate student
\n

\n*Students who are enrolled in health profession programs and who previously were eligible for higher annual and aggregate limits can continue to receive loans at those higher limits while they remain eligible for the interim exception. However, once the student takes an action that causes them to lose eligibility for the exception, they\u2019ll become subject to the new borrowing limits listed above.\n

\n

\u2020The pre-OBBBA limit includes loans received for undergraduate study.

", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Parent borrowers\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit (for those ineligible for the interim exception)
Total AmountNo Limit$65,000 on behalf of each student from all parents\u2019 combined borrowing*
\n
\n*For example, if Parent A borrows $50,000 on behalf of their first child and Parent B borrowers $15,000 for that same child, the total is $65,000 borrowed between both parents on behalf of that child. Those parents can\u2019t take out any further loans on behalf of that child, but they can take out up to $65,000 in loans on behalf of a second child (and so on for each of their children).\n
", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "

3. LIFETIME MAXIMUM LOAN LIMIT FOR STUDENT BORROWERS
\n

\n\n\n\n\n\n\n\n\n\n\n\n
Pre-OBBBA LimitNew Limit
Total Amount*No Limit$257,500
\n

*This includes the following Direct and Federal Family Education Loan (FFEL) Program loan types: subsidized loans, unsubsidized loans, and PLUS loans for graduate or professional students (regardless of any amounts paid or discharged).

\n\n", "widgetType": "paragraph"}], "title": "

Loan Limits

", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "If you meet certain requirements, you\u2019ll have a period of time after July 1, 2026, during which you might be eligible for a Direct Loan under the pre-OBBBA loan limits. This is called the \u201cinterim exception.\u201d\n
\n
\nIf you qualify for the interim exception, you\u2019ll be exempt from certain loan limits and loan eligibility changes for the lesser of\n\nUndergraduate Students and Parent PLUS Borrowers\n
\nYou qualify as an eligible undergraduate student under the interim exception to allow your parent to receive a Direct PLUS Loan for parents if you\n\n\u201cCredential\u201d refers to the degree you\u2019re seeking, for example, a bachelor\u2019s or associate degree. You can\u2019t change credential level and maintain eligibility for the interim exception, but you can change majors within your credential.\n
\n
\nGraduate and Professional Students\n
\nYou qualify as an eligible graduate or professional student under the interim exception only if you\n\nIf you\u2019re a graduate or professional student and you\u2019re considering changes to your graduate concentration or any other changes to your program of study, we encourage you to consult with the financial aid office at your school to determine if that change will affect your eligibility for the interim exception.\n

\nAdditional Details About the Interim Exception\n", "widgetType": "paragraph"}], "title": "

Loan Limits Interim Exception

", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "We encourage you to reach out to the school where you intend to study or are already studying so they can tell you if your degree program is considered a graduate program or a professional program.\n
\n
\nWhat is the difference between a graduate student and a professional student?\n\nWhat is a professional degree?\n
\nThe term \u201cprofessional degree\u201d is defined as a degree that signifies \n\nA professional degree is generally at the doctoral level and requires at least six academic years of postsecondary education to complete, including at least two years of post-baccalaureate coursework, as well as generally requiring professional licensure to begin practice in the intended field.\n
\n
\nThe degree must be in the same group as one of the following professional degrees:\n\nIf you\u2019re considering changing your program of study, contact your school to determine whether the change will affect your loan eligibility or your eligibility for the loan limit exception.\n", "widgetType": "paragraph"}], "title": "

Professional Students

", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "Under the Repayment Assistance Plan (RAP), your required monthly payment amount is based on your income and the number of your dependents, instead of being based on your loan debt, interest rate, and repayment period (as it would be under the Tiered Standard Plan). Changes in your income or number of dependents will result in changes to your monthly payment amount. If you choose RAP, you must\n\nWe use this information to calculate your monthly payment amount under RAP and to recalculate your monthly payment amount each year based on your income and number of dependents at that time.\n
\n
\nBorrower and Loan Eligibility\n
\nIf you have a single loan\u2014including a Direct Consolidation Loan\u2014that was first disbursed on or after July 1, 2026, then you have access to only RAP and/or the Tiered Standard Plan as repayment options for all of your Direct Loans, including any type of Direct Loan first disbursed before July 1, 2026.\n
\n
\nMost Direct Loan borrowers will have access to RAP for their Direct Loans, with the exception of the following loan types that are ineligible for repayment under RAP:

\n\nTypically, all of a borrower\u2019s Direct Loans must be paid under the same plan. However, if you have one of the ineligible loan types listed above and any of the following Direct Loan types listed below, then the loans listed above will be permitted to be repaid separately under the Tiered Standard Plan. The following loan types may be repaid under either the Tiered Standard Plan or RAP:\n
\n
\n\nOther loan programs, like the Federal Family Education Loan (FFEL) Program, the Federal Perkins Loan Program, and the Health Education Loan (HEAL) Program, are not permitted to be repaid under RAP or the Tiered Standard Plan. If you have loans in a program that\u2019s ineligible for the new plans and you have Direct Loans, which are eligible for the new plans, then you may repay your Direct Loans under either of the two new plans according to loan type eligibility and the non-Direct Loans separately under one of the pre-OBBBA plans for which they are eligible.\n
\n
\nMonthly Payment Amount\n
\nYour required monthly payment amount under RAP is a percentage of your annual income, most commonly your adjusted gross income (AGI), divided by 12 to determine the monthly payment amount. Your monthly payment amount is then reduced by $50 for each dependent you claim on your federal tax return; however, your monthly payment may not be less than $10 a month. The percentage of your annual income varies depending on your AGI (see the \u201cRepayment Assistant Plan base payment percentage\u201d table).\n
\n
\nIf you\u2019re married and file a joint federal income tax return, your monthly payment is generally based on the combined income of you and your spouse. However, your monthly payment will be reduced if your spouse also has federal student loans.\n
\n
\nIf you\u2019re married and file a separate tax return from your spouse, only your income and the dependents you claim on your tax return will be used to determine your monthly payment amount.\n", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Repayment Assistance Plan base payment percentage\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Total Adjusted Gross Income (AGI)Base Payment*
Not more than $10,000$120
More than $10,000 and not more than $20,0001% of your AGI
More than $20,000 and not more than $30,0002% of your AGI
More than $30,000 and not more than $40,0003% of your AGI
More than $40,000 and not more than $50,0004% of your AGI
More than $50,000 and not more than $60,0005% of your AGI
More than $60,000 and not more than $70,0006% of your AGI
More than $70,000 and not more than $80,0007% of your AGI
More than $80,000 and not more than $90,0008% of your AGI
More than $90,000 and not more than $100,0009% of your AGI
More than $100,00010% of your AGI
\n
\n*The base payment is a percentage of your AGI that is used to determine what would be paid over 12 months without accounting for any reductions for your dependents. It is not the actual monthly payment amount that you\u2019re required to pay each month. The \"Monthly Payment Amount Based on Your AGI Range\u201d table includes the range of monthly payment amounts derived from the base payment percentages.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Monthly Payment Amount Based on Your AGI Range*\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\n\n\n\t\n\n\n\n\n\n\n\n\t\n\n\n\n\n\n\n\n\n\n\n\n\t\n\n\n\n\n\n\n\n\n\n\n
AGI RangeMonthly Payment Amount Range
$0\u2013$10,000$10.00
$10,001\u2013$20,000$10.00\u2013$16.67
$20,001\u2013$30,000$33.34\u2013$50.00
$30,001\u2013$40,000$75.00\u2013$100.00
$40,001\u2013$50,000$133.34\u2013$166.67
$50,001\u2013$60,000$208.34\u2013$250.00
$60,001\u2013$70,000$300.01\u2013$350.00
$70,001\u2013$80,000$408.34\u2013$466.67
$80,001\u2013$90,000$533.34\u2013$600.00
$90,001\u2013$100,000$675.01\u2013$750.00
More than $100,000At least $833.33
\n
\n*This chart assumes you have no dependents. You can subtract $50 from the monthly payment amount for each dependent you claim on your federal income tax return, but your monthly payment amount can never be less than $10.\n", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Payment Processing\n
\nUnless you\u2019re required to pay late charges or other costs, when you make a payment on your loan, we apply the payment first to any amount of outstanding interest as of the date the payment was received. If the payment amount is more than the amount of outstanding interest, we apply the remainder of your payment to your principal.\n
\n
\nIf you\u2019re required to pay late charges or other costs, we apply your payment differently depending on your repayment plan. If you\u2019re repaying under RAP, we apply your payment first to outstanding interest, then to late charges and other costs, and then to your principal.\n
\n
\nIf you\u2019re repaying under the Tiered Standard Plan, we apply your payment first to late charges and other costs, then to outstanding interest, and then to your principal.\n
\n
\nInterest Subsidy\n
\nBorrowers whose full, on-time monthly payments are less than the interest accrued between the previous due date and the current payment date will have their unpaid interest for that month subsidized.\n

\nOnly the interest that accumulates from due date to due date after entering RAP will be subsidized. Interest that accrues during any periods of nonrepayment or that accrued before entering RAP won\u2019t be subsidized.\n

\nAssuming all payments are made on time and in full and that you don\u2019t take any breaks (like a deferment or forbearance) after entering RAP, then your total outstanding balance will never go higher than your total outstanding balance when you entered RAP.\n

\nUnder RAP, the interest subsidy is applicable to both subsidized and unsubsidized loans and is available for the entire time a borrower is enrolled in the plan. Unlike the Income-Based Repayment (IBR) and Pay As You Earn (PAYE) plans, this subsidy is not limited to the first three years of payments.\n

\nStarting in spring 2027, payments under the IBR and PAYE plans must be made on time and in full in order for you to receive the interest subsidy.\n

\nAdditional Considerations\n

\nMatching Principal Payment\n
\nWhen a borrower\u2019s on-time payment reduces their principal by less than $50, we make a matching payment to ensure the principal is reduced by $50 for the month. However, if the borrower\u2019s scheduled monthly payment is less than $50, we make a matching payment to ensure the principal is reduced by an amount equal to the borrower\u2019s payment.\n
\n
\nA month\u2019s eligibility to receive the matching principal payment is based on whether or not that month\u2019s payment is made on time and in full. However, the determination for the amount of the matching principal payment to be applied to the loan is based on the actual amount paid by the borrower (or on the borrower\u2019s behalf) for that month.\n
\n
\nIn order to determine the amount of the matching principal payment that will be applied, we use the following steps:\n
    \n
  1. Determine that the monthly payment was made on time (no later than its due date)
    2. \n
  2. Determine that the amount of money that was actually paid in that month is not less than the total amount due for the month
    3. \n
  3. Determine whether (after applying the payment) there was an outstanding principal reduction of less than $50
    4. \n
  4. Determine which is less: $50 or the total amount paid* in the month following the previous due date
    5. \n
  5. Subtract the amount applied to the outstanding principal (in Step 3) in that month
    6. \n
\n*Amount does not include payments that were used to resolve delinquency.\n
\n
\nAdditional Considerations\n\nLoan Discharge\n
\nUnder RAP, any remaining loan balance may be discharged after you\u2019ve satisfied 360 qualifying monthly payments over a period of at least 30 years.\n
\n
\nQualifying payments for RAP include the following:\n\n*If you change from one IDR plan to another, your repayment period might also change. For example, if you\u2019re enrolled in the PAYE Plan, which has a 20-year repayment period, and you subsequently enroll in RAP, which has a 30-year repayment period, then your payments under the PAYE Plan will count toward discharge under RAP, but your repayment period would increase from 20 to 30 years.\n
\n
\nAdditionally, the on-time payment must be made in full, meaning that the total amount due (sometimes referred to as the monthly payment amount or the amount billed) is made on or before its monthly due date.\n
\n
\nIf you\u2019re eligible for the IBR, ICR or PAYE plans and you enroll in RAP, you\u2019re permitted to reenroll in the IBR, ICR or PAYE plan. However, payments made under RAP won\u2019t count toward discharge under the IBR, ICR or PAYE plans.\n
\n
\nPublic Service Loan Forgiveness (PSLF)\n
\nGenerally, payments made under the RAP are eligible for Public Service Loan Forgiveness (PSLF) as long as the payment is made on time and in full.\n
\n
\nIn the near future, we\u2019ll provide more information about how RAP and the PSLF Program interact.\n

\nFederal and State Income Tax\n
\nExcept for PSLF, you might have to pay federal and/or state income taxes on any loan amount that is discharged. We\u2019ll notify you when your loan is identified as eligible for discharge, and you\u2019ll have 21 days to opt out of the discharge.", "widgetType": "paragraph"}], "title": "

Repayment Assistance Plan

", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "Under the Tiered Standard Plan, your required monthly payment amount is based on\n\nBorrower and Loan Eligibility\n
\nIf you have a single loan\u2014including a Direct Consolidation Loan\u2014that is first disbursed on or after July 1, 2026, then you have access to only the Repayment Assistance Plan (RAP) and the Tiered Standard Plan as repayment options for all of your Direct Loans, including any type of Direct Loan first disbursed before July 1, 2026.\n
\n
\nAll Direct Loan borrowers will have access to the Tiered Standard Plan for their Direct Loans. Additionally, the following loan types are eligible for repayment only under the Tiered Standard Plan:

\n\nTypically, all of your Direct Loans must be paid under the same plan. However, if you have one of the loan types listed above and any of the following Direct Loan types listed below, then the loans listed below may be repaid either together with those above (under the Tiered Standard Plan) or separately (under the RAP):\n
\n
\n\nYou might automatically be placed in the Tiered Standard Plan\u2014even though you didn\u2019t choose it\u2014because\n\nOther loan programs\u2014like the Federal Family Education Loan (FFEL) Program, the Perkins Loan Program, and the Health Education Loan (HEAL) Program\u2014are not permitted to be repaid under RAP or the Tiered Standard Plan. If you have a mix of loans in a program that\u2019s ineligible for the new plans and you have Direct Loans that are eligible for the new plans, then you may repay your Direct Loan(s) under either of the two new plans according to loan type eligibility and the non-Direct Loan(s) separately under one of the pre-OBBBA plans for which it is eligible. \n
\n
\nMonthly Payment Amount\n
\nUnder the Tiered Standard Plan, you\u2019ll make fixed monthly payments and repay your loan in full within the maximum repayment period outlined in the chart below (not including periods of deferment or forbearance) from the date the loan entered the Tiered Standard Plan. If you add additional loans to the plan at a later date (or leave the plan and return to it), your maximum repayment period will be recalculated based on the total outstanding principal balance on your Direct Loans upon reentering the Tiered Standard Plan. Your payments must be at least $50 a month and can be more, if necessary, to repay the loan within the required time period.", "widgetType": "paragraph"}, {"classes": null, "id": null, "value": "Maximum Repayment Period\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Total Direct Loan Outstanding Principal BalanceMaximum Repayment Period
Less than $25,00010 years
Equal to or greater than $25,000 but less than $50,00015 years
Equal to or greater than $50,000 but less than $100,00020 years
Equal to or greater than $100,00025 years
\n
\nPublic Service Loan Forgiveness (PSLF)\n
\nPayments made while enrolled in the Tiered Standard Plan are not considered qualifying payments for PSLF or Temporary Expanded Public Service Loan Forgiveness (TEPSLF).\n", "widgetType": "paragraph"}], "title": "

Tiered Standard Plan

", "widgetType": "accordion_item"}, {"data": [{"classes": null, "id": null, "value": "

Pell Grant eligibility has been expanded to include students enrolled in eligible workforce programs under the OBBBA.

An eligible workforce program is a short-term program designed to provide education in high-skill, high-wage, or in-demand industry sectors or occupations. The program can be as short as eight weeks but no longer than 14 weeks of instruction and can consist of 150\u2013599 clock hours, four to 15 semester credit hours, or six to 23 quarter credit hours.

Any college or career/trade school that participates in federal student aid programs can apply for approval from the U.S. Department of Education to offer these programs beginning July 1, 2026. Check with your school for program offerings.

Eligible workforce programs may be taught in-person or online, but they can't include correspondence, remedial, or English-as-a-second-language coursework. They also can't include study abroad programs.

Students enrolled in an eligible workforce program\u2014including those who already have a bachelor\u2019s degree\u2014may be eligible to receive a Pell Grant. Students must also meet other Pell Grant and general student eligibility criteria, including satisfactory academic progress, high school diploma or equivalent requirements, Pell Grant lifetime limits, etc.

Students who have earned, are enrolled in, or are accepted for enrollment in a graduate or professional degree aren\u2019t eligible to receive a Pell Grant for an eligible workforce program. Additionally, individuals who have already reached their Pell Grant lifetime eligibility limit aren't eligible for additional Pell Grant funds.

For the 2026\u201327 academic year, the maximum Pell Grant amount is $7,395. As workforce programs are shorter than an academic year, eligible students will receive a prorated or reduced amount of Pell Grant funds for enrollment in an eligible workforce program. For specific Pell Grant amounts, please contact your school\u2019s financial aid office for assistance.

Students enrolled in eligible workforce programs are not eligible for other types of federal student aid. However, you may be eligible for aid from other sources, including other federal benefits (e.g., the GI Bill), your state, institution, or private sources.

To apply for a Pell Grant, you must complete a Free Application for Federal Student Aid (FAFSA\u00ae) form for each academic year you are enrolled in the program.

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Federal Pell Grants for Eligible Workforce Programs

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