How will the “Big Beautiful Bill” affect financial aid?

Reconciliation legislation nicknamed the “One Big Beautiful Bill Act” was signed into law on July 4, 2025. Most provisions are scheduled to take effect on July 1, 2026, so we do not anticipate any changes to 2025-26 financial aid packages.

What’s staying the same:

• Pell Grant eligibility is largely unchanged. While earlier drafts proposed major changes, most were not included in the final law.
• Subsidized loans remain available to undergraduate students. Previous drafts sought to eliminate subsidized loans, however the law does not include this provision.
• Current loan limits for undergraduates are unchanged. The law maintains the current limits for annual/aggregate borrowing.
• Public Service Loan Forgiveness (PSLF) continues to count residency and internship time toward forgiveness.

What’s changing (effective July 1, 2026):

• Parent PLUS loans will be capped at$20,000 per year, $65,000 total per dependent student.
• Graduate PLUS loans will be eliminated. Current borrowers will be allowed a grace period.
• Loan amounts will be prorated based on enrollment level (e.g. part-time students receive less).
• SAI calculation will allow exemption of assets for family farms, small businesses, and family-owned commercial fisheries.
• Pell Grant eligibility calculation will now include foreign income.
• Some loan repayment plans will be phased out. After July 1, 2026, new loans can be repaid using only two plans (standard plan with fixed monthly payments or income-based repayment plan, called RAP). Current borrowers must transition to a new repayment plan by July 1, 2028.

Questions? Reach out to the Wartburg Financial Aid Office (finaid@wartburg.edu or 319-352-8262).