Last updated: February 6, 2026
On July 4, 2025, the One Big Beautiful Bill Act (H.R. 1) was passed by the 119th Congress and signed into law. Beginning July 1, 2026, important changes will reshape how families pay for higher education. We will provide updated guidance as it becomes available.
We anticipate that final guidance regarding OB3 will be available on or before July 1, 2026. The information on this page is provided to assist students and families with navigating and preparing for the changes to the Federal Student Aid programs.
General Information
OB3 introduces changes to how families will pay for college based whether they are current borrowers or new borrowers. Your borrower status will determine which rules and loans limits apply, as well as the amount of Federal Aid that you may be eligible to receive moving forward. Some students and families may need to explore additional financing options, including private loans, to help cover remaining Tuition, Fees, and out-of-pocket costs.
Changes to the Federal Student Loan Programs
Effective July 1, 2026
Parent PLUS Loan Eligibility for Undergraduate Students
Parents with a student entering CMC for the for the 2026-2027 Academic Year are subject to the following limits for the Federal Direct Loan PLUS Loan:
- MAXIMUM: $20,000 per student, per Academic Year**
- Aggregate Limit: $65,000 per student
Parents with students currently attending CMC may continue to borrow under the current Federal Direct PLUS Loan Limits for up to three (3) Academic Years. *
*If the parent or student borrowed a Federal Direct Loan on or before July 1, 2026, and the student remains in their current program of study.
**Parents who borrow the maximum amount of $20,000 for their student’s first three(3) years of study will have limited Parent PLUS Loan eligibility for their student’s final year of study.
Part-Time Students
Beginning July 1, 2026, institutions must consider a student’s enrollment status when determining Federal Loan eligibility. Students enrolled less than full-time may receive reduced loan funding. Additional details and final guidance are forthcoming.
Pell Grant Eligibility
Beginning July 1, 2026, students with a Student Aid Index (SAI) that exceeds twice the maximum Pell Grant award will not be eligible to receive a Federal Pell grant.
Additional Financing Options
Private Loan Funding
Private Loan programs are unsecured educational loans offered by banks, credit unions, and other financial institutions. These loans must be repaid with interest. Interest rates vary based on your creditworthiness and/or the creditworthiness of a co-signer.
CMC partners with ELMSelect to provide opportunities to review different loan options and select the lender that best fits your needs. CMC is lender-neutral and cannot recommend a specific lender to students or families.
Now is the time to check your credit score to determine your creditworthiness. You may obtain a free credit report from Equifax, TransUnion, or Experian to review for errors, pay down existing debt, and make on-time payments to improve your credit score before applying for Private Loan funding.
Securing a Co-Signer:
A cosigner is someone who agrees to share financial responsibility for a private loan, assuring the lender that the loan will be repaid. This may be a parent, guardian, or trusted relative with a strong credit history who supports your educational goals.
Please Note: The co-signer becomes legally responsible for repayment if you are unable to repay the loan.
Outside Scholarship Funding
Outside scholarships are awarded by organizations not affiliated with CMC and must be reported to CMC’s Office of Financial Aid. Students are encouraged to explore scholarship search engines such as FastWeb and Finaid.org to assist you with your search. Please remain vigilant against scholarship scams.
Outside Scholarships may be based on academic achievement, personal qualifications, or field of study and may be offered by:
- Community Groups
- Private Organizations
- Employers
- Fraternities or Sororities
- Foundations
- Professional Associations
Frequently Asked Questions (FAQ’s) Regarding OB3
Students entering CMC after July 1, 2026, should evaluate how OB3’s new loan limits align with program costs, timeline to completion, and available financial resources. Early planning can help to avoid unexpected expenses once the new rules take effect.
Review your Federal Loan history at StudentAid.gov to determine when you first borrowed loans for your current program.
Current Federal Loan Borrower: You received a Federal Loan disbursement before July 1, 2026
New Federal Loan Borrower: You did not receive a Federal Loan disbursement before July 1, 2026
A legacy provision allows parents with existing Parent PLUS Loans for dependent students to continue to borrowing under the current loan limits for up to three (3) Academic Years, provided the student remains in the same program of study.
Parents who borrow a Parent PLUS Loan after July 1, 2026, are limited to $20,000 per dependent undergraduate student per Academic Year, with an aggregate limit of $65,000 per student.
Example: A parent has one dependent student currently attending CMC and another dependent student beginning CMC in Fall 2026. If the parent or current student borrowed a Federal Direct Loan before July 1, 2026, the parent may continue borrowing under the current loan limits for up to three (3) Academic Years for the continuing student. For the dependent student entering in Fall 2026, Parent PLUS Loan limits will be $20,000 per Academic Year, with a $65,000 aggregate limit.
Yes. Under OB3, loan eligibility is based on enrollment status. If you enroll less than fill-time, your loan amount will be prorated.
Current borrowers are protected for up to three (3) Academic Years. If you do not complete your degree requirements within this timeframe, you will be considered a new borrower and will be subject to the new loan requirements.