2026-27 Changes to Financial Aid
About the One Big Beautiful Bill Act (OB3)
The One Big Beautiful Bill Act (OB3) is federal legislation that includes significant changes to the federal student financial aid system. The law was enacted as part of a broader effort to simplify student loan programs, modify repayment options, and reduce the long-term cost of federal student lending. While many provisions take effect over several years, several important changes will impact students beginning with the 2026-2027 academic year.
The information provided on this website reflects the most current guidance available to Missouri State University. Because the U.S. Department of Education continues to issue implementation guidance, some information may change as additional details become available.
We are committed to keeping this website updated with the latest information to help students and families understand how these changes may affect their financial aid eligibility and borrowing options.
If you have questions about your specific situation, please contact the Missouri State University Office of Student Financial Aid.
Loan reduced if enrolled less than full-time
Beginning with the 2026-2027 academic year, all students enrolled less than full-time (12 hours for undergraduate students; 9 hours for graduate students) will have their annual loan eligibility prorated based on their enrollment intensity.
Students must still be enrolled at least half-time to receive Federal Direct Loans. However, students taking fewer than a full-time course load should expect to qualify for a lower loan amount than they would if enrolled full-time.
Loans for parents of undergraduate students
Beginning July 1, 2026, OB3 establishes new borrowing limits for first-time Parent PLUS Loan borrowers.
Under the new law, parents may borrow up to $20,000 per year for each dependent undergraduate student, with a maximum lifetime limit of $65,000 per dependent student. These limits apply collectively to all parents of the student, not to each parent individually.
Some families may qualify for a legacy provision, which allows continued borrowing under the previous Parent PLUS Loan limits. To qualify, all of the following conditions must be be met:
- The student was enrolled on or before June 30, 2026.
- The student or the student's parent previously borrowed a federal student loan for the student's current program of study.
- The student remains continuously enrolled in the same program through graduation or the program's published length, whichever occurs first.
Graduate and professional students
Beginning July 1, 2026, the Graduate PLUS Loan program will no longer be available to new borrowers. Graduate and professional students who need to borrow for educational expenses will instead be subject to new annual and lifetime Federal Direct Loan limits established under the One Big Beautiful Bill Act (OB3).
Students who qualify for the legacy provision may continue to borrow Graduate PLUS Loans under the previous rules. To qualify, all of the following conditions must be met:
- The student was enrolled on or before June 30, 2026.
- The student previously borrowed a federal student loan for their current program of study.
- The student remains continuously enrolled in the same program through graduation, the program's published length, or three (3) years, whichever occurs first.
For students who do not qualify for the legacy provision, the following Federal Direct Loan limits apply beginning July 1, 2026:
- Graduate students: Up to $20,500 annually, with a $100,000 lifetime limit.
- Professional students: Up to $50,000 annually, with a $200,000 lifetime limit.