Stay Informed
The Odessa College Financial Aid Office will continue updating students and families as additional federal guidance becomes available regarding implementation of the 2026–2027 federal financial aid changes.
Additional Official Resources:
Odessa College Financial Aid Office
Beginning July 1, 2026, significant changes to federal student aid programs will take effect due to new federal legislation known as the One Big Beautiful Bill Act (OB3 or OBBBA). These changes impact federal student loans, repayment plans, and Parent PLUS Loans. Odessa College is committed to helping students and families understand these updates and prepare for the 2026–2027 academic year.
Official Federal Resources:
Important Federal Student Loan Changes
Beginning with the 2026–2027 academic year, Parent PLUS Loans will have new fixed borrowing caps:
- Annual Limit: $20,000 per student
- Lifetime Limit: $65,000 per student
Previously, parents could borrow up to the student’s full Cost of Attendance. Families may need to consider additional payment options or alternative funding sources to cover remaining educational expenses.
Additionally, Parent PLUS borrowers taking out new loans after July 1, 2026, may have fewer repayment plan options available.
Department of Education / Federal Student Aid References:
Federal Direct Subsidized and Unsubsidized Loan annual and aggregate borrowing limits for undergraduate students remain in effect based on dependency status and grade level. Students should review current borrowing limits and remaining eligibility carefully.
Current Undergraduate Aggregate Loan Limits:
- Dependent Undergraduate Students: $31,000
- Independent Undergraduate Students: $57,500
Department of Education / Federal Student Aid References:
Beginning with the 2026–2027 academic year, federal student loans may be prorated (reduced) for students who:
- Graduate students enrolled less than full-time (fewer than 9 credit hours) who borrow a Federal Direct Loan will have their loan limit prorated based on their actual enrollment level. If a student borrows less than the prorated limit, their loan may not be adjusted.
This means students attending fewer credit hours or graduating with only a final semester remaining may qualify for reduced annual loan limits.
Examples:
- A student enrolled half time may receive less than the full annual loan limit.
- A student graduating after one semester may only qualify for a portion of the annual loan eligibility based on remaining credit hours.
Actual eligibility depends on:
- Enrollment level
- Cost of attendance
- Other financial aid received
- Remaining aggregate loan eligibility
Some students and parents may continue borrowing under current federal loan rules for up to three additional years if they meet specific eligibility requirements.
Students:
- Enrolled in the same academic program before July 1, 2026, AND
- Previously borrowed a federal student loan for that program before July 1, 2026
Parents:
- The student remains in the same academic program enrolled before July 1, 2026, AND
- The parent previously borrowed a Parent PLUS Loan for that student before July 1, 2026
Changing degree programs after July 1, 2026, may result in loss of grandfathered eligibility.
Beginning July 1, 2026, new federal student loans will generally offer two repayment options:
- Standard Repayment Plan
- Repayment Assistance Plan (RAP)
Current income-driven repayment plans such as SAVE, PAYE, IBR, and ICR are expected to phase out over time.
Under RAP, monthly payments will be based on income and family size, with payments generally capped at up to 10% of income.
How Students and Families Can Prepare
Odessa College encourages students and families to begin planning now by:
- Reviewing current federal loan balances at StudentAid.gov Dashboard
- Determining eligibility for the Legacy Provision
- Planning for possible funding gaps due to new borrowing limits
- Exploring scholarships, payment plans, savings options, and alternative funding sources
- Monitoring updates from the Odessa College Financial Aid Office
Pell Grant and Financial Aid Updates
Federal Student Aid (FSA) continues to release guidance regarding changes included in the OB3 legislation. Final federal regulations are still pending, and some implementation details may change as additional guidance becomes available from the U.S. Department of Education.
- For the 2026-2027 aid year, students with a Student Aid Index (SAI) exceeding twice the maximum Pell Grant award will no longer be eligible for Pell Grant funding.
- Students whose scholarships and grants meet or exceed their full Cost of Attendance (COA) will not be eligible to receive a Pell Grant.
- There are no legacy provisions or exceptions to the Pell Grant changes. They apply to all students (current, newly admitted, and prospective).