Understanding The Federal Financial Aid Changes (OB3)

The One Big Beautiful Bill Act (OB3) is a federal law that changes how federal student loan eligibility is calculated. Beginning with the 2026-2027 academic year, all colleges and universities participating in federal financial aid programs, including Excelsior University, are required to follow these regulations.

Key Takeaway – Your federal loan eligibility is now more directly tied to the number of credits you enroll in each trimester. Taking more credits may increase the amount you are eligible to borrow, while taking fewer credits may decrease the amount you can borrow.

Your Enrollment Matters More Than Ever

• Under previous federal rules, students who were enrolled at least half-time could generally borrow their full annual federal loan amount. Under OB3, federal loan eligibility is calculated based on the number of credits you take each trimester.
  • Undergraduate Students
    • Half-time enrollment: 6 credits per trimester
    • Full-time enrollment: 12 or more credits per trimester
  • Graduate Students
    • Half-time enrollment: 3 credits per trimester
    • Full-time enrollment: 6 or more credits per trimester
• Students who attend half-time will generally be eligible for about half of their annual federal loan amount, while students who attend full-time will generally be eligible for their full annual loan amount. Each credit you add or drop may affect the amount of federal loan funding available to you.

Loan Amounts Are Determined Each Trimester

Your annual federal loan eligibility is divided across the trimesters in your academic year. The amount available for each trimester depends on how many credits you are taking during that trimester. If your enrollment changes, your financial aid offer may also change.

Loan Funds Can No Longer Be Moved Between Trimesters

In the past, students could often request more federal loan funding in one trimester and less in another. Under OB3, federal loan amounts are tied to the number of credits you take in each trimester. Because of this, loan funds generally cannot be moved from one trimester to another. This makes it especially important to plan your enrollment and financing needs before each trimester begins.

Initial Financial Aid Offers

To help students understand their potential eligibility, Excelsior will initially package federal loans based on half-time enrollment:

• Undergraduate students: 6 credits per trimester
• Graduate students: 3 credits per trimester

Your financial aid package may be adjusted if your actual enrollment differs from the enrollment level used to create your initial financial aid offer.

Graduate PLUS Loans

Graduate PLUS Loans are no longer available for most new borrowers beginning July 1, 2026. Students who need additional funding may wish to explore scholarships, employer tuition assistance, military and veteran education benefits, payment plans, or private education loans.

Borrowing Limits

Federal law now limits how much students can borrow through federal student loans.

• Undergraduate students: up to $12,500 per year, up to $57,500 total
• Graduate students: $20,500 per year, up to $100,000 total
• Professional students: $50,000 per year, up to $200,000 total
• Most students are now subject to a lifetime federal student loan limit of $257,500. Any federal student loans you borrowed in the past count toward this limit, even if those loans have already been paid off. If you have attended multiple institutions or borrowed federal student loans in the past, those amounts may affect your remaining eligibility.

Parent PLUS Loans

Parent PLUS Loans remain available but are now limited to:

• Approximately $20,000 per year
• Approximately $65,000 per student over the life of the loan program.

Current Students – Planning to Take More or Less Than Half-Time?

If you plan to enroll in more or fewer credits than the half-time enrollment level used to create your financial aid offer, you should submit a Student Status Change Form. The Student Status Change Form allows the Office of Financial Aid to review your anticipated enrollment and, when appropriate, adjust your financial aid package to better reflect the number of credits you intend to take.

How to Submit a Student Status Change Form

1. Login into the Financial Aid Online System.
2. Navigate to the menu (three lines) located in the top left corner of your screen.
3. Select Student Request Forms.
4. Choose the Student Status Change Form for the trimester you wish to update.
5. Complete and submit the form for review.
6. You will receive an email notification if changes are made to your financial aid offer.

Important: If your federal loan eligibility increases as a result of a Student Status Change Form submission, you must log back in to your financial aid portal and review the updated award. Any new or increased loan amounts are not automatically accepted. You must review the revised offer and choose to accept, reduce, or decline the updated loan amount before it can be processed.

Questions? Reach out to us!

We understand these changes may affect how you plan and pay for your education. While Excelsior University is required to comply with federal regulations, our Financial Aid team remains committed to helping students understand their options and stay on track toward completing their degrees!