Forms- Financial Aid

Please note that the information provided is based on our current understanding of the OBBBA's implementation by the Department of Education and is subject to change pending final updates, which are expected in the first half of 2026. Once our office receives these final changes, we will update this page accordingly.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, contains significant changes for current federal aid (Title IV) programs that will affect how federal funds are disbursed for the 2026-2027 school year and onward.

The OBBBA includes:

Adjustments to eligibility requirements for the Pell Grant
Modifications to the Federal Direct Parent PLUS program
Elimination of the Federal Direct Grad PLUS program for new borrowers

To best support students and their families, the Office of Financial Aid is actively staying informed on these upcoming changes and training its staff to address any needs or questions students may have about their federal aid.

Pell Grant Eligibility Changes

Students whose non-federal aid (institutional scholarships, external scholarships, etc.) fully covers their Cost of Attendance (COA) budget will no longer be eligible for the Federal Pell Grant.

Example: An undergrad student living on campus with in-state tuition has a COA of $33,656 for the year. If the student receives scholarships and state aid that meets or exceeds the COA, they will not be eligible for Pell.

Students whose Student Aid Index (SAI) is greater than twice the maximum Pell amount will no longer be eligible for the Federal Pell grant.

Example: The maximum Pell amount for the 2026-2027 aid year is $7,395. If a student has an SAI greater than 14,790, the student is not eligible for Pell.

Undergraduate Direct Student Loan Changes

New Aggregate loan limit of $57,500 for all federal student loans combined.
Students who attend less than full-time (24 credit hours total combined from fall and spring) for the year in their program of study will now have their loan amounts reduced.

Example: An undergrad student enrolls for 10 credit hours in their program for the fall and 12 credits in their program for the spring. Their total credit hours for the year are 22 hours, which is less than 24 credit hours for full-time status. Therefore, the student’s direct loans (subsidized and unsubsidized) will pay out at a reduced rate.

Legacy Provision: If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to graduate, whichever is less at the same institution. If a student transfers to another school, even to take one course, they lose legacy provisions.

Graduate Direct Student Loan Changes

New Aggregate loan limit of $100,000 for federal student loans ($257,500 for undergraduate and graduate federal student loans combined, including Grad PLUS loans).
Students who attend less than full-time (18 credit hours total combined from fall and spring) for the year in their program of study will now have their loan amounts reduced.

Example: A grad student enrolls for 6 credit hours in their program for the fall and 9 credits in their program for the spring. Their total credit hours for the year are 15 hours, which is less than 18 credit hours for full-time status. Therefore, the student’s direct loans (unsubsidized and Grad PLUS) will pay out at a reduced rate.

Students who are currently enrolled in a program of study at TROY will be eligible to continue in this loan program to the completion of your program as long as you maintain continuous enrollment. Note: Withdrawals and gaps will cause loss of legacy provision.

Parent PLUS Direct Loan Changes

New Annual Limit of $20,000 per dependent student (under the age of 24)
New Aggregate Limit of $65,000 per dependent student
Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete their program, within the published length of time to do so, whichever is less.
New Borrowers will need to consider alternative funding such as private loans once loan limits are exceeded. Recommendation: The Office of Financial Aid highly suggests that parents consider requesting a maximum of $16,250 per year in Parent PLUS loans to ensure their student(s) have Parent PLUS eligibility for all four years of school.

On the Parent PLUS Loan application, parents should only select the “maximum amount” option if they wish to borrow the full $20,000 for the year. To ensure adequate Parent PLUS Loan eligibility for the duration of the student’s undergraduate program, parents should request a lesser amount on the application. For example, request $16,250 per year for total (aggregate) eligibility to be split equally for a four-year program.

Graduate PLUS Loan Changes

The Grad PLUS loan program will be eliminated for borrowers. New graduates will need to consider alternative funding such as private loans.
Legacy Provision: Students with an existing Grad Plus Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less.

Federal Aid Changes for 26/27