One Big Beautiful Bill Act Updates

All Federal Direct Loans (Subsidized, Unsubsidized and Graduate PLUS Loans) effective with the 2026-2027 academic year are subject to the schedule of reduction (SOR, also known as loan proration) for less than full time enrollment (does not apply to Parent PLUS Loans).

All Federal Direct student loans continue to require a minimum of half-time enrollment to be eligible (6+ credits undergraduates/4+ graduates). Effective with the 2026-2027 academic year, eligibility for loans is based on actual enrolled credits per quarter, meaning that less than full time enrollment (12+ undergraduates/8+ graduates) would reduce the amount of eligible loan.

Students who are "locked" on full time enrollment and drop coursework after may be have future loan disbursements reduced to ensure compliance with the SOR.

Grad PLUS Loan Program: 

The Grad PLUS Loan program has been discontinued for new graduate students and graduate students who have not borrowed Federal Direct Loan during their graduate program at Western Washington University and received a disbursement prior to July 1, 2026. These students will be ineligible to borrow Federal Direct Graduate PLUS Loan. They will remain eligible to borrow up to $20,500 Unsubsidized Loan annually.

Interim Exception (also known as Legacy Provisions)-Graduate students who borrowed through the Federal Direct Loan program at Western Washington University during their graduate program and and received a disbursement prior to July 1, 2026, will be eligible to borrow Graduate PLUS Loan for up to three years or through the end of their program, whichever is sooner. Changes in program or breaks in enrollment discontinue access to the interim exception. There is no annual or aggregate limit for Graduate PLUS Loans, but they cannot exceed the student’s Cost of Attendance.  Graduate PLUS Loans are subject to the Schedule of Reduction quarterly for less than full time enrollment (8+ credits).

Annual, Aggregate & Lifetime Limits:

Annual Limits- Graduate students are eligible for up to $20,500 in Federal Direct Unsubsidized Loans ($50,000 for professional degree seeking- WWU does not currently offer any programs that would fall within this annual loan limit). Students loan eligibility may be reduced per quarter if their enrollment is less than full time (see Schedule of Reduction information); or a future quarter's loan may be reduced if a student reduces their enrollment after a disbursement is made at full time.

Professional Student Borrowers- Although there are higher limits for students in professional degree programs, WWU does not currently offer any programs that fall within this federal designation.  

Aggregate Limits- Graduate students who did not receive a disbursement prior to July 1,2026 through the Federal Direct Loan program at Western Washington University during their graduate program may borrow up to an aggregate limit of $100,000 in Federal Direct loans (excludes undergraduate loan borrowing or Parent PLUS).  

If the student received a disbursement of Federal Direct Loan within their current program prior to July 1,2026, the interim exception provision applies (aggregate maximum of $138,500 for all undergraduate and graduate Subsidized and/or Unsubsidized Loans and no aggregate maximum or lifetime limit for Grad PLUS Loans).

Lifetime Limits- There is a lifetime borrowing limit of $257,500 for all federal student loans, excluding Parent PLUS Loans.

Parent PLUS Loan Program

Parent borrowers whose dependent undergraduate students did not receive a disbursement of Federal Direct Loan prior to July 1, 2026, are subject to the new annual and lifetime loan limits for the Federal Direct Parent PLUS Loan program.

Interim Exception (aka Legacy Provisions)-Parent PLUS interim exception provision applies to undergraduate students who have received a disbursement of Federal Direct loans at Western Washington University prior to July 1, 2026 (Subsidized, Unsubsidized or Parent PLUS Loan).  These students are not subject to a PLUS Loan annual or lifetime limit.  The interim exception is based on 4 years for an undergraduate degree regardless of enrollment status.  Therefore students may remain within the interim exception provision for up to 3 years or until they complete their current program, whichever comes first.  The student cannot be enrolled for more than 4 years total since the student has commenced their program and fall within the interim exception.  (Example, the student is a second year student effective with the 2026-2027 academic year, they would be considered in the interim exception for the 2027-2028 and 2028-2029 academic year since this does not exceed 4 total academic years since they commenced their program.)  (Example 2- the student is a 4th year student effective with the 2026-2027 academic year, this represents the final year that the student would be eligible for the interim exception based on a program length of 4 years.)

Parent PLUS Loans cannot exceed the cost of attendance.  Changes to the program or breaks in enrollment will discontinue access to the interim exception.  Transfer students are ineligible for the interim exception.

Annual & Aggregate Limits:

Annual Limits- For each dependent student, the total maximum amount of Parent PLUS Loan that all parent borrowers (combined) can borrow per year on behalf of the student is $20,000 unless the borrower and/or student fall within the interim exception (no annual limit not to exceed cost of attendance).

Aggregate Limits-For each dependent student, the total maximum amount of Parent PLUS Loan that all parent borrowers (combined) can borrow on behalf of a student is $65,000 (without regard to amounts forgiven, repaid, canceled or discharged) unless the student or borrower falls within the interim exception.

New annual and lifetime limits go into effect for all borrowers who have not received a disbursement of loan prior to July 1, 2026 at Western Washington University in their current program.

Annual Limits-

Undergraduates students-Parent PLUS Borrowers are limited to $20,000 per dependent student (if not under the interim exception provisions).  

There are no changes to the annual loan eligibility for dependent or independent undergraduate students if the student maintains full time enrollment for the entirety of the academic year. Less than full time enrollment will be subject to loan the schedule of reduction.

Graduate Students-Graduate students are limited to Federal Direct Unsubsidized Loan of $20,500 per year if the student maintains full time enrollment for the entirety of the academic year. Less than full time enrollment will be subject to the schedule of reduction.  

Graduate PLUS Loan eligibility pertains only to those who fall under the interim exception.

Professional Programs-While there are not any programs that fall under this designation at WWU at this time, the limit of Federal Direct Unsubsidized Loan is $50,000.

Lifetime & Aggregate Limits-

Undergraduates Students- Parent PLUS Borrowers are limited to an aggregate limit of $65,000 per dependent student (if not under the interim exception).  

There are no changes to the aggregate limits for dependent or independent undergraduate students (and postbaccalaureate students)- $31,000 for dependent students and $57,500 for independent students.  

Graduate Students-New borrowers receiving their first disbursement after July 1, 2026 in their program at Western Washington University- $100,000 aggregate limit (excludes undergraduate loans).

Borrowers who have received their first disbursement prior to July 1, 2026 in their program at Western Washington University- $138,500 aggregate limit (including all undergraduate loans)

All Borrowers- total of no more than $257,500 in lifetime loans (excludes Parent PLUS Loans)

All borrowers of federal student loans should complete Exit Counseling at studentaid.gov when withdrawing, graduating or dropping below half-time enrollment to understand their rights and responsibilities as borrowers and to explore the various repayment plans, deferment and forbearance requirements or loan forgiveness.

The One Big Beautiful Bill Act (OBBBA) introduced some changes to the Income-Based Repayment (IBR) plan.  For more information please review studentaid.gov.  Two student loan repayment plans will be available to borrowers who take out a new loan on/after July 1, 2026.

Parent PLUS Loan borrowers must have consolidated their PLUS loans into Direct Consolidation Loans and have enrolled in the Income-Contingent Repayment (ICR) Plan immediately before enrolling in the IBR Plan.  Parent PLUS borrowers whose PLUS loans have not been consolidated will continue not to have access to the IBR Plan.  

PLUS Loan borrowers should review information about applicable deadlines for consolidation and estimated timelines for processing consolidation requests.