Financial Aid OBBBA FAQs

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, makes significant changes to federal student loans, Parent PLUS loans, Graduate PLUS loans, federal repayment plans, Pell Grants, and FAFSA-related eligibility rules.

This page reflects the OBBBA statute, the U.S. Department of Education's May 1, 2026, final loan regulations (RISE), and the May 19, 2026, final Pell Grant regulations.

On June 23, 2026, a federal court order expanded the definition of professional degree programs. The Graduate and Professional Student FAQs below explain how this change affects Cedarville students.

Additional federal guidance may still be released, and ��Vlog will update this page as new information becomes available.

Last updated: July 29, 2026

When Do the Changes Take Effect?

2025–26 Award Year: No OBBBA changes apply.
Beginning July 1, 2026: Most federal student loan, Parent PLUS, FAFSA, and Pell Grant changes take effect.
Beginning July 1, 2027: Certain deferment and forbearance changes take effect.
By July 1, 2028: Several existing repayment plans will sunset, and borrowers may need to transition to a different repayment option.

What Areas Are Changing?

Undergraduate federal student loans
Parent PLUS loans
Graduate and professional student loans
Graduate PLUS loans
Less-than-full-time borrowing limits
Pell Grant eligibility
FAFSA asset reporting
Federal repayment plans
Public Service Loan Forgiveness (PSLF)

Undergraduate Student FAQs
Graduate and Professional Student FAQs
Loan Repayment FAQs

Undergraduate Student FAQs

This Limited Exception allows certain currently enrolled students to continue borrowing under pre-July 1, 2026, federal loan rules for a limited period of time.
A student may qualify if:

They were enrolled in a program of study on June 30, 2026;
They remain enrolled in that same program; and
A federal Direct Loan or Parent PLUS Loan was disbursed for that program before July 1, 2026.

Federal law limits eligibility for this exception to the lesser of:

Three academic years, or
The student's remaining expected time to credential as of July 1, 2026.

Example:

Status on June 30, 2026	Limited Exception Eligibility
Entering year two of a four-year program	Three years
Entering year three of a four-year program	Two years
Entering year four of a four-year program	One year
Returning for a fifth year after completing four years of a four-year program	No Limited Exception

Federal regulations compare:

The published length of the program, and
The portion of the program already completed as of July 1, 2026.

The remaining time is then compared to three academic years. The shorter period determines how long the Limited Exception applies.

Students generally lose Limited Exception eligibility if they:

Withdraw from the program,
Stop attending,
Cease enrollment in the program,
Begin a different degree program after July 1, 2026, or
Are enrolled beyond expected time to credential.

Students considering a leave of absence should contact Financial Aid before making enrollment changes.

Previous borrowing counts toward federal aggregate and lifetime limits.

However, Limited Exception eligibility is determined based on:

Your current program at your current school, and
Whether a qualifying loan was disbursed for that program before July 1, 2026.

No. Federal eligibility is determined by law and cannot be accepted or declined.

Annual limits remain unchanged:

Grade Level	Dependent Student	Additional Independent Eligibility
First Year	$5,500	+$4,000
Second Year	$6,500	+$4,000
Third Year and Beyond	$7,500	+$5,000

Aggregate limits remain:

$31,000 for dependent students
$57,500 for independent students

Beginning July 1, 2026, federal Direct Loan limits are reduced proportionally for students enrolled less than full time.

Students must still be enrolled at least half time to remain eligible for federal student loans.

At Cedarville:

Full time = 12 credits
Half time = six credits

Parent PLUS loans are not subject to these reductions.

Yes. However, beginning July 1, 2026, new federal limits apply to students who do not qualify for the limited exception.

For students who do not qualify for the Limited Exception:

$20,000 annual limit per dependent student
$65,000 lifetime limit per dependent student

These limits apply across all parents combined for a particular student.

Yes. Federal guidance indicates that the new aggregate limit considers total Parent PLUS borrowing for the student, including borrowing that occurred before July 1, 2026.

Not necessarily.

Families that borrow $20,000 every year could reach the $65,000 lifetime limit before a student completes a four-year degree.

Families may wish to spread borrowing across multiple years to preserve eligibility.

No. Federal law does not provide additional Direct Unsubsidized Loan eligibility simply because a parent reaches the Parent PLUS aggregate limit.

Students may explore:

Scholarships
Employer tuition assistance
Payment plans
Private education loans

Students should carefully compare borrowing options and understand long-term repayment obligations before borrowing.

Yes. Beginning with the 2026–27 FAFSA, the following are generally excluded from FAFSA asset reporting:

Certain family businesses
Certain family farms
Certain family-owned commercial fishing operations

Yes. Beginning with the 2026–27 award year, certain foreign earned income exclusions are added back into income when determining Pell Grant eligibility.

Possibly.

Beginning in 2026–27, students generally cannot receive a Pell Grant if non-federal grants and scholarships alone equal or exceed their cost of attendance.

Examples of non-federal aid include:

Institutional scholarships
State grants
Outside scholarships

When permitted under federal regulations, Cedarville may adjust institutional aid to preserve Pell eligibility.

Yes. Beginning in 2026–27, students with an SAI at or above twice the maximum Pell Grant generally do not qualify for a Pell Grant.

For 2026–27, this SAI threshold is 14,790.

No. Federal Work-Study and Federal Supplemental Educational Opportunity Grant (FSEOG) programs continue to exist and remain subject to annual congressional funding.

Graduate and Professional Student FAQs

This Limited Exception allows certain currently enrolled students to continue borrowing under pre-July 1, 2026, federal loan rules for a limited period of time.

A student may qualify if:

They were enrolled in a program of study on June 30, 2026;
They remain enrolled in that same program; and
A federal Direct Loan or Grad PLUS Loan was disbursed for that program before July 1, 2026.

Federal law limits eligibility for this exception to the lesser of:

Three academic years, or
The student's remaining expected time to credential as of July 1, 2026.

Example:

Status on June 30, 2026	Limited Exception Eligibility
Entering year one of a two-year program	Two years
Entering year two of a two-year program	One year
Entering year three of a four-year program	Two years

Federal regulations compare:

The published length of the program, and
The portion of the program already completed as of July 1, 2026.

The remaining time is then compared to three academic years. The shorter period determines how long the Limited Exception applies.

Students generally lose Limited Exception eligibility if they:

Withdraw from the program,
Stop attending,
Cease enrollment in the program,
Begin a different degree program after July 1, 2026, or
Are enrolled beyond expected time to credential.

Students considering a leave of absence should contact Financial Aid before making enrollment changes.

Previous borrowing counts toward federal aggregate and lifetime limits.

However, Limited Exception eligibility is determined based on:

Your current program at your current school, and
Whether a qualifying loan was disbursed for that program before July 1, 2026.

No. Federal eligibility is determined by law and cannot be accepted or declined.

For most new borrowers, yes.

Beginning July 1, 2026:

Graduate PLUS loans are eliminated for new borrowers.
Students may borrow only Direct Unsubsidized Loans, subject to applicable limits.
Students who qualify for the Limited Exception may continue borrowing Graduate PLUS loans during their eligible period.

Only Direct Unsubsidized Loans are available.

Graduate PLUS loans will not be available for students who do not qualify for the Limited Exception.

The following loan limits apply to all new borrowers and students that do not qualify for the limited exception.

Graduate programs:

Annual limit: $20,500
Aggregate limit: $100,000

Professional programs:

Annual limit: $50,000
Aggregate limit: $200,000

Current Cedarville professional programs include:

Doctor of Pharmacy (PharmD)
Master of Divinity (MDiv)

Federal classifications may change based on future guidance.

Based on federal guidance, at ��Vlog, the Doctor of Pharmacy (PharmD) and the Master of Divinity (MDiv) programs meet the definition of "Professional."

The term "professional" is a regulatory distinction for federal loan eligibility purposes and does not reflect the academic expertise or rigor of a program.

All other programs are considered "graduate" level for federal loan eligibility.

Update on Federal Student Aid Guidance

��Vlog is issuing an update regarding potential federal loan eligibility increases for new students in certain graduate level programs following legal decisions related to the One Big Beautiful Bill Act (OB3).

In short, under OB3, the Department of Education defined programs as either “Professional Programs”, which are eligible for greater federal financial aid, or “Graduate Programs”, which are eligible for less financial aid. On June 23, 2026 a federal court order temporarily stayed, or halted, key parts of the U.S. Department of Education's professional degree definition. The current court order expands the list of Professional Programs eligible for greater financial aid. While the department is appealing against the ruling, it is complying with the order by currently allowing greater financial aid for the expanded definition of Professional Programs.

Four ��Vlog programs – the Doctor of Nursing Practice (DNP), Master of Science in Nursing (MSN), Master of Athletic Training (MAT), and Master of Medical Science in PA Studies (MMSc-PA) – were originally defined as “Graduate Programs” with lower financial aid limits. Now, under the court order, these four programs are currently defined as “Professional Programs” and eligible for greater financial aid limits. Although these programs are currently eligible for higher loan limits, the University, at this time, has determined that it will not increase federal loan eligibility for these four programs.

While we understand concerns about federal funding eligibility, the University made this decision because of legal uncertainty about the new guidance and the risk of future harm for student borrowers and the University if the court reverts to the original professional degree definition.

Current and prospective students should continue working with their program and financial aid offices regarding financial aid planning. Because the litigation is ongoing, additional developments are possible in the coming weeks and months.

Frequently Asked Questions

What is the current guidance about professional programs?

On June 23, a federal court order temporarily halted key parts of the Department of Education's professional degree definition. Therefore, the Department currently has an expanded list of Professional Programs eligible for higher financial aid limits.

What are the ��Vlog programs now included as professional degree programs under the interim decision?

At ��Vlog, the PharmD and MDiv programs have always been defined by the Department of Education as Professional Programs eligible for higher financial aid limits.

Due to the court order, the Department currently defines the University’s Doctor of Nursing Practice (DNP), Master of Science in Nursing (MSN), Master of Athletic Training (MAT), and Master of Medical Science in PA Studies (MMSc-PA) as professional programs. However, because the decision is not final, the University, at this time, has determined that it will not increase federal loan eligibility for these four programs. The University will closely monitor court proceedings and update federal loan eligibility as necessary.

Does this affect students who are already enrolled in these academic programs?

The professional degree definition applies to students who borrow federal loans for their programs for the first time after June 30, 2026. OBBBA provided a "legacy provision" allowing students to enroll and borrowing for their programs prior to July 1, 2026 to continue accessing Grad PLUS loans.

Does the federal court stay change Cedarville’s current professional program federal loan awarding policy following the passage of OB3?

No. The University will not provide increased federal loan eligibility based on this temporary legal decision. The University will closely monitor court proceedings and provide updated information as it becomes available. We understand concerns about maintaining current federal loan award amounts, but the University made this decision to protect students from the risk of funding reversals if the court affirms the original professional degree definition.

What are the distinctions between graduate and professional degree programs for Direct Unsubsidized loan limits?

Professional degree program students can borrow:

Up to $50,000 annually
Up to $200,000 for their program

Graduate students may borrow

Up to $20,500 annually
Up to $100,000 for their program

What sources of funding can I explore?

Private loans
Payment plans
Personal financing options
External scholarships

What happens if I borrow private loans and increased eligibility for federal student loans is confirmed through these court proceedings?

Ultimately, this is unknown because this situation has never occurred before. However, if the law ultimately permits increased federal borrowing, the Financial Aid office will work with students to assess their desire to increase federal student loans to the new limit and reduce other forms of loans that may have been borrowed.

Beginning July 1, 2026, federal Direct Loan limits are reduced proportionally for students enrolled less than full time.

Students must still be enrolled at least half time to remain eligible for federal student loans.

At Cedarville:

Full time = six credits
Half time = three credits

Beginning July 1, 2026:

A student may borrow up to $257,500 over their lifetime.

This includes:

Undergraduate borrowing
Graduate borrowing
Professional borrowing
Prior Graduate PLUS borrowing

Parent PLUS loans borrowed by parents do not count toward the student's lifetime limit.

Yes. Borrowing that occurred before July 1, 2026, counts toward applicable aggregate and lifetime limits once those limits become effective.

Students may explore:

Scholarships
Employer tuition assistance
Payment plans
Private education loans

Students should carefully compare borrowing options and understand long-term repayment obligations before borrowing.

How to Pay for Grad School: Healthcare Degrees

Yes. Beginning with the 2026–27 FAFSA, the following are generally excluded from FAFSA asset reporting:

Certain family businesses
Certain family farms
Certain family-owned commercial fishing operations

No. Federal Work-Study programs continue to exist and remain subject to annual congressional funding.

Loan Repayment FAQs

Two primary repayment options will be available:

Tiered Standard Repayment Plan

Fixed monthly payments over approximately 10–25 years based on loan balance

Repayment Assistance Plan (RAP)
Income-based payments with:

A minimum payment requirement
Interest protections established by federal law
Eligibility for Public Service Loan Forgiveness when other PSLF requirements are met

No. PSLF remains available.

Qualifying payments made under RAP count toward PSLF when all PSLF requirements are met.

Federal law phases out several existing repayment plans.

Borrowers currently using SAVE, PAYE, or ICR may need to transition to another repayment plan before July 1, 2028.

Additional guidance will be provided by federal loan servicers.

Not generally. Parent PLUS loans borrowed on or after July 1, 2026, are limited to the new Tiered Standard Repayment Plan.

Parents with older Parent PLUS consolidation loans may have transitional repayment options until federal phase-out deadlines occur.

Beginning July 1, 2027:

Eliminated

Economic Hardship Deferment
Unemployment Deferment

Remaining Option
Forbearance remains available but is generally limited to:

Nine-month increments
Twenty-four months total

Need Help?

Every student's situation is different. To discuss how these changes affect your borrowing while enrolled, schedule an appointment with Cedarville’s Financial Aid office.

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