On July 4, 2025, the 2025 Reconciliation Bill (One Big Beautiful Bill Act) was signed into law, which introduces significant changes to federal student aid and higher education policies that will take effect July 1, 2026. Starting July 2026, the following changes in financial aid will take place.

Any student who is receiving grants (other than Pell) and/or scholarships that equal or exceed the student’s full Cost of Attendance will not be eligible to receive a Pell grant award. The full Cost of Attendance (COA) includes estimated costs for tuition/fees, books/supplies, housing, meals, transportation and personal/miscellaneous costs.

Proration for Less Than Full-Time Enrollment

Federal Direct Subsidized and Unsubsidized Loans for students enrolled less than full time will be prorated based on actual enrollment.

Full time enrollment at LCU is defined as the following:

• 12 or more hours per term for undergraduate programs
• 6 or more hours per term for graduate programs

Proration of federal direct loans for less than full time enrollment means the amount of subsidized and/or unsubsidized loans offered will be reduced in direct proportion to a student’s actual enrollment when enrolled less than full time.

The Parent PLUS Loan has an annual limit of $20,000 per year per dependent student. Parent PLUS Loans will also be limited to a lifetime limit of $65,000 per dependent student. 

Legacy Provision: If a federal direct loan for a student was disbursed prior to July 1, 2026, the parent can continue to borrow under the prior limits until the degree has been earned or for 3 academic years – whichever comes first.

Beginning July 1, 2026, Graduate PLUS Loans will be discontinued for new borrowers. This means that students who do not have a federal direct loan disbursed prior to July 1, 2026, will not be eligible to apply for a Graduate PLUS loan.

Legacy Provision: Current borrowers can continue borrowing the Graduate PLUS loan under existing terms for up to three more academic years or until they complete the current degree program, whichever comes first. Aggregate Loan Limit for continuing graduate students will continue be $138,500 until the current degree has been earned or for three more academic years, whichever comes first.

Beginning July 1, 2026, the following borrowing limits will be enacted on federal direct student loans for new federal student loan borrowers as well as for students beginning a new program of study. The aggregate loan limits are program specific and include a $257,500 lifetime (i.e., all degrees/programs) borrowing limit.

Aggregate Loan Limits – New

Legacy Provision: Students enrolled in a program of study prior to Fall 2026 and in receipt of a federal direct loan toward that program are under the following aggregate loan limits until the degree/credential has been earned or for 3 academic years, whichever comes first.

Aggregate Loan Limits – Legacy