On July 1, 2026, the “One Big Beautiful Bill” will go into effect, marking the most significant shift in federal aid in more than a generation.^[1] Among its many provisions, graduate and professional students will lose access to Grad PLUS loans, and new annual borrowing caps will now shape how many students plan and pay for advanced degrees.^[2]

The scope of this policy shift is far-reaching. A change at this level will impact how aid is distributed and how students prepare to pay for their degrees.

What is Title IV Financial Aid?

Title IV financial aid refers to the section of the Higher Education Act that governs federal student aid and programs, including:

• Pell Grants
• Subsidized loans
• Unsubsidized loans
• Work-study aid

Its rules define who qualifies, how much aid is available, and how institutions must administer these funds. For many students, Title IV provides essential financial aid for graduate school alongside institutional and private funding sources.

In July 2025, Congress changes under Public Law 119-21, commonly referred to as the One Big Beautiful Bill Act (OBBBA).^[3] This legislation carries significant implications for Title IV by:

• Mandating new eligibility criteria
• Tightening accountability for programs
• Altering loan and grant access for students, especially at the graduate level

Key Changes to Title IV Funds: What to Expect

The new federal rules taking effect July 1, 2026, will change how many students borrow, repay, and even qualify for federal aid.

Reduced Access to Federal Graduate Student Loans

Graduate and professional students will lose access to the Grad PLUS loan program beginning July 1, 2026.^[4] In place of open access, new annual borrowing caps will limit the amount of federal borrowing available to students.

A New Repayment Structure

If you have federal loans disbursed on or after July 1, 2026, your repayment options will look different from those available today. The Department of Education is moving toward two main plans:

• A revised Standard Plan, with a fixed repayment schedule.
• A new Repayment Assistance Plan (RAP), which functions similarly to today’s income-driven plans^[5]

Current income-driven repayment (IDR) plans (such as SAVE, PAYE, and ICR) will no longer be available for new loans disbursed after that date.^[6] Borrowers who already use these plans will have transition pathways that extend through July 1, 2028, but new borrowers will automatically be placed into RAP if no plan is selected.

What to Note

As a prospective graduate student, remember:

• Payments made under RAP can still count towards Public Service Loan Forgiveness (PSLF) if other eligibility criteria are met.^[7]
• Students who borrow before the cutoff date may keep access to older IDP plans for those loans.
• The date your loan goes into repayment, not when you are accepted or enrolled, determines which repayment structure applies.

Changes to the Pell Grant Criteria

The law modifies the criteria for determining Pell eligibility, including adjustments to the Student Aid Index (SAI) and changes in how family assets and income are evaluated.^[8] It also introduces a Workforce Pell Grant for short-term credential programs (150: 600 hours) tied to in-demand jobs.^[9] If you’re trying to understand the difference between program eligibility and the aid application process, questions such as “What are Pell Grants?” and “What’s the difference between a Pell Grant vs. FAFSA?” often come up. Remember, the FAFSA is the form used to determine Pell Grant eligibility.

Program Eligibility Will Depend More on Graduate Earnings

Under the new Title IV accountability rules, a program’s eligibility for federal aid will increasingly depend on how its graduates are doing financially after graduation.

The Department of Education will use metrics like Earnings Premium to measure whether programs provide real financial value to students.^[10] Suppose a program consistently falls below the federal earnings threshold. In that case, it may face consequences (including warnings to students or a loss of Title IV eligibility) until it meets the required standards again.

What this means for students:

• Some programs may continue to offer the full range of federal aid.
• Others may face new limits or reporting requirements if their outcomes do not meet benchmarks.
• Programs with consistently strong outcomes are most likely to remain fully eligible.

Borrower Protections Will Temporarily Shift

Some borrower protection policies (such as Borrower Defense to Repayment and Closed School Discharge) will also change.^[11] For many borrowers, the protections tied to these policies will revert to older regulatory versions, at least temporarily, as the Department re-establishes new baselines.

That means that if something goes wrong with a school or program, the rules and timelines for seeking loan forgiveness may differ depending on when your loan was issued.

The Disbursement Date Is the Line in the Sand

One of the simplest but most important things to remember is:

• If your loan is disbursed by June 30, 2026, you will be covered by the current rules.
• If your loan is disbursed on or after July 1, 2026, the new rules apply.

This single date determines whether you will have access to Grad PLUS loans, which repayment plans are available to you, and what accountability rules govern your program.

How the Changes Impact Prospective Alliant Students

These changes affect every Title IV-participating school in the country, including Alliant University.

Federal Aid Availability May Shift

For students starting programs after the cutoff, Grad PLUS loans will no longer be available. Instead, borrowing will may be capped at different annual limits through unsubsidized federal loans.^[12] Some professional and doctoral programs may have exceptions, but in most cases, the change will require students to plan more carefully around loan amounts and financial aid alternatives.

If your loan is disbursed before the cutoff date, current rules (including Grad PLUS and legacy repayment plans) will continue to apply for that aid.

Program Eligibility May Evolve Over Time

Because program eligibility will be tied more closely to graduate earnings, students should be aware that not every program will automatically remain eligible in the long term.

• Programs that meet or exceed federal earnings benchmarks will maintain full access to Title IV funds.
• Others may need to adapt to remain eligible.

Alliant will continue monitoring these benchmarks closely and will communicate any changes to students well in advance.

What Students Should Check

If you are planning to enroll at Alliant:

• Confirm your expected enrollment and disbursement date to see whether current or new rules will apply.
• Ask about your program’s Title IV eligibility status and whether any new accountability rules might affect it.
• Review your repayment plans to understand what to expect after graduation.
• Keep documentation of your loan and aid package for future reference.

Remember: The financial aid programs at Alliant remain fully active under the current federal rules. Students who apply and receive disbursements before June 30, 2026, will continue to be covered by today’s aid structure for those loans, even after the new rules take effect.

For those still applying for financial aid, it is recommended to start early. Completing the FAFSA on time gives you access to federal aid, institutional support, and potential scholarship opportunities.

What Prospective Students Should Do Now

The upcoming Title IV funding changes may feel distant, but for graduate and doctoral students, the most strategic time to act is now.

• Research your program early: Start by identifying your intended graduate or doctoral program at Alliant. Review program details, delivery format, and start dates to ensure your enrollment and first disbursement occurs before July 1, 2026.
• Confirm program eligibility: Check whether your chosen program is Title IV eligible and whether it meets federal accountability metrics. Remember: Programs with strong outcomes are more likely to retain full eligibility under the new earnings-based rules.
• Submit the FAFSA as soon as possible: The FAFSA is your entry point to federal aid. Submitting your application increases the likelihood of receiving the full range of aid available to you under current regulations. FAFSA application cycles for an academic year typically open on October 1 of the previous year and should be completed well in advance of program deadlines.^[13]
• Understand your borrowing and repayment options: Before July 1, 2026, students may still access Grad PLUS and existing Income-Driven Repayment (IDR) options.^[14] After the cutoff, new borrowers will be subject to new borrowing caps and the Repayment Assistance Plan (RAP).
• Keep records and timelines organized: Save copies of your FAFSA confirmation, award letter, disbursement dates, and repayment plan selections. This documentation can help ensure that your aid is administered correctly under the applicable set of federal rules.

Secure Your Funding Before It Is Too Late

Federal aid policies are shifting fast, but your ability to plan can make a difference.

The most important fact to remember is the June 30, 2026, active enrollment and disbursement cutoff. At Alliant, we understand the importance of timing. Our financial aid team ensures nothing is left to chance by helping you understand how the upcoming Title IV funding changes may affect:

• Your specific program
• Your aid eligibility
• The repayment options available to you.

Your academic goals should not be held back by uncertainty about funding. By acting early, you can keep your focus where it belongs: on your education and your future.

If you are ready to take the next step, we are ready to guide you through it. Reach out to us today!

Sources:

---

^[1] The White House. “The One, Big, Beautiful Bill is a Once-in-a-Generation Chance.” The White House. May 16, 2025. https://www.whitehouse.gov/articles/2025/05/one-big-beautiful-bill-is-a-once-in-a-generation-chance/. Accessed October 31, 2025.

^[2] Kamaron McNair. “61% of college students say they will be impacted by Trump’s ‘big beautiful’ bill: ‘Honestly, I’m cooked.’” CNBC. August 20, 2025. https://www.cnbc.com/2025/08/20/college-students-say-they-will-be-impacted-by-obbba-im-cooked.html. Accessed October 31, 2025.

^[3] Congress.gov. “H.R.1 – 119th Congress (2025-2026): One Big Beautiful Bill Act.” 119th Congress (2025-2026). July 4, 2025. https://www.congress.gov/bill/119th-congress/house-bill/1. Accessed October 31, 2025.

^[4] Baala Shakya. “Graduate and professional students limited in federal borrowing capabilities – Yale Daily News.” Yale Daily News. August 29, 2025. https://yaledailynews.com/blog/2025/08/29/graduate-and-professional-students-limited-in-federal-borrowing-capabilities/. Accessed October 31, 2025.

^[5] Federal Student Aid. “One Big Beautiful Bill Act Updates.” The U.S. Department of Education. October 10, 2025. https://studentaid.gov/announcements-events/big-updates. Accessed October 31, 2025.

^[6] Federal Student Aid. “IDR Plan Court Actions: Impact on Borrowers.” The U.S. Department of Education. July 7, 2025. https://studentaid.gov/announcements-events/idr-court-actions. Accessed October 31, 2025.

^[7] Federal Student Aid Knowledge Center. “Federal Student Loan Program provisions effective upon enactment under the One Big Beautiful Bill Act.” The U.S. Department of Education. July 18, 2025. h. . RememberPell grants areRememberttps://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2025-07-18/federal-student-loan-program-provisions-effective-upon-enactment-under-one-big-beautiful-bill-act. Accessed October 31, 2025.

^[8] Hugh T. Ferguson. “ED Details 2026-27 FAFSA and Pell Grant Eligibility Changes Due to ‘One Big Beautiful Bill Act.” National Association of Student Financial Aid Administrators. August 19, 2025. https://www.nasfaa.org/news-item/37033/ED_Details_2026-27_FAFSA_and_Pell_Grant_Eligibility_Changes_Due_to_One_Big_Beautiful_Bill_Act. Accessed October 31, 2025.

^[9] Congress.gov. “Pell Grants for Short-Term Programs: Background and Legislation in the 118th Congress”. The Library of Congress. August 24, 2023. https://www.congress.gov/crs-product/R47647. Accessed October 31, 2025.

^[10] Federal Student Aid Knowledge Center. “(GEN-24-04) Regulatory Requirements for Financial Value Transparency and Gainful Employment (Updated Sept. 16, 2024)” The U.S. Department of Education. September 16, 2025. https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2024-03-29/regulatory-requirements-financial-value-transparency-and-gainful-employment-updated-sept-16-2024. Accessed October 31, 2025.

^[11] NACAC. “Key federal student aid changes now in effect under OBBBA.” National Association for College Admission Counseling. July 13, 2025. https://www.nacacnet.org/wp-content/uploads/NACAC_Advocacy_Statement_OBBBA-DCL-Federal-Aid_2025.07.pdf. Accessed October 31, 2025.

^[12] 2025-2026 Federal Student Aid Handbook. “Annual and Aggregate Loan Limits”. Federal Student Aid Knowledge Center. July 26, 2023. https://fsapartners.ed.gov/knowledge-center/fsa-handbook/2025-2026/vol8/ch4-annual-and-aggregate-loan-limits. Accessed October 31, 2025.

^[13] Federal Student Aid. “FAFSA® Application Deadlines | Federal Student Aid.” The U.S. Department of Education. October 2, 2025. https://studentaid.gov/apply-for-aid/fafsa/fafsa-deadlines. Accessed October 31, 2025.

^[14] Federal Student Aid. “Direct PLUS Loans for Graduate or Professional Students.” The U.S. Department of Education. August 21, 2025. https://studentaid.gov/understand-aid/types/loans/plus/grad. Accessed October 31, 2025.

---

Deborah Spindler
University Director of Financial Aid, Financial Aid Administration, Alliant University

In the role of University Director of Financial Aid, Deborah Spindler leads the Alliant University Financial Aid Administration. The financial aid administration is committed to providing assistance to qualified students who would otherwise be unable to pursue their educational and professional goals.

Alliant offers federal financial aid, including Title IV financial aid, and scholarships for U.S. citizens and legal residents. Financing is available through scholarships, grants, part-time employment, and loans. The federal government, state government, Alliant, and private sources finance these programs.