H.R. 1: One Big Beautiful Bill Act

Annual limits for Federal Direct Stafford loans remain unchanged for undergraduate students.

Federal Direct PLUS Loan

• New borrowers will be subject to new loan limits of $20,000 per dependent student, per academic year, with a lifetime aggregate limit of $65,000 per dependent student.
• Borrowers who meet the Legacy Rules can continue to borrow under the current (pre-OB3) loan limits.

Legacy Rules

• Must be enrolled in an eligible program of study at CSP -and- received a loan for that program of student prior to June 30, 2026.
• Legacy rules apply for the lesser of
  • 3 academic years OR
  • The total length of the program
• Any break in enrollment will break the Legacy Rule provision and the new OB3 limits apply.

Federal Pell Grant

• Full Cost of Attendance Scholarships/Grants: Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible.
• Implements an SAI (Student Aid Index) cap for Pell eligibility



Federal Direct Unsubsidized Stafford Loan

• Annual loan limits remain at $20,500 for graduate students.
• A new aggregate limit of $100,000 (excluding undergraduate loans) was established.
• Legacy Rules allow a time-limited exception for current borrowers and currently enrolled students to continue borrowing under the current (pre-OB3) limits.

Federal Direct Graduate PLUS Loan

• Eliminates the Graduate PLUS loan for new borrowers starting July 1, 2026
• Legacy Rules allow a time-limited exception for current borrowers, currently enrolled students to continue to borrow under the current (pre-OB3) limits.

Legacy Rules

• Must be enrolled in an eligible program of study at CSP -and- received a loan for that program of student prior to June 30, 2026.
• Legacy rules apply for the lesser of
  • 3 academic years OR
  • The total length of the program
• Any break in enrollment will break the Legacy Rule provision and the new OB3 limits apply.



Loan Schedule of Reduction for Less than Full-time Enrollment

• Students enrolled in less than full-time will have their federal loans reduced to match their enrollment level. This applies to students enrolled in all degree levels and any Federal Direct Student Loans.

Lifetime Loan Limit

• New lifetime loan maximum limit of $257,500 for all federal student loans combined, including Graduate PLUS loans.

Legacy Rules

• Must be enrolled in an eligible program of study at CSP -and- received a loan for that program of student prior to June 30, 2026.
• Legacy rules apply for the lesser of
  • 3 academic years OR
  • The total length of the program
• Any break in enrollment will break the Legacy Rule provision and the new OB3 limits apply.

Repayment Options

• Repayment options will be streamlined into two plans:
  • New tiered standard repayment plan
  • New income-driven repayment plan
• Existing income-contingent repayment plans sunset in 2028.
• For more information regarding your loan payments and/or repayment plans, contact your loan servicer by logging into your studentaid.gov account.



OB3 adjusted the definition of a professional student and narrowed it down to what programs are considered. At CSP, we do not have any professional programs. Therefore, our students would fall under the graduate/doctoral definition, not the professional one.

OB3 has a Legacy Rules for current students who remain continuously enrolled in the same program and have previously had a direct loan, for a limited timeframe. The Financial Aid Office will be reviewing accounts to determine who meets the Legacy Rules

There is no appeal or process to decline the OB3 rules or the limited Exceptions.

All student borrowed Federal Loan will be subject to a Schedule of Reduction (SOR) if you are enrolled for less than full-time. This means as long as you are registered at least full-time (12 credits for UG and 6 credits for Grad/Doct) you will not see a change in how loans are disbursed. If you are less than full-time at disbursement, the loan amount will be reduced based on your enrollment percentage. For example: if you are an undergraduate student registered for 9 credits in the fall semester, your loan will be reduced to 75% of the full time amount.

• Many of the OB3 changes mean that students and families may no longer be able to rely on federal funding to fully cover their costs or the full cost of attendance, and will need to look at private loan options.
• Private loan options will consider the creditworthiness of the borrower and/or co-signer; each lender will have its own criteria. Unfortunately, not all borrowers will qualify for a private loan, or could qualify for only a portion of the education program. Some capable borrowers may not qualify for private loans due to insufficient credit history.
• You can find CSP’s private lending list here; you are free to choose any lender you wish, including lenders not included on CSP’s list. CSP’s private lending list are lender and loan options who have made loans to CSP students in the past. If you plan to use a lender not included on the list, please reach out to [email protected] and let us know.

Any change to your full-time enrollment will likely trigger a review of your awards and eligibility.

• To be eligible for the Legacy Rules, students must
  • Remain continuously enrolled in a program of study at CSP
  • Received a federal direct loan for that program prior to July 1, 2026
  • For the period of the lesser of:
    • The difference between the total length of the program and the time period the student as already completed
    • Until the degree or credential is earned – or –
    • 3 academic years
• The Financial Aid Office will be monitoring the Legacy Rules eligibility. Contact your FA Counselor with additional questions.

• For undergraduate programs, 12 or more credits per term is considered full-time
• For graduate programs, 6 credits or more per term is considered full-time

A new borrower is defined as a student who did not borrow any type of Federal Direct Loan for their current program of study at CSP before July 1, 2026.

While both parents can borrow a Parent PLUS loan if approved, the new loan limits apply per dependent student, not per parent. The annual amount stays $20,000 between the two parents.

*New* Aggregate Loan Limits

* This refers to programs defined by the Department of Education as a “Professional Degree.” At CSP, this refers to none of our programs.

Legacy (pre-OB3) Aggregate Loan Limits