By Bodhi Haugen

A recently passed federal law referred to by some institutions as the One Big Beautiful Bill Act (OBBBA) was signed on July 4, 2025, and will bring significant changes to financial aid and loans for current and future students at Cal Poly Humboldt. 

Some of these changes went into effect immediately, while others are scheduled to begin in the following months.

The One Big Beautiful Bill Act: 2026-27 Changes to Federal Financial Aid article from Washington State University says that beginning July 1, 2026, if students are enrolled in less than 12 units, annual loan limits will be proportionately reduced for students accordingly. New borrowers enrolled in less than full-time will only be able to take loans proportional to their current credit load, with a requirement of at least half-time enrollment. If a student is taking six units in a semester, the student will be eligible 50% less in loan funding. 

The Federal Student Aid Changes from the OBBBA by the National Association of Student Financial Aid Administration (NASFAA) says that Graduate PLUS loans will no longer be available starting July 1, 2026, which will primarily affect graduate students. Students may be eligible for an exception if the borrower has a federal direct loan made before July 1, 2026.

Pell Grant eligibility will also change on July 1, 2026. The NASFAA says that under current rules, total financial aid cannot exceed a student’s cost of attendance. The proposed changes would further restrict Pell Grant eligibility for students whose aid already meets or exceeds that limit. Previously, students have been able to be fully funded by scholarships and receive the Pell Grant on top of their full cost of attendance. According to NASFAA, students whose Student Aid Index (SAI) is at least twice the amount of the current Pell Grants maximum of $7,395 will no longer be eligible. 

Current undergraduate students at Cal Poly Humboldt who are enrolled in half-time or receiving various scholarships may be impacted in the following months. Current graduate students and parents are also at risk of foreseeable changes to loan restrictions.

Changes to student loan repayment, the federal direct loan program, need analysis for Free Application for Federal Student Aid (FAFSA), grants and much more have been included in the final version of the bill that was signed into law. More information about these alterations can be found at nasfaa.org and the National Association of Independent Colleges and Universities at naicu.edu.

Bodhi Haugen is a journalism major and writer for the Lumberjack at Cal Poly Humboldt. Bodhi is on KRFH and enjoys  reading, writing, photography, and art. You can reach him at bgh27@humboldt.edu.