Financial Aid Changes

What SUNY Orange Students Need to Know About the One Big Beautiful Bill (OBBA or OB2) Act

Congress passed the One Big Beautiful Bill Act  on July 3, 2025, and it was signed into law on July 4, 2025. This legislation makes significant changes to federal student loans, grants, and repayment options beginning July 1, 2026 for the 2026-27 academic year.

New federal loan rules for all borrowers

Enrollment-based loan proration:

New restrictions beginning with the 2026-27 academic year for all student loan borrowers:

If you enroll less than full time, your federal loan amounts will be prorated based on your number of credit hours. You must still be registered for 6 credit hours to receive federal loans.

Changes to your enrollment status after a loan disbursement—such as dropping or withdrawing from courses—may affect your loan eligibility and may cause adjustments to your current semester and/or future awarded loans. These adjustments could lead to a balance on your account or a lower refund. Please consult with Financial Aid prior to making schedule changes.

This applies to Direct Subsidized and Unsubsidized Loans.

This enrollment proration does not apply to Federal Parent PLUS loans.

How Much of My Loan Can I Receive?

Loan eligibility is awarded by semester as a percentage of your annual loan limit:

Students enrolled in 12 or more credits in a semester are eligible for 50% of the annual loan limit for that semester.
For students enrolled in fewer than 12 credits, eligibility is prorated as follows:

*Loan amounts in this example are based on $2,750, which represents one semester of eligibility for a dependent freshman student with a $5,500 annual loan limit. These are estimated amounts provided for illustration purposes only. Actual loan amounts may vary and are subject to origination fees or other applicable loan reductions.
Undergraduate Enrollment (Per Semester)	Percent of Annual Loan Limit	Example Loan Amount for a Dependent Freshman Student (Per Semester)*
12+ credits	50.00%	$2,750
11 Credits	45.83%	$2,521
10 credits	41.67%	$2,291
9 credits	37.50%	$2,062
8 credits	33.33%	$1,833
7 credits	29.17%	$1,604
6 credits	25.00%	$1,375
5-1 credits	0%	$0

*Loan amounts in this example are based on $4,750, which represents one semester of eligibility for an independent freshman student with a $9,500 annual loan limit. These are estimated amounts provided for illustration purposes only. Actual loan amounts may vary and are subject to origination fees or other applicable loan reductions.
Undergraduate Enrollment (Per Semester)	Percent of Annual Loan Limit	Example Loan Amount for a Independent Freshman Student (Per Semester)*
12+ credits	50.00%	$4,750
11 credits	45.83%	$4,354
10 credits	41.67%	$3,959
9 credits	37.50%	$3,562
8 credits	33.33%	$3,166
7 credits	29.17%	$2,771
6 credits	25.00%	$2,375
5-1 credits	0%	$0

EXAMPLE:

Academic Year	Credits	Total Federal Student Loan Eligibility for Year	Fall	Spring
2025-2026	6 credits	$5,500	$2,750	$2,750
2026-2027	6 credits	$2,750	$1,375	$1,375

By accepting your loan, you acknowledge that you understand these enrollment requirements and how they may impact your loan eligibility.

Your loan amount is based on the number of credits you are taking at the time funds are disbursed. If you add, drop, or withdraw classes, your loan eligibility may change. You are responsible for reviewing your schedule and understanding how enrollment changes may affect your financial aid. If you reduce your enrollment after receiving funds, you may be required to repay a portion of your loan.

Please contact the Financial Aid Office if you have questions about your loan eligibility before making any registration changes.

The Financial Aid Office can be reached at finaid@sunyorange.edu or 845-580-4884

Parent PLUS loan updates:

Federal Parent PLUS loans are limited to cost of attendance minus other aid. Beginning with the 2026-27 academic year, parents may borrow up to $20,000 per year and up to $65,000 lifetime Max for each dependent undergraduate.
Parent borrowers who took out a PLUS Loan for a student before July 1, 2026,and whose student continues in the same program may keep borrowing under the old PLUS rules for up to 3 years, or the student’s remaining expected time to credential, whichever is less.

Pell grant & other eligibility changes:

Students with a Student Aid Index (SAI) that is more than twice the maximum Pell Grant amount will no longer qualify for Pell.

Students whose scholarships or grants already cover the full Cost of Attendance may not receive additional Pell funding.

If you or any FAFSA contributors have foreign income, all foreign income must be included in the Adjusted Gross Income (AGI) used for Pell eligibility calculations.

Stay Informed and Plan Ahead

These changes represent significant updates to federal aid rules. Your eligibility and borrowing ability may be affected depending on your enrollment level, financial profile, and the timing of FAFSA filing and loan applications. Here are a few tips:

Review your enrollment status each term to anticipate loan eligibility.
Consult with Financial Aid if you receive significant non-federal aid (like scholarships) that affect Pell Grant eligibility.

For questions about how these changes apply to your situation, contact the OCC Financial Aid Office — we’re here to help you navigate these updates and plan responsibly for your education.

Additional Resources