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Beginning July 1, 2026, the One Big Beautiful Bill Act (OB3) will introduce changes to federal student financial aid programs. These changes will take effect in the 2026-2027 academic year and may affect your loan eligibility, how much you can borrow, and your repayment options. This page explains what these changes mean for incoming and current students at UVU.
This page includes the most recent details and information available. Additional updates can also be found on the Studentaid.gov webpage.
Under the new federal loan rules, annual loan limits (the total amount you can borrow per year) are prorated based on the number of hours a student is enrolled each semester. All students enrolled less than full time (undergraduate and graduate) in a semester may receive reduced loan amounts, even if they remain eligible for federal loans. This means you may only borrow a portion of the full time loan amount that matches your enrolled hours. You must still be enrolled at least half time in order to receive federal loans.
Dropping below full time can affect your current loan disbursement, your remaining loan eligibility for the year, and how much you may need to pay out‑of‑pocket.
Before dropping a course or changing your enrollment status, we encourage you to contact the Financial Aid and Scholarships Office.
All newly enrolled students who receive federal aid for the 2026-2027 academic year will fall under the new OB3 program policies. These changes go into effect on July 1, 2026, and may impact how you plan and pay for college, including the types of loans you can receive and how much you can borrow.
If you enroll and receive your first federal loan on or after July 1, 2026, the new OB3 program policies will apply to you. Here’s what you need to know:
If you enroll and receive your first federal loan on or after July 1, 2026, the new OB3 program policies will apply to you. Here’s what you need to know:
Current students enrolled in Spring or Summer 2026 who have already borrowed federal direct loans may qualify for legacy rules, depending on their enrollment and borrowing history. However, some of the new changes may still apply.
Legacy eligibility is determined by federal law and is automatically applied if a student qualifies. It cannot be chosen, waived or declined.
If you’ve borrowed your first federal loan for your current program and received your aid before July 1, 2026, you may be eligible for legacy rules. Here’s what that means:
If you begin a new program, different loan rules will apply. Here’s what’s changing:
If you borrow your first federal loan for your current program on or after July 1, 2026, new rules will apply. Here’s what’s changing:
If you’ve borrowed your first federal loan for your current program before July 1, 2026, you may be eligible for legacy rules.
Your federal student loan repayment plan options depend on when your federal loans were disbursed.
If your loans were disbursed before July 1, 2026, you may be able to remain in your current repayment plan for a limited time. Some existing repayment plans will be phased out, and you may need to select a new plan in the future. Your loan servicer will notify you if action is required.
For loans disbursed on or after July 1, 2026, federal student loan repayment will be limited to the following options:
Parent PLUS loans are not eligible for income‑based repayment under these new rules.
To compare repayment options and estimate monthly payments under the new plans, use the Loan Simulator. Additional information about federal loan repayment is available on our Loans webpage.
