Changes to Federal Student Loan Programs Beginning July 1, 2026

Related: One Big Beautiful Bill Act Updates

With the passage of the One Big Beautiful Bill Act (OB3) on July 4, 2025, changes to the Federal Direct Loan program will take effect beginning July 1, 2026, for the 2026-27 award year. Some of these changes may affect the amount students and parents can borrow through federal student loans while attending Brookdale Community College. This provides an initial overview of those changes so students and families can plan ahead.

Please note: The U.S. Department of Education has not yet released final regulations implementing these changes. As a result, the information provided in this letter is based on current statutory guidance and is subject to change once final rules are issued.

Proration of Federal Direct Loan Amounts for Students Enrolled Less Than Full Time

Beginning July 1, 2026, Brookdale Community College will be required to prorate Federal Direct Subsidized and Unsubsidized Loan amounts for students who are enrolled less than full time (fewer than 12 credits in a term). The prorated loan amount will be based on the number of credits a student is enrolled in at the time the loan is disbursed.

For example: A dependent, first-year student is normally eligible to receive up to $5,500 in Federal Direct Subsidized and Unsubsidized Loans per academic year ($2,750 in the fall term and $2,750 in the spring term). If the student is enrolled in at least 12 credits in the fall term, they may receive the full $2,750 fall loan amount. However, if the student is enrolled in 6 credits instead of 12, the loan amount will be prorated to 6/12 (50%) of $2,750, or $1,375.

This change may result in lower loan amounts than students have received in the past if they are enrolled less than full time.

Changes to Annual and Lifetime Aggregate Limits for Federal Direct Parent PLUS Loans

Who is affected?

• Parents borrowing a Federal Direct Parent PLUS Loan for the first time on or after July 1, 2026.

What is changing?

• Parents will be limited to borrowing up to $20,000 per year per student.
• Parents will be limited to borrowing a maximum of $65,000 per student in total.

These new limits will apply only to Parent PLUS loans first disbursed on or after July 1, 2026. If a parent has received a Parent PLUS loan prior to July 1, 2026, or if the student has received a Federal Direct Subsidized or Unsubsidized Loan prior to that date, the new limits will not apply for three academic years following July 1, 2026, as long as the student remains enrolled in the same academic program.

We understand that changes to federal student loan programs may raise questions. Additional communications will be shared as implementation details are finalized.

Please email us if you have any questions: faoffice@brookdale.edu.

Office of Financial Aid, Brookdale Community College
Phone: (732) 224-2020 — One Stop Call Center