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Some students who currently receive Pell Grants may no longer qualify.

• Students with a Student Aid Index (SAI) of 14,790 or higher will not be eligible for a Pell Grant.
• Students whose full cost of attendance is covered by non-federal aid (such as institutional, state, or private scholarships) will not be eligible for a Pell Grant.

This change may affect:

• Students whose scholarships cover all educational costs
• Other students whose aid covers all educational costs

Pell Grants will become available for certain short-term career training programs.

Eligible programs must:

• Be 150–600 clock hours
• Last 8–15 weeks
• Meet state and employer workforce needs
• Have strong completion and job placement outcomes

Not all short-term programs will qualify. TSTC has submitted three programs for approval: Industrial Maintenance, Airframe & Powerplant, and Maritime Welding. We are currently waiting for approval decisions.

Parent PLUS Loan Limits

New Parent PLUS borrowers will be limited to:

• $20,000 per year per dependent student
• $65,000 total per dependent student

Previously, parents could borrow up to the student’s full cost of attendance, including tuition, fees, and living expenses.

New Federal Loan Lifetime Cap

• Total federal student borrowing will be capped at $257,500 across all federal student loans (excluding Parent PLUS Loans).

Reduced Loan Eligibility for Part-Time Students

Federal Direct Loans are reduced for students enrolled less than full-time. Under the One Big Beautiful Bill Act (OB3), loan amounts are prorated based on enrollment level, but students must still be enrolled at least half-time to qualify for a loan. 

Key Details & Rules

• Eligibility Minimum: You must be enrolled at least half-time (typically 6 credits) to qualify for any Direct Loan funds. 
• Full-Time Threshold: Full-time status is generally 12 credits per semester (or 36 credits across an academic year) 
• Proportional Calculation: If you enroll in fewer than full-time credits, your maximum annual loan limit is reduced by that same fraction.

Student Loan Repayment Changes

Repayment options will be simplified to:

• A standard repayment plan
• A new income-based plan called the Repayment Assistance Plan (RAP)

Current income-driven repayment plans will be phased out by 2028.

• Some current Pell Grant recipients may lose eligibility beginning in 2026–27.
• Federal loans may no longer cover the full cost of attendance.
• Students and families may need to explore additional funding options.
• Financial planning and borrowing decisions will become increasingly important.