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The One Big Beautiful Bill Act (OBBBA) includes significant changes to federal financial aid and student loans beginning July 1, 2026.
Some students who currently receive Pell Grants may no longer qualify.
This change may affect:
Pell Grants will become available for certain short-term career training programs.
Eligible programs must:
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.
New Parent PLUS borrowers will be limited to:
Previously, parents could borrow up to the student’s full cost of attendance, including tuition, fees, and living expenses.
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
Repayment options will be simplified to:
Current income-driven repayment plans will be phased out by 2028.
The Department of Education has not published final guidance for implementing the One Big Beautiful Bill Act. As a result, answers to the FAQ’s are based on our current understanding of the law and are subject to change.
Undergraduate – A minimum of 12 financial aid-eligible credit hours per term is considered full-time in a term; however, 36 hours over the course of the fall, spring and summer terms are needed to be considered full-time over the course of the the academic year.
If you are an undergraduate enrolled for 12 financial aid-eligible credit hours in the fall term and reduce your schedule to less than full-time before your fall loan is disbursed, TSTC will have to reduce your fall loan based on the new rules.
For example:
In this example, if you end up taking more than 12 hours in the spring, then your spring loans could be increased if the total of your fall, spring and summer hours equals at least 36.
This example serves as general guidance. Individual loan eligibility can vary depending on other eligibility factors associated with a student’s record.
For example, purposes, let’s say you are an undergraduate who enrolled for 12 hours in the fall and we assume you enrolled 12 hours in the spring and 12 hours in the summer, for a total of 36 hours, which is 100% of the minimum requirements to be full-time in an academic year. Let’s also assume you are a freshman, and the fall portions of your loans disbursed. At the time of disbursement, your loans looked like:
After the fall disbursement, you drop or withdraw from 12 hours to 9 hours. That means you are now on pace to complete 33 hours (9 in fall and 12 in spring and 12 in summer) of 36, or 92% (rounded) of the minimum full-time hours. You are subject to the Schedule of Reduction (SOR). The adjustments will be as follows:
You may receive a bill from TSTC to repay the reduced loan amounts from the fall term.
If, in the spring you end up actually enrolling in enough hours to bring your total between the three terms back up to 36, then you may be eligible to receive an increase in your spring loan disbursement so the total loan for the entire year equals the original full-time amount.
Students who are less than full-time often have a Cost of Attendance that is lower than that of full-time students. A reduced Cost of Attendance can impact Parent PLUS Loan eligibility.
The One Big Beautiful Bill Act introduces significant changes to federal student aid programs, and while some provisions are clear, many others require further clarification from the U.S. Department of Education.
We understand that students, families, and staff have questions—and so do we.
As we receive more guidance and official updates, we will continue to revise and expand this webpage to reflect the most accurate and actionable information available.
Federal Pell Grants are awarded to undergraduate students who display exceptional financial need and have not earned a degree.
The Federal Supplemental Educational Opportunity Grant (SEOG) is meant for undergraduate students with exceptional financial need.
Thanks to The TSTC Foundation and a generous community, we offer dozens of scholarships that do not have to be repaid.
The Work-Study program lets you earn your aid with a part-time job, as long as you remain enrolled in at least six credit hours.
Another option: you can apply for Federal Direct student loans.
Your parents may be able to help you with the Parent Loan Undergraduate Student (PLUS) program.
To be eligible for financial aid, you must meet a series of qualifications, apply by the deadline, and receive verification from TSTC.
An institutional financial aid professional is expected to always maintain exemplary standards of professional conduct in all aspects of carrying out his or her responsibilities, specifically including all dealings with any entities involved in any manner in student financial aid, regardless of whether such entities are involved in a government-sponsored, subsidized or regulated activity. In doing so, a Texas State Technical College financial aid professional should:
You have enough to deal with and we don’t want you to go through the process alone. That’s why we have Enrollment Coaches to walk you through admissions and enrollment. They’ll make sure to get you ready to start your new journey.