Impacts of the One Big Beautiful Bill Act on Financial Aid
The One Big Beautiful Bill Act (OBBBA) introduced significant changes to higher education policy. This includes changes to Federal Direct Loans, repayment options, and Pell eligibility. Below is a summary of the information we currently have available.
This page was updated on July 1, 2026. As new guidance becomes available, this page will be updated. We encourage current and admitted students to check their CIA email regularly for updates.
New CIA students for Fall 2026 and their families: Rest assured that the financial aid package you’ve received from CIA is accurate. While you should familiarize yourself with these policies—especially if you have an older sibling or child already in college—these changes do not affect the merit and need awards conferred on you by the CIA.
Current CIA students and their families: You should familiarize yourself with updated policies and borrowing limits.
Parent PLUS Loans
Incoming students after July 1, 2026:
- Eligible parents may borrow a maximum of $20,000 per year, with a per student limit of $65,000.
- As a result, parents who borrow more than $16,250 per year may have limited remaining eligibility for funds during their student’s fourth year.
Legacy provisions for currently enrolled students:
- Students who have borrowed any Federal Direct Loan (Subsidized or Unsubsidized) or parents who borrowed a Federal Parent PLUS loan (for this student) before July 1, 2026 may continue applying for and borrowing these loans up to the student’s cost of attendance (minus all other aid).
- Valid for up to three academic years or until degree completion, whichever comes first.
- Students must remain continuously enrolled in a minimum of 6 credits per semester at CIA. A leave of absence will end this eligibility.
Free Application for Federal Student Aid (FAFSA)
All students after July 1, 2026:
- Family-owned assets, such as small business and primary-residence farms, are excluded from Student Aid Index (SAI) calculations
- If you have already filed your 2026–2027 Award Year FAFSA, this change in calculation has already been applied and you will not see a change to your aid.
- SAI is a number calculated from information on the FAFSA and is used to determine aid eligibility. A lower SAI indicates higher financial aid. Exclusion of these assets may lower a student’s SAI and increase the amount of aid for which a student qualifies.
Federal Pell Grant Eligibility
All students after July 1, 2026:
- Students who receive grants or scholarships from non-federal sources that cover their full cost of attendance are ineligible to receive a Pell Grant.
- Students are no longer eligible for Pell Grant when a student’s SAI equals or exceeds twice the maximum Pell award.
- The maximum Pell Grant for the 2026–2027 academic year is currently set at $7,395. Students with an SAI greater than or equal to 14,790 are ineligible.
Federal Loan Reduction/Proration
All students after July 1, 2026:
- Institutions must prorate annual loan eligibility based on a student’s part-time or full-time status.
- For example, if a student is enrolled half-time, they would only be eligible for 50% of their annual loan eligibility.
- This may impact students in CIA’s part-time bachelor’s degree program for prior associate degree graduates. All other CIA programs regular full-time enrollment.