The One Big Beautiful Bill Act (OB3), signed into law on July 4, 2025, introduces substantial changes to federal financial aid (Title IV) programs. Several key provisions may affect current and future UMW students. Below you will find a breakdown of the main chances that will impact financial aid and go into effect July 1, 2026.
Important Terms
The term “graduate student” is defined as a student enrolled in a program of study that is above the baccalaureate level and that awards a graduate credential (other than a professional degree) upon completion of the program.
- The annual Federal Direct Unsubsidized Loan limit will remain $20,500 per year, which is the same as the current annual limit.
- A new lifetime loan limit of $100,000 will apply.
The term “professional student” is defined as a student enrolled in a program of study that awards a professional degree upon completion of the program. A professional student may not receive federal student aid as an undergraduate student for the same period of enrollment.
The maximum loan amount you can borrow each academic year.
he maximum amount of unpaid principal balance minus any capitalized interest that you can have outstanding at any point in time on all of your subsidized and unsubsidized loans for undergraduate, graduate, or professional study.
The maximum loan amount you can borrow each academic year.
Terminology used by the Department of Education to describe the enrollment proration formula.
Loans
Graduate PLUS Loan
Graduate PLUS loans will be eliminated for enrollment periods that begin on or after July 1, 2026. Students are recommended to review their Unsubsidized Loan or private loans.
Parent PLUS Loan
| Current | New |
| Parent can take up to $20,500 per year per student | Parent may take up to $20,000 per year per student with a total max amount of $65,000 per student. |
$65,000 total maximum with $20,000 per year cap does not equal four years. At UMW, we are capping each year at $16,250 per year (65k total) to ensure parents have enough funding for senior year. At parent’s request, we will allow the full $20,000 per year after a cost conversation with an FA advisor.
Undergraduate/Graduate Loan Proration
Students that drop below 12 credits per semester will have their loans prorated. Please talk to an Advisor before you drop a class at any point in the semester as it can impact your loans.
| Current | New |
| Students are eligible for a flat $5,500 – $20,500 based on grade level. Must be enrolled half-time | All students are initially awarded at full time amount, but loans must be prorated throughout the year based on enrollment. |
All updates will be made in the Spring semester, based on full year enrollment.
Charts
| Borrowing Type | Undergraduate Subsidized & Unsubsidized | Graduate Unsubsidized | Professional Unsubsidized | Parent PLUS |
|---|---|---|---|---|
| Annual Limit | $5,000-$12,5000 | $20,500 | $50,000 | $20,000 |
| Aggregate Limit | $31,000-$57,500 | $100,000 (not including UG) | $200,000 (combined Graduate/ Professional, not UG) | $65,000* |
| Lifetime Limit (All levels; Parent PLUS excluded) | $257,500* | N/A | ||
* without regard to any amounts repaid, forgiven, canceled, or otherwise discharged
*This page will continue to be updated as we receive updates and further guidance from the Department of Education. Please reach out to FINAID@UMW.EDU or (540)654-2468 for any questions.