FAFSA 2026-27 Brings Loan Caps and Pell Grant Reforms
The FAFSA 2026-27 application launched ahead of schedule on September 24, 2025 — the earliest opening in the program’s history.
Alongside the early launch, sweeping changes under the new One Big Beautiful Bill (OBBBA) are reshaping federal student aid:
• Parent PLUS loans are capped at $20,000 per year per student, with a $65,000 lifetime limit.
• Graduate PLUS loans have been eliminated; borrowing ceilings are set at $100,000 for graduate students and $200,000 for professional programs.
• Pell Grant eligibility is tightened, excluding some students whose Student Aid Index (SAI) is more than double the maximum Pell amount.
• Certain family assets — such as small farms, businesses, and fishing operations — no longer need to be reported.
For HBCU families—many of whom rely heavily on Pell grants—the implications are significant. The earlier FAFSA rollout provides more time for campus aid offices to prepare offers, but the stricter rules could impact students near eligibility thresholds.
Call to action: File early, watch for school deadlines that may close as soon as January, and speak with financial aid offices to understand how the new rules affect your situation.
Fill out your FAFSA today at studentaid.gov
