Financial Aid and Scholarships - The University of Utah

The Reconciliation Bill of 2025 (Public Law 119-21) was signed into law on July 4, 2025; this is also known as the One Big Beautiful Bill. Among its many components are changes to (or related to) the federal financial aid programs. In order to provide information and to help address questions and concerns regarding the impending changes, we are providing our current understanding of the provisions of the bill related to financial aid. Because details are still emerging—including the U.S. Department of Education’s announcement of its intent to negotiate new regulations around these changes—we will update our understanding as clarifying information is released. Below is a high-level summary of the changes, an FAQ, and a more-detailed chart that compares the current rules to changes in the Reconciliation Bill. Of note is that the majority of provisions are effective beginning with the 2026-27 school year, although there are some exceptions. The summaries, FAQ, and chart are for information purposes only and should be considered tentative; this information is not advice because details are still emerging.

Changes to annual and aggregate borrowing limits for Unsubsidized loans and affects Graduate and Professional students; Undergraduate annual and aggregate borrowing limits remain the same.
Introduces new lifetime borrowing limit cumulative across all federal student loan programs (excludes ParentPLUS)
Introduces new annual and aggregate borrowing limits on ParentPLUS loans
Eliminates GradPLUS program
Introduces new requirements to prorate annual borrowing amounts for students enrolled less than full-time
An expansive range of changes to student loan repayment terms, options, and plans

More details: cURRENT VS NEW RULES faq

Introduces overaward concept for Pell Grants and, thus, requires Pell Grant be reduced for students who also have institutional aid up to or exceeding student’s Title IV Cost of Attendance
Allows Pell Grant eligibility for short-term academic programs (total length of program is less than 15 weeks); also known as “Workforce Pell”
- No such short-term programs currently known to exist at the U
Eliminates Pell Grant eligibility for students whose Student Aid Index (SAI) is more than twice the amount of the maximum Pell Grant award for that year – also referred to as “eliminates Pell Grants for families with large assets”

More details: cURRENT VS NEW RULES faq

Exempts reporting certain net assets in calculation of financial need; (i.e., no longer report on FAFSA the net asset value of family farm and/or family-owned small business)
Any foreign income must be included in the AGI reported on the FAFSA

more details: cURRENT VS NEW RULES faq

Introduces new accountability measure: Any academic program whose graduates fail the “low earnings outcomes” measure for 2 out of 3 years, future students enrolling in that program will not have eligibility for the Federal Direct Student Loan programs (Subsidized and Unsubsidized)

more details: cURRENT VS NEW RULES faq

Following a multi-year pause on repayments, student loan interest resumed accrual beginning September 1, 2023 and payments began starting in October 2023.

Below are links to several resources to assist borrowers with repayment of their federal student loans: