Students and families should be aware of the changes to student financial aid that take effect on July 1, according to Andy Olsen, director of financial aid at McPherson College. Significant updates to federal financial aid programs are included in new federal legislation commonly referred to as the One Big Beautiful Bill.
The federal changes will apply to all new students and new borrowers. Current students and families may also notice differences from what they have experienced in the past.
“It’s important to remember that each student and family situation is different, and the best way to navigate your options is to reach out to our office,” Olsen said.
The McPherson College financial aid office is monitoring the new federal guidelines and encouraging students and families to contact the office with questions at [email protected].
Key changes in the new guidelines
- Parent PLUS Loans (new students and new borrowers): Annual borrowing will be capped at $20,000, with a lifetime limit of $65,000.
- Legacy (limited exception) borrowers: McPherson College students that have already borrowed before the 2026-27 school year, may continue to receive Parent PLUS Loans without the new limits for up to three academic years if they continue to meet eligibility requirements for legacy status.
- Direct Loans: Loan amounts will be reduced for students enrolled in less than full-time (fewer than 12 credit hours per semester for undergraduate.) Students who drop from full-time to part-time enrollment during a semester may be subject to a reduction in loan eligibility in a subsequent semester based on the reduced enrollment level. Students should consult with an academic advisor or the financial aid office before dropping classes to understand the potential impact on aid eligibility.
- Student Aid Index (SAI): Students with an SAI at or above twice the maximum Pell Grant will no longer qualify for a minimum Pell Grants.
For more detailed information about individual student and family situations, Olsen recommends visiting the One Big Beautiful Bill update page at www.studentaid.gov for guidance on federal student aid changes.