The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, introduced major changes to U. S. federal student loan programs. These updates take effect on July 1, 2026.
Please carefully review the information below to learn what these changes mean for you.
This page will be revised as the U.S. Department of Education releases additional information. If you have questions, please contact financial.aid@smu.ca.
A new provision requires institutions to lower loan limits for students in proportion to their enrolment intensity. This means that Subsidized and Unsubsidized Loan amounts will be prorated based on course load. In simple terms: the fewer credits you take, the lower your annual loan limit.
For the purposes of US loan administration (including confirming enrolment through NSLDS and for proration of loans), Saint Mary’s University uses the following credit-hour requirement:
The following example scenarios use a dependent, undergraduate student in their senior year. A full-time student (registered in a minimum of 12 credit hours in both the Fall and Winter Terms) at this academic level is eligible for:
The student described above is registered in 9 credit hours in both the Fall and Winter Terms. As they are enrolled in what is considered three-quarter time enrolment intensity, they are eligible to receive 75% of their annual loan limits:
Since the student’s enrolment level is the same in both terms, the loan will be divided equally between the Fall and Winter Terms.
The student described above is registered in 9 credit hours in the Fall Term (three-quarter time) and 15 credit hours in the Winter Term (full-time). Their total course load for the academic year equals full-time student overall, so they remain eligible for the full annual loan amount. However, the loan disbursements will not be split evenly.
In the Fall, they will receive a reduced disbursement because they are enrolled at three-quarter time:
The remaining portion of the Fall loan will be held until the Winter Term. If they remain enrolled full-time, they will receive:
Previously, students who qualified for their full annual loan limit received 50% in the Fall Term and 50% in the Winter Term. Starting July 1, 2026, if a student is registered in different enrolment intensities over the course of the academic year, then their disbursements may not be divided equally.
If you withdraw from a course, you may have received more loan funding than your enrolment intensity dictates (an “overaward”). The amount of this overaward may be deducted from your loan disbursement in the following term.
Previously, Parent PLUS loans were capped at the student’s total Cost of Attendance, minus any other aid received, and there was no aggregate loan limit. Moving forward, they are capped at $20,000 USD per dependent student (not per parent) per year, with a lifetime (aggregate) loan limit of $65,000 USD. This new aggregate loan limit is without regard to any amounts repaid, forgiven, cancelled or otherwise discharged.
Legacy provision: Parent PLUS borrowers (with loans issued before July 1, 2026) may continue using the 2025-26 borrowing limits for up to three additional academic years or until the student completes their program, whichever comes first, provided the student remains continuously enrolled in the same program/degree at Saint Mary’s University.
The U.S. Department of Education still needs to confirm the definition of “professional” programs.
Legacy provision: existing borrowers (with loans issued before July 1, 2026) may continue borrowing for their current program for up to three academic years or until they finish the program, whichever comes first, provided they remain continuously enrolled in the same program/degree at Saint Mary’s University.
Page last updated: July 22, 2026