Big Changes Coming to Federal Student Aid: What Students and Parents Need to Know

Changes to Federal Financial Aid (Starting 2026)

Starting in 2026, the way students receive and repay federal financial aid will change. These updates come from a new law called the One Big Beautiful Bill Act. Below is a summary of what to expect and how it may affect you.

Federal Student Loans

Effective July 1, 2026:

• Graduate PLUS Loans: Eliminated for new borrowers.
• Parent PLUS Loans: Capped at $20,000 per year and $65,000 total per child.
• Graduate/Professional Loans: Annual caps of $20,500 (graduate) or $50,000 (professional); total caps of $100,000 and $200,000.
• Overall Lifetime Limit: $257,500 across all federal student loans (excluding Parent PLUS). Includes loans that have been forgiven, discharged, or repaid.
• Loan Proration: Loan amounts will align with enrollment status (full-time vs. part-time).
• Deferment and Forbearance: New restrictions on forbearance length; economic hardship and unemployment deferments will be eliminated.

Loan Repayment

• Only two repayment options will be available:
  • Standard Plan: Fixed payments over 10, 15, 20, or 25 years based on loan size.
  • Income-Based Repayment Plan (RAP): Payments range from 1–10% of income based on adjusted gross income (AGI), with dependent discounts and a 30-year repayment term.
• Current borrowers may keep existing plans temporarily, but some will be phased out by 2028.
• Parent PLUS loans issued after July 1, 2026 must use the Standard Plan.

FAQs on Loan Eligibility

Follow this link:  https://studentaid.gov/announcements-events/big-updates#parent-plus-new-loans 

FAFSA and Eligibility Changes

• Family Farms, Small Businesses, and Fisheries: Assets will not count in aid calculations.
• Foreign Income: Must be included when determining Pell Grant eligibility.
• Full Scholarships: If non-federal scholarships fully cover cost of attendance, students will not qualify for a Pell Grant.

If you plan to attend college or graduate school in 2026 or later, these changes may impact how much you can borrow and how you repay your loans. Parents of future students should also review the new loan caps and repayment rules carefully.

Capitol Technology University’s Financial Aid Office will continue to provide updates as more information becomes available.

Capitol Technology University's Commitment to You

With committed faculty, small class sizes, and strong job placement outcomes, Capitol Technology University is an investment in your future. Our financial aid staff is here to help you make that investment manageable. Over 90% of our students receive some form of financial assistance.

We are committed to helping you evaluate your options and develop the best financial plan for your needs, including:

• Undergraduate Tuition Guarantee: Beginning with the Fall 2019 class, tuition increases are capped at 1% per year.
• Financial Aid Assistance: Our staff will help you complete forms, understand aid types, and identify scholarship opportunities.
• Financial Aid Programs: A variety of programs are available to support students in funding their education.

Scholarship Posting Policy

Purpose

Our goal is to provide students with accurate, up-to-date, and legitimate scholarship opportunities. To maintain the integrity of our listings, all submitted scholarships must adhere to the following policy.

Eligibility to Post

Only the following entities may submit scholarships for posting:

• Accredited educational institutions
• Nonprofit organizations
• Government agencies
• Verified businesses or foundations offering legitimate scholarships
• Private individuals (with valid contact information and background verification)

Required Information

Each scholarship listing must include:

• Scholarship name
• Description and purpose
• Award amount
• Eligibility criteria
• Application deadline
• Application process (including required materials)
• Contact information (name, email, phone number, and website)
• Official link to the scholarship application or organization

Prohibited Content

We do not accept listings that:

• Require payment to apply
• Promote sweepstakes or “random draw” prizes with unclear rules
• Collect unnecessary personal data
• Contain incomplete or misleading information
• Link to unverified or potentially fraudulent websites

Duration of Posting

Approved scholarships will remain posted until the application deadline has passed.

Reporting Concerns

If you believe a posted scholarship is fraudulent or misleading, please contact us at finaid@captechu.edu.

Disclaimer

Capitol Technology University does not endorse or guarantee any scholarship listed on this site. Users should conduct their own research before applying. The university is not responsible for any loss or damage resulting from interactions with third-party organizations.

Contact Us

For questions or concerns regarding scholarship postings, please contact finaid@captechu.edu.