One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, which made changes to Federal Student Aid. Institutions are awaiting official guidance from the Department of Education; however, below is a summary of how parts of this law may impact students at GateWay Community College beginning with the 2026-2027 academic year.
The information shared on this page is currently evolving. Information on this page reflects the most current guidance available. Information may change as federal rules and guidelines are established. The U.S. Department of Education may issue additional updates.
Frequently Asked Questions
Beginning with the 2026-2027 award year:
Students whose Student Aid Index (SAI) is equal to or exceeds twice the maximum Federal Pell Grant amount for the award year are not eligible for the grant, even if they otherwise meet the minimum Pell eligibility requirements.
- For example, if the maximum Pell award for 2026–27 is $7,395 and a student has an SAI index of 14,790 or higher, the student will not be eligible for a Federal Pell Grant.
Students who receive non-federal grants or scholarships (such as state, institutional, or private aid) that equal the full Cost of Attendance are ineligible for a Federal Pell Grant.
The foreign earned income exclusion amount reported on the FAFSA will be added to the adjusted gross income when determining Federal Pell Grant eligibility.
Beginning with the 2026-2027 award year:
Annual Loan Amount Proration for Less than Full-Time Enrollment: Students enrolled less than full-time must have their annual loan limit reduced proportionally.
Student Loan Repayment Options: Repayment options will be streamlined into two plans: a new tiered standard repayment plan and a new income-driven repayment plan called the Repayment Assistance Plan (RAP).
- GateWay recommends that borrowers contact their loan servicer or review information available from the Department of Education concerning Federal Loan Repayment Options.
Students must be enrolled in at least 6 semester credit hours to be eligible for loan funds. Those enrolled less than full-time would only be eligible for a portion of the annual loan limit. Full-time status is defined as 12 or more semester credits per term.
Full-Time Enrollment Example: You are a student enrolled in 12 credits for the fall term and expect to also enroll in 12 credits for the spring term. At 12 credits each term, you are eligible for 100% of the annual loan limit of a subsidized loan of $3500 as a first-time, first-year student. This would be offered to you as $1750 for fall and $1750 for spring ($3500 for the year).
| Independent Student | ||
|---|---|---|
| Grade Level | Subsidized* | Unsubsidized* |
| Freshman (0-29 credits) | $3500 | $6000 |
| Fall = $1750 Subsidized / $3000 Unsubsidized Spring = $1750 Subsidized / $3000 Unsubsidized |
||
| Sophomore (30-59 credits) | $4500 | $6000 |
| Fall = $2250 Subsidized / $3000 Unsubsidized Spring = $2250 Subsidized / $3000 Unsubsidized |
||
| Junior/Senior (60-120 credits) | $5500 | $7000 |
| Fall = $2750 Subsidized / $3500 Unsubsidized Spring = $2750 Subsidized / $3500 Unsubsidized |
||
| Dependent Student | ||
|---|---|---|
| Grade Level | Subsidized* | Unsubsidized* |
| Freshman (0-29 credits) | $3500 | $2000 |
| Fall = $1750 Subsidized / $1000 Unsubsidized Spring = $1750 Subsidized / $1000 Unsubsidized |
||
| Sophomore (30-59 credits) | $4500 | $2000 |
| Fall = $2250 Subsidized / $1000 Unsubsidized Spring = $2250 Subsidized / $1000 Unsubsidized |
||
| Junior/Senior (60-120 credits) | $5500 | $2000 |
| Fall = $2750 Subsidized / $1000 Unsubsidized Spring = $2750 Subsidized / $1000 Unsubsidized |
||
*Loan amounts may differ based on a student’s borrowing history
Part-Time Enrollment Example: You are a student enrolled in 6 credits for the fall term and expect to also enroll in 6 credits for the spring term. At 6 credits each term, you would be eligible for 50% of the annual subsidized loan limit of $3500 as a first-time, first-year student. This would be offered to you at $875 for fall and $875 for spring ($1,750 for the year).
| Independent Student | ||
|---|---|---|
| Grade Level | Subsidized* | Unsubsidized* |
| Freshman (0-29 credits) | $1750 | $3000 |
| Fall = $875 Subsidized / $1500 Unsubsidized Spring = $875 Subsidized / $1500 Unsubsidized |
||
| Sophomore (30-59 credits) | $2250 | $3000 |
| Fall = $1125 Subsidized / $1500 Unsubsidized Spring = $1125 Subsidized / $1500 Unsubsidized |
||
| Junior/Senior (60-120 credits) | $2750 | $3500 |
| Fall = $1375 Subsidized / $1750 Unsubsidized Spring = $1375 Subsidized / $1750 Unsubsidized |
||
| Dependent Student | ||
|---|---|---|
| Grade Level | Subsidized* | Unsubsidized* |
| Freshman (0-29 credits) | $1750 | $1000 |
| Fall = $875 Subsidized / $500 Unsubsidized Spring = $875 Subsidized / $500 Unsubsidized |
||
| Sophomore (30-59 credits) | $2250 | $1000 |
| Fall = $1125 Subsidized / $500 Unsubsidized Spring = $1125 Subsidized / $500 Unsubsidized |
||
| Junior/Senior (60-120 credits) | $2750 | $1000 |
| Fall = $1375 Subsidized / $500 Unsubsidized Spring = $1375 Subsidized / $500 Unsubsidized |
||
*Loan amounts may differ based on a student’s borrowing history
For official updates, visit One Big Beautiful Bill Act Updates.