Financial Aid and the One Big Beautiful Bill Act (OB3)
2026-27 Financial Aid Update: Navigating the OB3
In accordance with the federal One Big Beautiful Bill Act (OB3) — sometimes referred to as OBBBA — Baldwin Wallace University is providing essential updates regarding financial aid for the 2026-27 academic year. These changes will apply to all prospective and current BW undergraduate and graduate students.
The BW Financial Aid staff remains committed to guiding our students through these policy shifts. We are working diligently to stay informed as the U.S. Department of Education releases new directives. Baldwin Wallace will continue to provide timely, accurate information to our campus community to ensure your financial plan remains on track.
| Loan Type | Who is Affected? | New OBBBA Rules | Legacy Rule Pre-July 2026 Borrowers |
|---|---|---|---|
| Parent PLUS | Parents of Undergraduates | $20k/year cap; $65k total limit | Can still borrow up to the full cost of attendance |
| Undergrad Direct | All Undergraduate Students | No changes to lifetime limits | No changes |
| Grad PLUS | Graduate Students | Phased out for new borrowers | Available for 3 more years if already borrowing |
| Grad Unsubsidized | Graduate Students | $20.5k/year cap; $100k total limit | Available for 3 more years if already borrowing |
Student Loan Updates for 2026-27
The following are key impacts of OB3 on your federal student loan options.
Undergraduate Direct Student Loans
The good news for our undergraduates: The OB3 does not change eligibility or lifetime limits for Federal Direct Subsidized and Unsubsidized loans. Your current borrowing structure remains the same.
Annual Limits for Part-Time Students
Starting with the 2026-27 academic year, federal loan limits for students enrolled less than full-time will be adjusted. Your annual loan limit will be calculated in direct proportion to your enrollment level. For example, a student enrolled half-time will see their loan limit adjusted accordingly (rounded to the nearest percentage).
New Graduate Student Loan Limits
For graduate students starting new programs after July 1, 2026, the following federal limits apply:
- Up to $20,500 per year (Lifetime limit: $100,000).
Important Notes for Current BW Graduate Students
- If you have already borrowed an Unsubsidized Loan for your current program, you will keep your existing loan limits and access to Grad PLUS loans as long as you stay in that program.
- The federal government is phasing out the Federal Direct Grad PLUS Loan for new borrowers starting July 1, 2026. See details in the parent loan section below.
Parent Loan Updates for 2026-27
The following are key impacts of OB3 on your federal parent loan options.
Parent PLUS Loan Changes
Under the new federal guidelines, the total combined amount parents may borrow is capped at $20,000 per year per dependent student, with a lifetime (aggregate) limit of $65,000 per student.
- Legacy Provision: If you already have a Federal Direct Loan made before July 1, 2026, for a student currently enrolled at BW, you may continue to borrow under the previous, higher limits. This exception lasts for three academic years or until the student completes their degree (whichever comes first), provided they remain in their current program of study.
Grad PLUS Loan Phase-Out Timing
The federal government is phasing out the Federal Direct Grad PLUS Loan for new borrowers starting July 1, 2026.
- If you are already a Grad PLUS borrower: You can continue to use this loan for up to three more years or until you finish your current BW program.
- If you are starting a new program: To be eligible for Grad PLUS under the "old" rules, you must begin your program and borrow the loan before July 1, 2026.
Frequently Asked Questions
Questions?
We're here to help. We know these federal changes can feel complex. If you have questions about how these limits affect your specific path at BW, please reach out to the BW Financial Aid Office.
- Email: finaid@bw.edu
- Phone: (440) 826-2080
- In-person: Bonds Hall, Room 104