One Big Beautiful Bill
Important Notice:
Federal regulations related to the One Big Beautiful Bill Act (OB3) continue to evolve. As additional federal guidance becomes available, the information on this page may change.
Students and families are encouraged to review this page regularly and contact the Office of Financial Aid before making enrollment, borrowing, withdrawal, transfer, or program-change decisions.
Effective with the 2026–2027 academic year, federal regulations under the One Big Beautiful Bill Act (OB3 or OBBBA) change several federal financial aid programs.
These federal changes may affect:
- Federal Direct Subsidized Loans
- Federal Direct Unsubsidized Loans
- Federal Direct Graduate PLUS Loans
- Federal Parent PLUS Loans
- Federal Pell Grants
These are federal regulatory changes and are not institutional policy changes made by Texas A&M University–Victoria.
Students and families are strongly encouraged to review the information below and contact the Office of Financial Aid before making enrollment or borrowing decisions.
Federal Pell Grant Changes
Effective with the 2026–2027 Academic Year
Beginning with the 2026–2027 academic year, federal regulations under OB3 will make several changes to Federal Pell Grant eligibility and FAFSA calculations.
These changes may affect:
- Pell Grant eligibility
- Student Aid Index (SAI) calculations
- How family income and assets are evaluated
- How Pell Grants interact with scholarships and other financial aid
Student Aid Index (SAI) Changes
The Student Aid Index (SAI) is the federal formula used to determine financial aid eligibility based on FAFSA information.
Beginning with the 2026–2027 award year:
- New federal income and asset rules will apply
- Certain previously excluded income may now count toward eligibility calculations
- Some family assets may once again be excluded from FAFSA calculations
Foreign Earned Income Changes
Beginning in 2026–2027, foreign earned income excluded from federal taxation will now be included in federal Pell Grant calculations.
Family Farm Exemption
Beginning in 2026–2027, family farms on which the family resides will generally no longer be counted as FAFSA assets.
Small Business Exemption
The FAFSA will once again exclude the net worth of certain family-owned small businesses with 100 or fewer employees.
Commercial Fisheries Exemption
Certain family-owned commercial fishing businesses and related fishing assets may now be excluded from FAFSA asset reporting requirements.
Pell Grants and Scholarships
Federal regulations prohibit a student’s total financial assistance from exceeding the student’s allowable Cost of Attendance.
Beginning in 2026–2027, the Office of Financial Aid may adjust federal, state, or institutional financial aid to ensure a student’s total financial assistance does not exceed the student’s allowable Cost of Attendance.
In situations where a student receives gift aid that exceeds Cost of Attendance and the aid cannot otherwise be reduced, Federal Pell Grant funds may need to be eliminated and returned.
Federal regulations do not allow institutions to reduce or prorate Federal Pell Grant awards to resolve Cost of Attendance overawards.
Important Reminder
Dropping courses, withdrawing, failing to begin attendance, or enrolling less than full-time may affect:
- Pell Grant eligibility
- Federal loan eligibility
- Satisfactory Academic Progress (SAP)
- Future financial aid eligibility
Loan Reduction for Less-Than-Full-Time Enrollment
Students who enroll and remain full-time may receive federal student loans up to the annual loan limit and Cost of Attendance, whichever is less.
Effective with the 2026–2027 academic year, federal regulations require federal student loan eligibility to be reduced proportionally for students enrolled less than full-time.
Loans Subject to Reduction:
- Federal Direct Subsidized Loans
- Federal Direct Unsubsidized Loans
- Federal Direct Graduate PLUS Loans (for eligible continuing graduate borrowers)
Federal Parent PLUS Loans are not subject to reduction based on enrollment status.
Full-Time Enrollment Definitions
Undergraduate Students:
- 12 financial aid-eligible credit hours per semester
- 24 credit hours during the academic year
Graduate Students:
- 9 financial aid-eligible credit hours per semester
- 18 credit hours during the academic year
Important Reminder:
Dropping courses, withdrawing, failing to complete courses, or enrolling less than full-time may:
- Reduce current or future financial aid disbursements
- Reduce annual loan eligibility
- Require repayment of financial aid already received