Federal Aid Changes for Undergraduate Students (Fall 2026 and Forward)

Updated to reflect the Better Borrowing for Students (BBB) regulations

Beginning July 1, 2026, new federal regulations will update how undergraduate students and families access federal financial aid. These changes apply to all undergraduate programs, including the SCI-Arc B.Arch program.

Direct Subsidized & Unsubsidized Loans

Undergraduate students will continue to have access to both federal loan programs.

What stays the same:

• Annual loan limits remain unchanged

• Eligibility is based on financial need (Subsidized) or general eligibility criteria (Unsubsidized)

• Interest benefits for Subsidized Loans remain in place

Annual loan limits continue to range from $5,500 to $12,500 depending on grade level and dependency status.

Parent PLUS Loans

The Parent PLUS Loan program will remain available for parents of dependent undergraduate students.

What’s changing:

• Borrowing is still allowed up to the student’s full Cost of Attendance (minus other aid)

• The BBB regulations introduce new borrower protections, including:

  • Greater transparency around repayment expectations

  • Improved disclosures regarding parent debt

  • Possible strengthened credit and debt assessments

These changes aim to promote responsible borrowing while maintaining access to funding.

Aggregate (Lifetime) Loan Limits

Undergraduate lifetime borrowing caps remain in place.

• Dependent undergraduates: Up to $31,000 total

• Independent undergraduates: Up to $57,500 total

These totals include both Subsidized and Unsubsidized Loans.

Pell Grants

Pell Grant eligibility rules remain unchanged under the new regulations.

• Award amounts continue to be based on the Student Aid Index (SAI)

• Maximum Pell awards will adjust annually

• Enrollment intensity continues to determine partial eligibility

Federal Loan Changes for SCI-Arc Graduate Students (Fall 2026 and Forward)

Updated for the 2026–2027 Academic Year

Beginning July 1, 2026, the U.S. Department of Education is implementing new federal loan regulations that will affect how incoming SCI-Arc M.Arch students finance their education. Architecture is not classified as a federal professional degree, so it will follow the standard graduate loan structure under these new rules.

Direct Unsubsidized Loan — New Annual Limit

Starting with the 2026–2027 academic year, graduate students may borrow:

Up to $50,000 per academic year

• No credit check required

• Interest begins accruing upon disbursement

• This is the only federal loan available to graduate students beginning 2026–2027

No Aggregate (Lifetime) Loan Limit

Under the new BBB regulations:

There is no lifetime borrowing cap for graduate students.

Students may continue receiving the $50,000 annual Direct Unsubsidized Loan for every eligible academic year they are enrolled, even if their total federal borrowing exceeds:

• $150,000

• $200,000

• Or more

As long as the student remains in an eligible program and meets financial aid requirements, federal borrowing may continue annually.

Graduate PLUS Loan — Eliminated

The Graduate PLUS Loan program will be discontinued for all graduate and professional students beginning in 2026–2027. Graduate students will no longer have access to federal loans beyond the $50,000 annual unsubsidized limit.

Funding Gaps and Additional Resources

Most SCI-Arc graduate students have educational expenses that exceed $50,000 per year. Any remaining costs must be covered through:

• Private student loans (credit- and income-based)

• Personal funds

• External scholarships

Example:
If the annual Cost of Attendance is $92,000 and a student receives a $10,000 scholarship, federal aid would cover $50,000.
The remaining $32,000 must be funded through private loans or other resources.

What Students Should Do Next

• Review the estimated Cost of Attendance for your program

• Determine how much private funding may be needed

• Apply early for private loans, as approval depends on credit and income

• Contact SCI-Arc’s Financial Aid Office for a personalized estimate or counseling

Questions? We’re Here to Help

The SCI-Arc Financial Aid Office is available to guide students and families through the new regulations and assist with planning for the 2026–2027 academic year.

Please contact us if you have questions about your financial aid eligibility or loan options.

✅ Continued FAFSA Simplification

• The streamlined FAFSA form remains in place, reducing the number of questions and improving user experience.

• Most students will answer fewer than 40 questions (down from over 100 in older versions).

🔄 Student Aid Index (SAI) Replaces EFC

• The Student Aid Index (SAI) continues to be used instead of the Expected Family Contribution (EFC).

• A lower SAI still indicates a higher level of financial need.

📊 Tax Data Automatically Transferred via Direct Data Exchange (DDX)

• Students and parents must consent to have their tax data transferred directly from the IRS using the FSA’s DDX system.

• Manual entry of tax data is no longer allowed. If consent is not given, the FAFSA cannot be processed.

🧍‍♂️ Contributors Defined More Clearly

• Any person required to provide information (student, parent, spouse) is considered a Contributor.

• Each Contributor must create an FSA ID and provide consent for data exchange.

• If any required Contributor does not participate, the FAFSA remains incomplete.

💰 Pell Grant Eligibility Expanded

• Pell Grant eligibility continues to be tied more closely to family size, income, and the federal poverty level.

• Students from low-income families may automatically qualify for the maximum Pell Grant.

• Pell eligibility also considers parental marital status more accurately, especially in cases of separated or divorced parents.

👪 Parent on FAFSA Clarified for Divorced/Separated Families

• The parent who provides the most financial support (not necessarily who the student lives with more) is now used on the FAFSA.

• This helps clarify situations with joint custody or financial splits.

🧮 Number in College No Longer A Factor

• The number of family members in college no longer affects the Student Aid Index (SAI).

• This has reduced aid eligibility for some families with multiple college students.

Summary of What's New or Different for 2025–2026:

An individual may contact the Bureau for Private Post-secondary Education for review of a complaint.  The Bureau may be contacted at 2535 Capitol Oaks Drive, Suite 400 Sacramento, CA 95833, http://www.bppe.ca.gov, Telephone (916) 431-6924 Fax (916) 263-1897.

Students may request a computer budget increase to expand their financial aid budget if they need to purchase a new computer for the current academic year. Please review the following guidelines before submitting your request:

📅 Deadline for Requests

• Requests must be submitted within the first 30 days of each semester to be considered.

• If submitting after the 30-day window, additional documentation is required (see below).

📝 Required Documentation (Initial Requests)

To be eligible for a budget increase, students must provide:

1. An itemized statement listing the planned computer equipment to be purchased, and/or

2. A receipt that includes:

   • Purchase date

   • Itemized list of equipment

   • Specifications of the computer

Students must first submit all documentation to the Chief Information Officer (CIO) for approval. Once approved, the request can be forwarded to the Financial Aid Office.

⏳ Requests After 30 Days

If the request is made after the 30-day period, the following must also be submitted:

• A written statement from the student's instructor confirming that a new computer is necessary for the student to successfully complete the semester.

📩 Final Submission

In all cases, students must submit a copy of the actual purchase receipt to the Financial Aid Office once the computer has been purchased.

🎓 Federal Pell Grant 2025–2026

🧮 Eligibility Highlights (2025–2026)

• Automatic maximum Pell Grant for students from households at or below 175%–225% of the federal poverty level, depending on family size and structure.

• Based on 2023 income information (from the FAFSA).

• Pell is calculated using the new Student Aid Index (SAI) – not the old EFC.

📌 Important Reminders

• Students must submit a 2025–2026 FAFSA to be considered.

• Pell eligibility is automatically determined — no separate application needed.

• Can be used for tuition, fees, books, and living expenses.