Federal Aid Updates
What the One Big Beautiful Bill Act means for your financial aid at Champlain College.
What’s changing
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, makes significant changes to federal student aid — including Pell Grant eligibility, federal loan limits, and loan repayment options. Most provisions took effect July 1, 2026, and apply beginning with the 2026-27 award year.
This page is a starting point for understanding what these changes generally mean for Champlain students and families. Details for each type of financial aid are provided on their respective pages. are provided within. Each is kept up to date as federal guidance evolves.
For Parents of Dependent Students
Parent PLUS Loan Limits Changes
Parent PLUS Loans now have annual and lifetime borrowing limits for new borrowers, with different rules if you already had a Parent PLUS loan disbursed before July 1, 2026. See Federal Loan information for current limits and legacy-borrower rules.
For Current Students
Pell Grant eligibility rules changed with the 2026-27 FAFSA, including a cap based on Student Aid Index (SAI), new treatment of full-cost-of-attendance scholarships, and automatic inclusion of foreign income. See Federal & State Grants for details.
For Graduating or Former Students
Several income-driven repayment plans (including SAVE, PAYE, and ICR) are being phased out by July 1, 2028, in favor of a new tiered standard plan and a new income-driven plan called the Repayment Assistance Plan (RAP). If you’re currently repaying federal loans, stay connected with your loan servicer. They’ll contact you directly as your options change.
What you can do now
- Complete the FAFSA every year — this remains the only way to be considered for need-based aid.
- If you’re a parent planning to use a Parent PLUS loan, talk with a Financial Aid Counselor before the loan is disbursed to understand which rules will apply to you.
- Watch for direct communication from our office and from your loan servicer — we’ll reach out proactively if a change affects your specific aid package.
Frequently Asked Questions
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Will federal financial aid still be available after 2026?
Yes. Pell Grants, federal student loans, and work-study will continue; however, eligibility rules, borrowing limits, and repayment options will change.
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Do I need to do anything differently right now?
For most students, no immediate action is needed. Continue completing your FAFSA as usual. If a change affects your specific eligibility or loan options, our office will reach out to you directly.
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Where can I find the full details and current dollar figures?
Visit the U.S. Department of Education’s Federal Student Aid site for the most current, authoritative information.
Have questions about your own award?
These changes affect different students differently. If you want to understand how any of this applies to your specific financial aid package, contact the Office of Financial Aid at (802) 992-1474, or email us at tradofa@champlain.edu.
More Inside Types of Aid
Scholarships & Grants
Champlain College offers a variety of merit-based scholarships and need-based grants to help students cover the cost of tuition. Scholarships and grants are a form of “gift aid.” Gift Aid generally does not have to be repaid.
Federal & State Grants
When it comes to covering your educational expenses, grants are great. Typically, they do not need to be paid back, which means they're basically free money!
Federal Aid Updates
What the One Big Beautiful Bill Act means for your financial aid at Champlain College.
Loans
There are some fundamental differences between federal loans and loans available from private lenders. Below is a basic overview to help you begin to navigate your loan options.
Federal Work-Study Program
Federal Work-Study Program is an employment program funded by the federal government and Champlain College that allows students to earn money to help with the costs of attending Champlain.