In the Media
Key Takeaways:
- OBBB changes federal aid rules, adding Parent PLUS caps, adjusting Pell eligibility, and creating gainful employment requirements.
- The broadest impact may be emotional, leaving families feeling more uncertain about the benefit of a college education.
- Many families already rule out colleges based on perceived affordability.
- Early, clear communication is critical to prevent confusion and elimination.
- Colleges that reduce financial uncertainty can better build trust and improve enrollment outcomes.
Higher education has no shortage of uncertainty right now.
Questions about the value of a college degree continue to make headlines. Artificial intelligence is reshaping conversations about careers and the future of work. And now institutions are preparing for significant changes to federal student aid under the One Big Beautiful Bill (OBBB).
Families are paying attention.
So are enrollment leaders. In conversations over the past several weeks with leaders across enrollment, admissions, and financial aid, one topic keeps coming up: How will OBBB affect enrollment?
More specifically:
- What are the biggest changes for undergraduate students?
- How might those changes affect enrollment behavior?
- What should colleges do now?
We’ll explore each question below, but here’s the short answer:
OBBB will make paying for college more difficult for some families. Additionally, it is likely to increase the perception that college is becoming financially riskier – even among families who aren’t directly affected.
Colleges that address affordability and borrowing concerns early will be better positioned to get students interested, keep them engaged, and convert admits into enrolled students.
What Changed?
OBBB includes several provisions that affect undergraduate students and their families.
Among the most significant:
- Parent PLUS loans are now capped for new borrowers as of July 1, 2026, at $20,000 per year and $65,000 per student over a lifetime. Current students may be grandfathered in under old rules.
- Pell Grant eligibility is changing. Some students who previously qualified for partial Pell Grants may receive less – or no – Pell funding under the new rules, while Pell eligibility is expanding to certain short-term workforce programs.
- Programs that fail the new Gainful Employment for All rule could lose access to federal student loans. Each year, programs will be evaluated based on whether degree-completers earn more than high school graduates in the institution’s home state.
- Repayment options are being consolidated. Most new federal student loan borrowers will choose between a standard repayment plan and the new Repayment Assistance Plan (RAP). Existing borrowers may continue under different repayment rules depending on when they first borrowed their loans.
- Part-time students may be eligible to borrow less than full-time students. As of July 1, 2026, annual federal loan limits for new borrowers enrolled less than full time will generally be prorated based on enrollment status. OBBB also establishes a new $257,500 lifetime federal student loan limit. Undergraduate borrowing counts toward that limit, while Parent PLUS loans do not
It is also worth noting what didn’t change. Federal Direct Loan limits for full-time undergraduate students remain the same. Earlier versions of the legislation proposed reducing annual borrowing limits, but those provisions were removed before the bill became law.
Not every family will be affected by these changes. Many students will still be able to borrow what they need through federal student loans.
Most families, however, won’t read the legislation. They’ll learn about these changes through headlines and social media. That makes confusion – and anxiety – almost inevitable.
The Biggest Enrollment Impact May Be Emotional
By the time families reach your admissions office, all those headlines and posts will have merged into a broader impression that paying for college is becoming more difficult and that college paying off is less certain than it used to be.
Uncertainty always changes decision-making. This is no different.
Research consistently shows that concerns about student debt already influence college choice. According to Encoura, nearly two-thirds of students have ruled out a college because of the amount they expected to borrow. Many make that decision before they fully understand financial aid or compare net price.
OBBB has the potential to reinforce, and magnify, those concerns.
As families hear about borrowing limits, repayment changes, or reduced federal support, many won’t stop to evaluate which changes apply to them.
Instead, some families will narrow their college lists earlier, eliminating institutions they assume are unaffordable. Others may abandon schools later in the cycle, choosing what feels like a safer option, even if it isn’t the best academic or personal fit.
For enrollment leaders, the greatest risk is that your team never gets the opportunity to make the case for your institution.
What Should Colleges Do?
The worst response is to wait until financial aid offers go out. By then, many families will have already crossed colleges off their list based on assumptions about cost and borrowing.
Start communicating now. Explain what’s changing in plain language. Equip admissions counselors with clear talking points, publish helpful resources, and consider hosting virtual or in-person information sessions. The goal isn’t to make every family an expert on federal financial aid. It’s to reduce confusion before uncertainty turns into elimination.
Just as important, look for ways to reduce uncertainty. Many families aren’t just worried about how they’ll pay for college. They’re worried about the burden of student loan debt.
Loan Repayment Assistance Programs (LRAPs) address that concern directly. If graduates earn a modest income, the program helps repay their student loans. That reassurance gives families confidence knowing there’s a financial safety net in place while graduates establish their careers, regardless of the path they choose.
That confidence may become even more valuable for families who must rely more heavily on private loans. Ultimately, private loans may become more common, either because of the new limits to Parent PLUS loans or, down the road, because a program has lost access to federal student loans under the Gainful Employment for All rule.
Because LRAPs can cover federal, Parent PLUS, and private student loans certified through the financial aid office, they provide a financial safety net regardless of how a family ultimately finances college.
Looking Ahead
OBBB will change how some families pay for college. But its biggest impact may be how families feel about college.
In an environment where uncertainty is already shaping enrollment decisions, colleges can’t afford to assume families will wait for the facts. Many will make decisions based on incomplete information.
The institutions that communicate early, explain clearly, and reduce financial uncertainty will be better positioned to earn students’ trust. Families still believe in the opportunities higher education can provide, but more than ever, they need reassurance that the investment is worth making.
