Starting on July 1, 2026, some federal financial aid rules will change. We know that navigating financial aid can feel overwhelming, and hearing about new changes can be stressful, so we want to walk through what these changes mean in a clear, supportive way.
Here are the main takeaways:
The most important thing to know: you have time to plan, and Southern Nazarene University (SNU) is here to help. Our Financial Services team is here to answer your questions, explain your options, and help you come up with a plan that fits your goals and your life.
In July 2025, the One Big Beautiful Bill (OB3) was passed. Parts of this new law update federal student loan and grant rules, effective July 1, 2026, aligning with the 2026-2027 academic year.
Because undergraduate students (students pursuing a bachelor’s degree) use financial aid in different ways, we’ll break down the information that applies to:
Before we dive into the details, it may be helpful to understand a few common financial aid terms. Many of these phrases come up often in financial aid conversations or when working with financial aid forms, and we know they can be confusing at first. Think of this as a simple guide to help you feel more confident as you read through the changes below.
A student who uses a parent’s financial information on the Free Application for Federal Student Aid (FAFSA). Parents may be eligible to borrow Parent PLUS Loans.
A student who does not use parent information on the FAFSA and borrows loans in their own name.
A federal loan that parents can use to help pay for a dependent student’s education.
Taking enough credit hours in a term to be considered full-time. For SNU undergraduate students, full-time is defined as 12 hours per semester.
The maximum total amount that can be borrowed over time, not just in one year.
If you began borrowing before a rule change and meet certain conditions, you may continue under the old rules.
This may feel like a lot of information to take in, especially if you’re planning for many years of college. If you feel uncertain about how these changes might affect you or your family, please know you’re not alone, and you don’t have to figure it all out by yourself.
SNU’s Financial Services team is here to walk you through your financial aid options step by step. You can meet with a counselor in-person on campus or schedule a virtual appointment to talk through your unique situation, ask questions, and create a plan that works for you.
With that in mind, here are the key updates that apply to traditional undergraduate students. Traditional undergraduate students are often dependent students–students whose parents help with financial aid through Parent PLUS Programs.
Beginning July 1, 2026:
Some families currently borrow more than $20,000 per year, which means future planning may be needed.
Already using a Parent PLUS Loan?
You may continue under current rules if:
It’s important to note that withdrawing from a term ends grandfathering.
Independent students are not affected by changes to the Parent PLUS Loan.
Starting in the 2026-2027 academic year:
Two Pell Grant provisions were added, but after reviewing the last three years, SNU found that no current students would have been affected. These changes are expected to affect very few students.
We know that adult students often balance school with full-time work, family responsibilities, and other financial commitments. Changes in financial aid can feel especially concerning when you’re already managing a full schedule and budget.
You are not alone in this process. SNU’s Financial Services counselors are experienced in working with adult students and can walk through the entire financial aid process with you, making a financial plan that starts day one and runs through graduation. They are happy to explain options, answer questions, and help you plan in a way that will work for your goals and busy lifestyle.
Here are the updates that apply to students in SNU’s adult undergraduate programs.
Independent adult students are not affected by Parent PLUS Loan Changes.
Your FAFSA determines this. Your Financial Services Coordinator can help explain.
No. These changes begin July 1, 2026.
That’s exactly why SNU is sharing this information early. Financial services can help you plan ahead so that you will not experience a gap in your financial aid.
Financial aid rules may be changing, but SNU’s commitment to you has not. We’re here to help you fully understand your options and plan confidently for the future.
If you have any questions or simply want to walk through what these changes could mean for you, our Financial Services team is ready to help you. You can schedule an appointment on campus or online to review your financial aid plan and explore next steps.
If you’re considering graduate school in the future, be sure to read our companion post on financial aid changes for graduate students.