Financial Aid Changes from the One Big Beautiful Bill Act (OB3) are effective July 1, 2026. The information on this page is current as of February 3, 2026, and the website will be updated as additional information becomes available. Please email financialaid@uams.edu if you have questions regarding the One Big Beautiful Bill Act. Information provided on this page comes from the NASFAA Reference Guide. This guide also includes other changes not mentioned below.
Changes with the Greatest Impact to UAMS Students:
Elimination of the Graduate PLUS Loan Program
- The Bill eliminates the Direct Graduate PLUS loan program for graduate and professional students for new student loan borrowers effective July 1, 2026. Use of private student loans may be needed to cover additional costs. Visit the Private Student Loans section of our website for more information.
- Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in the same program of study at the same institution, the borrower can continue to borrow from the Graduate PLUS program for 3 academic years or the remainder of their expected time to credential, whichever is less.
New Parent PLUS Loan Annual and Aggregate Loan Limits
- All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
- Legacy Provision: If the student or parent borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in the same program of study at the same institution, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
Other Important Changes:
Professional Student Definition
- The Department of Education has provided a definition of a professional student. Based on their definition, professional programs at UAMS include Doctor of Medicine (MD) and Doctor of Pharmacy (PharmD). All other programs at UAMS are considered undergraduate or graduate programs.
Federal Loan Limits
- Annual loan amount eligibility will be prorated/reduced if a student attends less than full-time. This applies to all students regardless of program level.
- Undergraduate students – no change to loan limits
- Graduate students – Annual loan limit for the Federal Direct Unsubsidized loan is $20,500 per academic year, this is not a new change. Maximum Graduate level Unsubsidized aggregate limit is $100,000 excluding undergraduate debt. The lifetime limit including all debt is $257,500.
- Professional students – Annual loan limit for the Federal Direct Unsubsidized loan is $50,000. This is more than allowed under legacy provisions. Maximum Professional level Unsubsidized aggerate limit is $200,000 excluding undergraduate debt. The lifetime limit including all debt is $257,500.
Federal Pell Grant
- Students with a Student Aid Index (SAI) that exceeds twice the maximum Pell Grant award ($7,395) are no longer eligible for the Federal Pell Grant.
- Students who receive grants or scholarships from non-federal sources covering their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
- Foreign income is required to be included in the AGI used to calculate Pell Grant eligibility.
Federal Loan Repayment Plans
- Borrowers with new loans made on or after July 1, 2026 can be repaid using only two plans: a new standard repayment plan and the new income-based repayment plan, RAP. If a borrower with new loans made on or after July 1, 2026 does not select a plan, they will be assigned to the new standard repayment plan.
- Standard Repayment Plan – a new standard plan with 4 fixed terms of 10, 15, 20, or 25 years based on the amount borrowed (or outstanding balance if in repayment).
- Repayment Assistance Plan, RAP – a new income-based repayment plan. If married filing separately, spouse’s AGI and number of dependents are not included in the payment calculation. $10 minimum payment. Monthly payment is 1-10% of income based on AGI. $50 off monthly payment (base payment) per dependent. 30-year repayment period. Eliminates negative amortization. No cap on monthly payment, even if it’s higher than the standard repayment plan would be. If a borrower makes an on-time payment that reduces their principal by less than $50, ED will make a payment to the principal, up to the amount paid, minus what was applied to the principal or $50, whichever is less.