One Big Beautiful Bill

The One Big Beautiful Bill introduces federal changes that will impact student financial aid beginning with the 2026–2027 academic year. These updates may affect:

This page outlines how these changes may impact students at the University of Texas Medical Branch (UTMB), including those enrolled in undergraduate, graduate, and professional programs.

One Big Beautiful Bill (OB3)

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Incoming Undergraduate Students
Incoming students and transfer students attending after 7/1/26 will fall completely under the new federal policy.
- Loans: Incoming and transfer students will adhere to the new Federal Direct Loan limits as shown in the table below. For parents wanting to utilize the Parent PLUS Loan.
  
  The table below outlines the loan limits for parent PLUS loans.
*Lifetime limit excludes Parent PLUS
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized and subsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad
  Three-quarter time - 9–11 hours
  Half-time - 6–8 hours
  Less-than-half-time - fewer than 6 hours
  Graduate
  Three-quarter time - 8–8 hours
  Half-time - 5 hours
  Less-than-half-time - fewer than 5 hours
  MD - Students are normally reported as full-time for financial aid purposes as long as they remain actively enrolled in the curriculum. If the length of a student’s active enrollment is reduced, their enrollment status may be adjusted proportionally based on the number of months in which they are enrolled during the academic year.
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
- Pell: Students may be ineligible for a Pell Grant if the full cost of attendance is covered with non-federal grants and scholarships or, if the student’s Student Aid Index (SAI) is greater than twice the maximum Pell Grant.
Current Undergraduate Students
Many students currently enrolled as of Spring and Summer 2026, who have previously borrowed federal direct loans, will fall under the legacy provisions.
- Legacy Provisions: Allows current students or parents to temporarily continue to borrow under the prior federal loan rules and loan limits. Legacy eligibility is determined by federal law and is automatically applied if a student qualifies. It cannot be waived or declined.
- Legacy Provisions Qualifications:
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized and subsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad - 3/4 time (9–11 hours), Half-time (6–8 hours), and Less-than-half-time (fewer than 6 hours).
  Graduate –
  MD -
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
Incoming Professional Students - MD
Incoming 2026 Professional degree students: Attending and receiving aid after 7/1/26 will fall completely under the new policy.
- Loans:
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad - 3/4 time (9–11 hours), Half-time (6–8 hours), and Less-than-half-time (fewer than 6 hours).
  Graduate –
  MD -
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
Current Professional Students - MD
Many students currently enrolled in Spring and Summer 2026, who have previously borrowed federal direct loans, will fall under the legacy provisions.
- Legacy Provisions: Allows for continuing students to temporarily continue to borrow under the prior federal loan rules. This means that students who qualify for legacy provisions may continue using Graduate PLUS loans and the prior federal loan limits. Legacy eligibility is determined by federal law and is automatically applied if a student qualifies. It cannot be waived or declined.
- Legacy Provision Qualifications:
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad - 3/4 time (9–11 hours), Half-time (6–8 hours), and Less-than-half-time (fewer than 6 hours).
  Graduate –
  MD -
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
Incoming Graduate Students
Incoming 2026 graduate degree students beginning their program after 7/1/26 will fall completely under the new policy.
- Loans:
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad - 3/4 time (9–11 hours), Half-time (6–8 hours), and Less-than-half-time (fewer than 6 hours).
  Graduate –
  MD -
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
Current Graduate Students
Many students currently enrolled in Spring and Summer 2026, who have previously borrowed Federal Direct loans, will fall under the legacy provisions.
- Legacy Provisions: Allows for continuing students to temporarily continue to borrow under the prior federal loan rules. This means that students who qualify for legacy provisions may continue using Graduate PLUS loans and the prior federal loan limits. Legacy eligibility is determined by federal law and is automatically applied if a student qualifies. It cannot be waived or declined.
- Legacy Provision Qualifications:
- Schedule of Reduction for Loans: Beginning the 2026-2027 academic year, all unsubsidized annual loan amounts will be reduced based on enrollment status
  Enrollment Status
  If you’re enrolled less than full time for an academic year, your annual loan limits shown in the chart (or the lower limits set by your institution) are adjusted downward proportionally based on your level of enrollment.
  Your institution will notify you of the actual loan amount you’re eligible to receive based on your academic level, dependency status, and other factors such as
  your institution’s loan limit for your program of study;
  your cost of attendance;
  your enrollment status in your specific program;
  your available resources to help pay for postsecondary education, based on the information reported on your Free Application for Federal Student Aid (FAFSA®) form;
  other financial aid you receive; and
  your remaining eligibility under the annual, aggregate, or lifetime maximum loan limits.
  The amount of Direct Subsidized Loans, Direct Unsubsidized Loans, or Direct PLUS Loans you’re eligible to receive can increase or decrease based on changes in your circumstances. Your institution will notify you of any changes in your eligibility.
  for those less than full time.
  For federal student aid, full-time status for undergraduates is typically defined as 12 or more credit hours per semester. While this is the standard definition, individual school financial aid offices may set slightly different requirements, particularly for non-term programs. Being full-time ensures maximum eligibility for grants like the Pell Grant, which are prorated for less-than-full-time status.
  Key Details on Full-Time Federal Aid Status:
  Credit Hours: Generally 12+ hours for undergraduates; 9+ for graduate students.
  Pell Grant: Requires 12+ hours for 100% of the calculated award.
  Other Enrollment Levels:
  Undergrad - 3/4 time (9–11 hours), Half-time (6–8 hours), and Less-than-half-time (fewer than 6 hours).
  Graduate –
  MD -
  Impact on Aid: You can still receive federal aid if you are not full-time, but it may be reduced. However, you must be enrolled at least half-time (6+ hours) to qualify for federal student loans as an undergraduate student and 5 hours as a graduate student. If you are enrolled Less than Half-Time, you are not eligible for federal aid. Flexibility: If your program defines full-time differently (e.g., in a, accelerated program, grad students or MD), that program policy dictates your status
Frequently Asked Questions - FAQ

Q: Who is most affected by these changes?
A: Students who begin their programs & receive their financial aid disbursement after July 1, 2026, will be fully subject to the new federal regulations. Some continuing students may qualify for temporary legacy provisions.
Q: Will my existing loans be affected?
A: No. Loans already disbursed will not change; however, future borrowing may be subject to new limits and eligibility requirements outlined in OB3.
Q: What happens if I change programs or take a Leave of Absence?
A: Changing programs or an LOA longer than 180 days may impact your eligibility for legacy provisions and could result in transitioning to the new federal aid rules.
Q: How does part-time enrollment affect aid?
A: Students enrolled less than full-time may receive reduced financial aid, depending on federal guidelines and program structure based on the new OB3 pro-rated financial aid provisions.

Our Commitment to UTMB Students:
We recognize that financial considerations are an important part of your educational journey, and we are committed to supporting you with transparency, responsible guidance, and personalized service.

We encourage you to take advantage of the financial Aid resources available to you:

Please explore these resources and contact the Financial Aid Office sfinaid@utmb.edu at the University of Texas Medical Branch (UTMB) if you have questions or would like individualized support.

For additional information, refer to our One Big Beautiful Bill FAQs or Federal Student Aid resources.

Rodriguez Kristyn

Kristyn Rodriguez
Enrollment Services Specialist
Financial Aid
krprodri@utmb.edu
409-747-8561

Holmes Yvonne

Yvonne Holmes
Sr. Enrollment Services Specialist
Federal Work Study
Financial Aid
ydholmes@utmb.edu
409-266-0157

Salas Erica

Erica Salas
Assistant Director
Financial Aid
emsalas@utmb.edu
409-772-2479

Hale Anne

Anne Hale
Director
Student Financial Services
International Student PDSO
aehale@utmb.edu
409-772-9796

Federal Financial Aid Updates: One Big Beautiful Bill (OB3)

Effective Beginning Academic Year 2026–2027