Let’s be real: financial aid just got a major makeover. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, and it’s shaking up the way students and families pay for college. Whether you’re gearing up for FAFSA season or just trying to make sense of student loans, here’s what you need to know about the new rules and how they could shape your financial future.
For years, filling out the FAFSA® form felt like a guessing game. Families who owned small businesses or farms often saw their assets counted against them, making it harder to qualify for need-based aid.
One Big Beautiful Bill Act changes that. Starting with the 2026–27 FAFSA, assets from small businesses, family farms, and commercial fishing operations are excluded from the calculation. Translation: FAFSA now does a better job reflecting your real financial need. More students may qualify for aid, especially those whose family income isn’t as straightforward as a W-2.
If you’re thinking about grad school, law, or med school, pay attention. OBBBA sets new borrowing caps on federal student loans:
The Grad PLUS loan program is ending in 2026, so students may need to explore private loans or scholarships to fill the gap. For families who relied on Parent PLUS loans to bridge tuition costs, these new caps mean planning ahead is more important than ever.
OBBBA simplifies FASFA repayment options, consolidating them into just two plans: a standard plan with fixed payments, and a Repayment Assistance Plan (RAP) based on your income. While this streamlining aims to reduce confusion, it also means fewer flexible options. Some plans, like the Biden-era SAVE plan, are ending, and loan forgiveness will be taxable after December 31, 2025. If you’re graduating soon, it’s smart to brush up on these new rules and see which plan works best for you.
Not all the news is tough. One Big Beautiful Bill Act expands Pell Grant eligibility, introducing “Workforce Pell” grants for short-term job training programs. This means students pursuing workforce credentials or certificate programs between 8 and 15 weeks can now get Pell funding; a win for anyone looking to up-skill quickly and get into the job market.
The bottom line: the One Big Beautiful Bill Act is changing the way we think about FASFA and financial aid. There are new limits, new opportunities, and new challenges. As the job market shifts and AI reshapes entry-level work, having access to smarter financial aid is more important than ever.
At Zogo, we’re here to help you make sense of these changes. Our bite-sized lessons break down the new rules, give you real-world strategies for applying and borrowing, and help you build the skills to take control of your financial future—even when the world feels out of control.
Ready to learn more? Explore our app for up-to-date resources, guides, and tips. Let’s take the driver’s seat together.
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