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Upcoming Federal Changes Impacting Financial Aid

On July 4, 2025, legislation (One Big Beautiful Bill / H.R. 1 – An act to provide reconciliation) was signed into law. This act has implications for the administration of federally funded student aid beginning July 1, 2026.

Please note that final rules associated with the regulatory interpretation of the reconciliation bill have not yet been published. The information provided is based on the current interpretation of the law and may be subject to change. As more information becomes available from the U.S. Department of Education, Florida Gateway College will continue to monitor developments and provide updates accordingly.

Unless otherwise stated, the effective date for changes below is July 1, 2026.

Free Application for Federal Student Aid (FAFSA) Changes

  • Exemptions of family farm and family-owned small business assets from the Student Aid Index (SAI) calculation are reinstated.
  • Expansion of asset exemptions to include family-owned commercial fisheries.
  • Effective April 27, 2026 - The U.S. Department of Education has increased efforts to prevent financial aid fraud. As a result, some students may be selected for additional identity verification or asked to provide documentation before financial aid can be awarded or disbursed. If additional information is requested, students should respond as quickly as possible to avoid delays in processing, awarding, or receiving financial aid funds.

Pell Grant Changes

  • Foreign income must be included in the Adjusted Gross Income used to calculate Pell Grant eligibility.
  • Students who receive grants or scholarships from non-federal sources covering their full Cost of Attendance (COA) are ineligible for a Pell Grant, even if otherwise eligible.
  • Prevents students from receiving Pell Grants if their SAI exceeds twice the maximum Pell Grant award.

Federal Student Loan Changes (Undergraduate Students)

  • Effective for the 2026–2027 aid year, loan amounts for students enrolled less than full-time in any semester may be reduced proportionally.
  • Parent PLUS Loan changes include annual and aggregate borrowing limits per dependent student.
  • Legacy provisions may apply for borrowers with loans prior to July 1, 2026, allowing limited continuation under prior rules for a defined period.

Loan Repayment Changes

Loan repayment options will vary for borrowers depending on whether they have new loans made on or after July 1, 2026. Available repayment plans may include standard, graduated, income-driven, and other eligible plans based on borrower status. The chart below outlines available repayment options:

  Student loan borrowers with no new loans on or after July 1, 2026 Student loan borrowers with new loans on or after
July 1, 2026		 Parent PLUS borrowers with no new loans on or after July 1, 2026 Parent PLUS borrowers with new loans on or after
July 1, 2026
Repayment plans Current 10‑year standard, graduated, extended, ICR, PAYE, IBR, Repayment Assistance Plan (RAP) (after July 1, 2026) Tiered standard, Repayment Assistance Plan (RAP) Current 10‑year standard, graduated, extended, ICR* Tiered standard
Impacts of July 1, 2028 changes If enrolled in ICR or PAYE, borrower must switch to an eligible plan before July 1, 2028, or will be moved into RAP N/A If enrolled in ICR (meaning PLUS loans were consolidated into a Direct Consolidation Loan prior to July 1, 2026), borrower must switch into an eligible plan before July 1, 2028, or will be moved into IBR N/A
Eligible for PSLF? Yes, if enrolled in current 10‑year standard, ICR, PAYE, IBR, or RAP Yes, if enrolled in RAP Yes, if enrolled in current 10‑year standard, ICR*, or IBR** No Eligible Plan
Eligible for income‑driven repayment plan loan forgiveness (time‑based forgiveness)? Yes, if enrolled in ICR, PAYE, IBR, or RAP Yes, if enrolled in RAP Yes, if enrolled in ICR* or IBR** No

For more information, please visit their website at https://studentaid.gov/manage-loans/repayment.

Economic Hardship and Unemployment Deferments

  • Effective July 1, 2027, economic hardship and unemployment deferments will not be available for new borrowers.
  • Borrowers with loans made on or before July 1, 2027, may still use these deferments under current rules until those loans are paid in full.
  • Loans made on or after July 1, 2027, may be eligible for forbearance for up to nine months in any two-year period.

For additional information on temporary relief options, visit: Federal Student Aid – Temporary Relief Options

Additional Information

All information is tentative pending final regulatory guidance from the U.S. Department of Education.

For further information or updates, please refer to the Federal Student Aid website: Federal Student Aid – Big Updates

Contact Us

Email: financial_aid@fgc.edu
Phone: (386)-754-4296
Fax: (386) 754-4529

Mailing Address:
Florida Gateway College
Office of Financial Aid
149 SE College Place
Lake City, FL 32025

Office Hours:
Fall/Spring: Monday–Thursday, 8 a.m. – 4:30 p.m. Fridays 9 a.m. – 4:30 p.m.
Summer: Monday–Thursday, 7:30 a.m. – 5 p.m. Closed on Fridays

FGC FAFSA School Code: 001501