The One Big Beautiful Bill Act (H.R.1) was signed into law by President Trump on July 4, 2025. For students, families, and institutions like Western, this bill is significant because it changes some rules related to the federal aid (Title IV) programs, like Direct Student Loans.
These changes went into effect July 1, 2026, with the 2026-27 Free Application for Federal Student. This means the changes will first go into effect at Western in Fall 2026.
Beginning Fall 2026, federal student loans will be prorated based on enrollment. Prior to this new regulation, any student who accepted federal student loans and was enrolled in at least six (6) credit hours would receive their full loan eligibility for the term.
The new federal student loan proration regulations were created to better align the amount students can borrow with their actual enrollment intensity.
The intent behind these changes is to promote more accurate borrowing, reduce the risk of over-borrowing, and ensure that federal aid is distributed more equitably based on a student’s actual educational costs and enrollment level, rather than assuming full-time, full-year attendance.
Only full time (12+ credit hours) students will receive full loan eligibility for the term.
