Prepare, Don’t Panic: 5 Tips to Handle the Coming Financial Aid Shake-Up

With the passage of the One Big Beautiful Bill Act, sweeping changes to federal financial aid are officially on the books beginning next year, and they’re as dramatic as the name suggests. New Pell Grant eligibility rules, tougher accountability standards, and dramatic loan shifts all add up to access challenges.

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But there is good news: it could have been worse and there is time to prepare. The changes won’t take effect until the 2026–27 academic year. Here are five practical tips to get ahead of potential disruptions and stay student-centered in the process:

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1. Audit Your Pell Population Now

Some students who previously qualified for Pell may lose access under the new rules, especially high-achieving students with full ride scholarships or student-athletes with aid packages exceeding cost of attendance. Use institutional data to identify at-risk groups and explore strategies to support them.

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💡 Tip: Flag students who receive outside scholarships covering full cost of attendance and model potential Pell eligibility loss to anticipate impact.

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2. Create or Revisit a Private Lender List

With the elimination of Graduate PLUS and tighter borrowing caps on Parent PLUS, families may need to explore the private loan market. Many credit-worthy families will likely turn to the private loan market. Institutions can help by proactively maintaining a vetted, transparent lender list so students and their families aren't left scrambling.

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💡 Tip: Establish a review process for including lenders that prioritize fair terms, transparency, and support the audiences that may be left out of future Direct Loan lending.

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3. Rethink Your Academic Portfolio

Short-term workforce programs can now qualify for Pell, an opportunity worth exploring. At the same time, programs that do not lead to measurable earnings gains could lose access to federal loans under new outcomes-based accountability rules.

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💡 Tip: Benchmark your programs’ graduate earnings against state or national baselines to identify risk areas.

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4. Reimagine Financial Aid for Nontraditional and Short-Term Programs

If you already offer short-term credential programs, now is the time to explore their eligibility under the new rules. Are they for credit? Offered in 8-15 weeks? You may also want to rethink packaging strategies for adult learners who will soon be Pell-eligible.

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💡 Tip: Review eligibility criteria for short-term programs and begin conversations about aid strategies for those you identify as eligible.

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5. Communicate, Early and Often

Some students will be surprised, and possibly confused, by how these changes affect their aid. Don’t wait until next year. Start building communications plans now to explain what’s changing and how you plan to support students.

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💡 Tip: Consider FAQs and info sessions targeted at graduate students and families who rely on PLUS loans.

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Buckle Up, but Don’t Go It Alone

Yes, it’s going to be a bumpy ride. The Department of Education now faces a compressed implementation timeline, which is made worse by a reduced workforce. But institutions can buffer the impact by planning now, being transparent with students, and seeking partners that can help.

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