One Big Beautiful Bill Act (OBBBA)
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, introducing significant changes to federal student aid programs, most of which become effective 1 July 2026. Detailed below are changes, however, the information below is subject to change based on any further updates from the US Department of Education Federal Student Aid website.
Continuing students
Students who were actively enrolled and received federal loans during the 2025–26 academic year may continue to borrow under the previous regulations, provided they remain continuously enrolled and up to 3 years or their end date, whichever is sooner. Any break in study, including an intermission, will make them ineligible.
The statute also does not provide for extensions beyond that period, therefore if a student receives an institutional extension beyond their calculated expected time window, it is likely that they would not retain grandfathered borrowing eligibility during the extension period and would instead be subject to the new loan limits.
New students
- Postgraduate students may borrow up to $20,500 annually through Stafford loans. The Graduate PLUS Loan is being eliminated.
- Lifetime limits are set to $100,000 for Postgraduate Students. Before it was $138,500 and students who repaid part of their balance could borrow again up to that limit. Under the new rules, this is no longer permitted.
- Part-Time Enrolment Restrictions for students enrolled in less than full-time study will have their Cost of Attendance (COA) prorated to reflect their course load. Consequently, these students will experience a reduction in the maximum loan amounts available to them.
- Parent PLUS Loans for Undergraduate students will be capped at $20,000 per annum, with a $65,000 lifetime limit per dependent child.
Until the new regulations have been confirmed, we will not send Cost of Attendance (COA) information. We will provide updates as soon as we receive confirmed guidance. Please continue to complete your 2026/27 FAFSA applications as usual in preparation.
Staying informed
For the most up‑to‑date information, we recommend checking studentaid.gov, where official updates will be published as they become available.
Direct Loans are available to students studying at our Canterbury and Medway campuses in the United Kingdom.
Please note that Foreign institutions are not eligible to administer PELL grants or Work-Study funds.
Direct Loan eligibility criteria:
The University is authorised to process US Direct loans for students who are:
- Citizens or permanent residents of the United States (US) and who have a valid US social security number.
- Studying for Bachelor's degrees, First Professional degrees, Master's degrees and Doctoral degrees.
- Studying at the University of Kent’s Canterbury and Medway campuses .
However, there are some exceptions. The following students are not eligible to borrow US Direct loans:
- Students whose programme includes study or research for any length of time in the United States. However, there is a narrow exception for independent research carried out by PhD students – please email foreignloans@kent.ac.uk for details.
- Students whose programme includes study or research for any length of time at the University of Kent’s Paris Centre for Arts and Culture.
- Students who are registered on the International Foundation Programme.
- Students who are registered on an External / Distance Learning programme of study.
- Students whose programs include study abroad or exchange years.
- The University of Kent does not provide Internships/externships and therefore are not permissible for Title IV.
- Students who are studying for non-degree programs.
These students may be eligible to borrow a US Private loan.
Direct Loan interest & Loan fees
The US Department of Education charges interest and loan fees for all Direct Loans.
- You can find the interest charges for Subsidised, Unsubsidised, and PLUS loans.
- In addition to the interest, all Direct Loans have loan fees. Find out the loan fees for Subsidised, Unsubsidised and PLUS loans.
- Your Anticipated Disbursement Notifications will list the net loan amounts (the amount after loan fees are deducted); this is the amount you will receive.
- You are responsible for repaying the entire borrowed amount, including interest and loan fees.
How much can I borrow?
There is a limit on the total amount of Subsidized and Unsubsidized Loans a student can receive annually and over the lifetime of their study: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
The University can authorise you to borrow up to the total of your cost of attendance.
Consolidation
If you have multiple Federal education loans, you can consolidate them into a single Direct Consolidation Loan. This may simplify repayment if you are currently making separate loan payments to different loan holders, as you will only have one monthly payment to make.
However, there may be trade-offs, so you will want to learn about the advantages and possible disadvantages of consolidation before you consolidate. To learn more, visit: https://studentaid.ed.gov/sa/repay-loans/consolidation
Additional information
For additional information about US Direct Loans:
- Visit The US Department of Education's Direct Loan Program website;
- Or contact us at foreignloans@kent.ac.uk, The Foreign Loans Unit, Student Financial Services, The Registry, University of Kent, Canterbury, Kent CT2 7NZ, United Kingdom.