Federal Student Aid Changes

The One Big Beautiful Bill Act (signed into law July 4, 2025) introduced some of the most significant updates to federal student aid in years. While undergraduate loan programs remain unchanged, several important shifts will affect students and families:

Parent PLUS Loans now have new annual and lifetime limits, reducing the amount parents can borrow.
Pell Grants received additional funding, but new rules may affect eligibility based on how a student's costs are covered.
Graduate Student Borrowing will change dramatically: starting July 1, 2026, the Federal Direct Graduate PLUS Loan program will be discontinued for new borrowers, leaving graduate students with only capped Unsubsidized Stafford Loans.
Loan Repayment Plans have been updated, and loan eligibility will be tied more closely to a student's course load (how many classes they take).

These changes are intended to reduce overall borrowing and shift federal support, but they may also create new challenges for families who rely on federal loans to cover educational expenses.

The bill is a sweeping federal package that significantly alters how students and families access financial aid. Beyond the bill itself, recent congressional actions, budget negotiations, and Department of Education (DOE) processes add further complexity.

comprehensive overview of changes and implications

For answers to common questions, please visit USF's Federal Student Aid Changes FAQ.

OFFICE OF SPONSORED RESEARCH

The federal government has tightened rules on TRIO and MSI programs following a January executive order targeting DEI-related grants. New DOE guidance requires institutions to show compliance with stricter standards of "merit, fairness, and excellence."

The university has received a Non-Continuation Notice for its TRIO Talent Search Program, resulting in a loss of about $300,000. USF's three TRIO Upward Bound grants should remain stable for FY26, pending federal budget approval. However, DOE is expected to require stricter budgets and more detailed reporting. TRIO's additional years of funding, totalling $2.7 million over three years, are uncertain given recent government measures.

On September 10, 2025, the DOE announced the discontinuation of MSI funding, which impacts USF's AANAPISI grant (Title III, Part A). Federal regulations (34 C.F.R. § 75.250(a)) allows grantees that were operating a multiyear project that was not in its final budget period to apply for a one-year no-cost extension on all discontinued awards through September 30, 2026, so that grantees may finalize activities within the approved scope of the project and engage in an orderly closeout of program activities.

USF is working with our strong national AANAPISI network and looking into the possibility of seeking a one-year no-cost extension in accordance with 34 C.F.R. § 75.250(a). For questions or further information, please contact Camille Coley (ccoley@usfca.edu).

INTERNATIONAL STUDENTS, SCHOLARS, AND STAFF

The Department of Homeland Security (DHS) and US Immigration and Customs Enforcement (USCIS) have proposed a rule to end "duration of status" (D/S) for F and J visa holders that will limit their length of stay in the U.S. This draft rule also limits student visa holders from making program changes, such as changing degree levels, transferring between schools, and applying for practical training without filing additional paperwork with the government.

This rule will cause uncertainty for students as they plan their studies in the U.S., requiring students to file long and more expensive applications with the government that may take time to process. ISSS is evaluating the impact of this proposed rule and sharing information with students ensuring they will be kept up to date.

The comment period for this rule is open until September 29. USF is working with our peer institutions in the AJCU to consider submitting comments on the proposed rule to end Duration of Status.

For further information, please check the NAFSA's resource page, the ISSS website or contact Marcella Pitcher DeProto (mjdeproto@usfca.edu).

H-1B Visa Fee Update: The U.S. government has announced a new $100,000 fee for H-1B petitions filed on or after September 21, 2025. This fee applies only to new petitions and does not affect currently pending or approved cases. We are carefully monitoring the possibility of litigation challenging this proclamation and the potential implications for future faculty and staff hires.

For additional information, please contact David Philpott (philpottd@usfca.edu) if you have any questions regarding Federal Updates, and Diane Nelson (dlnelson3@usfca.edu) for Human Resource concerns.

OFFICE OF INSTITUTIONAL RESEARCH

The DOE has proposed a new IPEDS "Admissions and Consumer Transparency Supplement" (ACTS) targeted for 2025 to 2026 that would require institutions to report highly disaggregated admissions, aid, and outcome metrics (e.g., race and sex pairs; test score and GPA quintiles; income; Pell status; admission type) and to include five prior years of data, with similar elements for graduate programs disaggregated by broad CIP fields. Professional associations, including the Association of Institutional Research (AIR), the American Association of Collegiate Registrars and Admissions Officers (AACRAO), the American Council on Education (ACE), the Association of Public and Land Grant Universities (APLU), and the National Association of Independent Colleges and Universities (NAICU), caution that the proposal could impose substantial reporting burdens on IR and registrar offices and that many technical details (definitions, feasibility, and systems work) remain unresolved. While a final itemized questionnaire has not been released, analyses of the Federal Register proposal and AIR's summary suggest more than one hundred new questions and a thousand additional data fields, representing a significant increase in compliance and reporting burden across multiple departments.

For further information, please check the Association of Institutional Research's website or contact Nathan Cain, oira@usfca.edu.

DIVERSITY, EQUITY AND INCLUSION

On July 29, 2025, U.S. Attorney General Pam Bondi issued a memo, "Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination," which provided guidance and non-binding suggestions to help entities comply with federal antidiscrimination laws, avoid legal pitfalls, and minimize the risk of violations.

We continue to monitor executive orders with respect to DEI as the entire USF community works to advance our Jesuit Catholic mission and values, which affirm the equal dignity of every human being. Academic and scholarly work and activities should continue in accordance with our mission and our defining Jesuit Catholic values.

POTENTIAL FEDERAL GOVERNMENT SHUTDOWN

The Task Force is monitoring the news about the potential government shutdown, as we get closer to the September 30 deadline. We will monitor developments and provide updates as needed.