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How new federal reforms will shape access, accountability, and opportunity for students at UC Irvine and beyond

Sweeping changes to federal student aid are on the horizon. Under the One Big Beautiful Bill (OBBB), the U.S. Department of Education is overhauling how students receive and schools deliver financial assistance. These updates will affect millions of learners, including graduate and professional students pursuing advanced degrees at UC Irvine’s Paul Merage School of Business.

“Financial accessibility is central to our mission,” said Dean Ian O. Williamson. “As the federal landscape evolves, our responsibility is to help students and families understand these changes and continue to open doors to high-value education and career opportunity.”

When the Changes Take Effect

Most provisions will go into effect on July 1, 2026, shaping the 2026–27 academic year. The Department of Education will work with educators and policy leaders through a process called negotiated rulemaking to finalize the new regulations. Two committees, Reimagining and Improving Student Education (RISE) and Accountability in Higher Education and Access through Demand-Driven Workforce Pell (AHEAD), are leading this national conversation on the future of higher-education finance.

What’s Changing

Pell Grants

• Students who receive non-federal grants or scholarships covering their entire cost of attendance will no longer qualify for Pell Grants.
• Students with a Student Aid Index (SAI) greater than twice the maximum Pell Grant will be ineligible.
• A new Workforce Pell Grant will support short-term, career-focused programs lasting 8 to 15 weeks (150 to 600 clock hours).

Federal Loans

• Graduate students: Up to $20,500 per year / $100,000 aggregate total.
• Professional students (law, medicine): Up to $50,000 per year / $200,000 aggregate total.
• Parent PLUS Loans: Up to $20,000 per year / $65,000 total per student.
• The GradPLUS Loan Program will end July 1, 2026, though students already borrowing before that date may continue under a three-year legacy provision.

A New Accountability Framework

To ensure students see tangible value from their degrees, a new “low earnings outcomes” test will measure whether graduates earn more than comparable working adults without college degrees. Programs failing this test two out of three years will lose access to federal Direct Loan eligibility beginning July 1, 2026.

Guiding Students Through Change

The Paul Merage School of Business remains committed to supporting students as the nation transitions to this new model of accountability and affordability. “As these reforms roll out, our focus will remain on preparing leaders who can thrive in a changing economic landscape,” Dean Williamson added. “We will continue to champion pathways that make high-impact education both attainable and transformative.”