Michigan Tech students will face major changes in financial aid beginning in 2026 under the One Big Beautiful Bill Act, passed last month. The law restructures federal loan repayment options, updates Pell Grant eligibility, and reinstates some FAFSA exemptions.
Starting Jul. 1, 2026, all current repayment plans will be eliminated and replaced with a new standard repayment and income-based plan, called the Repayment Assistance Plan (RAP). Borrowers using the SAVE, PAYE, or ICR plans may continue those options until Jul. 1, 2028, when they must switch to either the standard plan or RAP.
Pell Grant rules are also changing. Foreign income will be included when calculating Adjusted Gross Income (AGI) for eligibility, and students will no longer receive Pell funds if their total non-federal grants and aid exceed the cost of attendance.
The bill also restores FAFSA exemptions for certain assets starting with the 2026 school year. Family-owned small farms, small businesses with fewer than 100 employees, and commercial fishing operations will not need to be reported. These exemptions, with the exception of commercial fishing, were previously in place before the 2024-2025 school year.
The Financial Aid Office declined to comment on the changes, citing a current lack of a department director able to give commentary. The vacancy was due to the previous director being promoted.
Students applying for loans in 2026 should prepare for the new repayment plans, and current borrowers must switch by Jul. 2028. Foreign students may see changes in financial aid eligibility based on family income abroad.
