Austin Community College District (ACC) students, faculty, and staff have asked how the recent federal reconciliation bill—known as One Big Beautiful Bill Act—will impact our ACC community. 

The College’s Financial Aid Office receives guidance from the National Association of Student Financial Aid Administrators (NASFAA), which developed a helpful resource outlining the recent federal student aid changes. You may view a comprehensive summary here. Below are key highlights to understand what’s changing and what’s staying the same as it relates to federal financial aid.

Federal Pell Grants

The primary update is that Pell Grant enrollment expectations are not changing. Students taking 12 credits per semester will still qualify as full-time, and part-time students (those taking fewer than 12 credits) remain eligible for reduced Pell Grant amounts under current rules.

The second provision—going into effect this fall 2025—is that there will be a boost in Pell Grant funding to address a projected shortfall. The program received a one-time $10 billion funding increase to prevent disruptions through fiscal year 2026.

Approximately 9,500 ACC students received a Pell Grant last academic year, representing a significant portion of our student body. Additional changes to the Pell Grant with a start date of July 1, 2026, are listed below:

New Workforce Pell Grant for Short-Term Training:

  • The legislation also established a new “Workforce Pell Grant,” set to take effect on July 1, 2026. These grants will be available for short-term training programs aligned with state workforce needs, and must be approved by the governor. Workforce Pell is entirely separate from the traditional Pell Grant and will count toward a student’s lifetime Pell usage.

Financial Aid Eligibility Calculation:

  • Starting in 2026-27, students who receive scholarships or grants that fully cover their cost of attendance will not be eligible for Pell Grants. While this change may impact how institutional and state aid is packaged, we do not expect it to significantly impact ACC students. ACC’s cost of attendance ranges from about $18,000 to $35,000 per year (includes certain living expenses), depending on factors like residency status. Details will be shared as information is provided.

Federal Student Loans

Last academic year, approximately 5,300 students received subsidized loans and 4,800 received unsubsidized loans at ACC. Changes in federal loan programs that will impact future borrowing and repayment options go into effect July 1, 2026, and are listed below:

New Rules for Loan Amounts: 

  • Starting in 2026-27, loan amounts will be calculated differently in two ways. First, students’ loan amounts will be adjusted based on their credit hours, similar to how Pell Grants are currently calculated. For example, a student taking 6 credit hours will be offered a lower loan amount than a student taking 9 credit hours.
  • Second, colleges will be able to set lower loan limits for entire academic programs, though they cannot adjust limits for individual students within those programs. Guidance has not been released on how this would be implemented, and ACC has not made any decisions about adjusting program-level limits. We will continue to monitor federal guidance.

Parent PLUS Loan (also known as Direct PLUS loans):

  • Beginning July 1, 2026, parent PLUS loans have new borrowing caps: $20,000 annually and $65,000 total per dependent student. Each academic year, about 50 ACC students utilize parent PLUS loans.  

Loan Repayment:

  • The Public Service Loan Forgiveness program continues as is, and most current borrowers can stay on their existing repayment plans. Some existing borrowers will need to make changes: those currently enrolled in Income-Contingent Repayment (ICR), Pay as You Earn (PAYE), or Saving on Valuable Education (SAVE) plans must transition to a different repayment plan by July 1, 2028. 

Students who take out loans after July 1, 2026, will enter a new repayment landscape with only two options: a revised standard plan (10-25 years based on loan balance) and a new income-driven Repayment Assistance Plan (RAP). For students currently repaying loans, we provide support resources at austincc.edu/loanrepayment and will update this resource as new guidance and repayment options become available.

Institutional Accountability Measures

Beyond financial aid, the bill includes broader institutional accountability measures. One provision states that starting January 1, 2026, undergraduate and graduate academic programs that fail to demonstrate sufficient earnings outcomes in two out of three years will lose access to federal student loans. ACC will monitor and respond to federal guidance on this provision.

If you have questions about how these provisions may impact our students, please reach out to Jason Briseno, Financial Assistance and Veterans Affairs executive dean, at [email protected]. We’ll share further updates as new federal and state guidance becomes available.