Financial Aid & OBBBA Information

The One Big Beautiful Bill Act (OBBBA) would make changes to federal student loans starting July 1, 2026 if enacted. The most significant change is that Graduate PLUS Loans will no longer be available to new borrowers. However, current students have important protections.

Note: OBBBA is currently proposed legislation and has not been signed into law. All dates and provisions described in this FAQ are subject to change based on final legislation and federal rulemaking.

No. If you are enrolled in your program as of June 30, 2026, and have received any federal loan for your program before July 1, 2026, you can continue accessing Graduate PLUS Loans throughout your program. This means you don’t need to have borrowed a Graduate PLUS Loan specifically – any Direct Loan qualifies you for this protection.

Stay in your current program and degree type at Pacifica Graduate Institute. You cannot change to a different degree program without losing this protection. Taking a leave of absence may affect your grandfathered status and could result in loss of Graduate PLUS loan access, as you’re limited to a maximum of three years of continued eligibility regardless of program completion. Contact the Office of Financial Aid before making any program modifications to understand the impact on your grandfathered status.

If you withdraw from your program at any point after qualifying for grandfathered status, you will permanently lose access to Graduate PLUS Loans under the old limits. This is why completing your program in a timely manner is important.

The loan funds must have been disbursed and credited to your student account before July 1, 2026. Simply having a loan approved or processed is not sufficient – the funds must actually be received.

This is still being determined through federal rulemaking. We are actively monitoring these discussions and will update students as soon as we have clarity on whether any of our programs qualify for the higher professional program limits of $50,000 per year. We expect further guidance from the Department of Education by mid-November and will communicate any updates immediately.

No, OBBBA only changes federal student loan programs. Private student loans from banks, credit unions, and other private lenders are not directly affected by these federal loan limit changes.

However, because Graduate PLUS loans will no longer be available to new borrowers starting July 1, 2026, some students may consider private loans to fill funding gaps. Before considering private loans, remember that:

• Federal loans generally offer better terms, protections, and repayment options
• Private loans typically require credit checks and may have higher interest rates
• Private loans don’t offer the same forgiveness programs or income-driven repayment options as federal loans

We strongly recommend exhausting all federal loan options first, including the new loan limits under OBBBA, before considering private alternatives.

Focus on your studies and complete your program in a timely manner. If you’re enrolled before June 30, 2026, and have borrowed any federal loan for your program, you’re protected under the grandfathering provisions.

Contact our Office of Financial Aid directly by calling 805-679-6197, or sending an email to financialaid@pacifica.edu if you have specific questions about your situation.

Starting July 1, 2026, there will be two main repayment plans:

• Standard Repayment Plan: Fixed monthly payments with repayment terms based on your total loan balance:
  • Up to $25,000: 10 years
  • $25,000-$50,000: 15 years
  • $50,000-$100,000: 20 years
  • Over $100,000: 25 years
• Repayment Assistance Plan (RAP): Income-based payments with a minimum of $10 per month, with loan forgiveness after 30 years of payments.

New borrowers* after July 1, 2026 will only have access to two repayment options: a revised standard repayment plan and the new Repayment Assistance Plan (RAP). Existing borrowers currently on SAVE, PAYE, and ICR plans must transition to new repayment options by July 1, 2028.

*Clarification on “New Borrower” Definition: A “new borrower” under OBBBA means someone who has never borrowed any federal Direct Loan before July 1, 2026. Students who borrowed federal loans in 2025 but receive additional disbursements in 2026 would still be considered “existing borrowers” with grandfathered protections.

If you have loans that were disbursed before July 1, 2026, you can continue using existing repayment plans (standard, graduated, extended) until July 1, 2028. After that date, you must choose between the new Standard Plan or RAP.

RAP calculates your payment based on your adjusted gross income and family size, with a $50 monthly reduction for each dependent child. The government will cover unpaid interest so your balance always decreases, and any remaining balance is forgiven after 30 years of payments.

Public Service Loan Forgiveness (PSLF) will continue to be available, but you must enroll in the new Repayment Assistance Plan to be eligible.

Important Privacy Notice: In accordance with FERPA, your financial aid records are confidential. We will only share information about your loans with authorized parties as permitted by law. You have the right to review your financial aid records and request corrections if needed.

Default occurs when you fail to make payments on your federal student loan for 270 days (about 9 months). Default has serious consequences including damage to your credit score, wage garnishment, tax refund seizure, and loss of eligibility for additional federal student aid.

Contact your loan servicer immediately if you’re having trouble making payments. Options may include:

• Income-driven repayment plans
• Deferment or forbearance (limited to 9 months within any 24-month period starting July 1, 2027)
• Loan rehabilitation (you can now rehabilitate twice, with minimum payments of $10)

You have the right to:

• Receive clear information about your loan terms and conditions, including annual percentage rates, fees, and total repayment amounts
• Receive information about program completion rates, job placement rates, and median earnings of graduates in your program
• Choose your repayment plan
• Receive forbearance or deferment if you qualify
• Apply for loan forgiveness programs if eligible

You must:

• Make payments on time according to your repayment plan
• Keep your contact information updated with your loan servicer
• Complete entrance and exit counseling as required
• Notify your servicer of any changes that might affect your ability to repay

The new Repayment Assistance Plan includes protections like interest subsidies (the government covers unpaid interest so your balance always decreases) and principal subsidies (ensuring your balance decreases by at least $50 per month).

Pacifica is actively preparing for OBBBA implementation by:

• Developing strategies to address funding gaps for students affected by Graduate PLUS loan elimination
• Identifying and communicating with “grandfathered” students about their continued eligibility
• Updating all financial aid materials and communications to reflect the changes

We are conducting comprehensive risk assessments of all programs to determine potential impacts from the new earnings metrics. These metrics compare graduates’ median earnings to their debt levels and determine whether programs provide sufficient value to justify federal loan eligibility. If any program fails the metric for a single year, we will proactively communicate with students as required by law.

Pacifica has assigned a dedicated team to monitor ongoing guidance from the Department of Education. We will update our website, financial aid materials, and communicate directly with students as new information becomes available.

Contact Pacifica’s Office of Financial Aid directly by calling 805-679-6197, or sending an email to financialaid@pacifica.edu. Our staff is actively involved and working with the new regulations and alternative financing options to help you navigate these changes.

We recognize that the elimination of Graduate PLUS loans presents the most significant financial risk to our students. We are developing comprehensive strategies to address this funding gap and maintain accessibility to our programs.