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Bowling Green, Ky. (WBKO) – The recently signed Big Beautiful Bill introduces significant changes to federal student loan handling, prompting questions as a new academic year approaches.

“one of the most common questions that we get is ‘Is federal aid going entirely away? Will there no longer be any federal student aid options for me?’ and that’s not the case, but we do hear students that are concerned necessarily about student aid in general,” said Western Kentucky University Department of Student Financial aid Assistance Director, Bryson Davis.

Key changes include tightened Pell Grant eligibility for higher-income families and expanded eligibility for those pursuing workforce training programs. The bill also limits Pell Grant usage for students with full scholarships, reduces loan repayment options, and caps federal borrowing amounts.

“As far as positives, there are several people that seem to be pleased about the interest rates that they are seeing with private lenders already at this point, so that is a way that students, a lot of times can save a little money in the long run,” Davis said. “They’ll end up wanting to just shop those rates and make sure they’re getting the best deal, but we are seeing some private lenders that are beating the Federal rate.”

Many of these changes will not take effect until the next academic year. Western Kentucky University is awaiting further guidance on several provisions. Students are advised to continue pursuing financial aid through customary channels.

“Coming into the new school year, students need to know that they just need to fill out the FAFSA as normal, so for 25-26, we are processing aid, getting their aid offers out to students already have been for months now,” Davis explained. “just need to go ahead and get that in, and then as information is made available to us and as we receive guidance on implementation of the new changes from the Big Beautiful Bill, we will work through that and communicate that out to our students.”

WKU encourages students with questions about their current loans to reach out for assistance.

Frequently Asked Questions:

Q: is federal student aid being eliminated?
A: No,federal student aid options will continue to be available.

Q: How does the Big Beautiful Bill affect Pell Grants?
A: It tightens eligibility for families with higher incomes and expands it for those in workforce training. Students with full scholarships may also have limitations on Pell Grant usage.

Q: What are the changes to student loans?
A: The bill downsizes loan repayment options and caps the federal amount an individual can borrow.

Q: Are private lenders offering better rates?
A: Some private lenders are currently offering interest rates lower than the federal rate, which could save students money in the long run.

Q: When do these changes take effect?
A: Many of the changes will not be implemented until at least the next academic year.

Q: What should students do now?
A: Students should continue to fill out the FAFSA as usual for the upcoming academic year. WKU will provide updates as guidance on the new changes becomes available.