Federal Aid Changes
Page last reviewed: [May 2026] — The federal rulemaking process is ongoing. This page will be updated as new information becomes available. For the latest directly from the Department of Education, visit Federal Student Aid’s OB3 Updates page.
Federal student aid is now linked to future earning potential, making it more important than ever to choose a career path early and complete your program within two years — both to finish strong and to protect your federal aid eligibility if you later pursue a bachelor’s degree or higher. Changes to federal student aid loan limits for students and parents were signed into law through the One Big Beautiful Bill (OB3 / H.R. 1), passed in July 2025. Most provisions take effect July 1, 2026.
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The OB3 law makes significant changes to federal student loans, borrowing limits, and repayment options. Many provisions require additional federal rulemaking before they can be fully implemented, and the U.S. Department of Education is currently working through that process.
FAFSA
Beginning April 26, 2026, the federal government added a new identity verification step to the FAFSA process to protect students from fraud. Going forward, a random selection of applications will be flagged for an identity check.
Being selected for a check does not mean you did anything wrong. The checks are designed to improve security and reduce fraudulent applications.
How identity checks work
If your application is selected, you will receive an email from Federal Student Aid (FSA) asking you to complete a short live camera check — just a few minutes — on your phone or tablet. You will need a valid, unexpired government-issued photo ID.
If you receive a verification request, respond right away. Delays in completing the check will delay your financial aid disbursement. If you do not have a phone or tablet with a camera, contact the Financial Aid Office to discuss your options. See the Financial Aid Office contact information at the bottom of this page.
What to do now
If you have already submitted your 2026–2027 FAFSA, watch your PC student email account closely and regularly for any verification requests from FSA and respond promptly.
| Update | Change Level | Before April 26, 2026 | After April 26, 2026 |
|---|---|---|---|
| Identity verification | New Rule | Standard FAFSA submission with verification only when flagged, typically requiring paper documentation. | Real-time identity screening tiers applicants into four risk levels. High-risk applicants
must complete live camera verification on a phone or tablet. Note: The California Dream Act Application (CADAA) is not impacted by this change. |
Pell Grants
Short-term career training programs will eventually become eligible for Pell funding under OB3. However, each program must go through a federal approval process that typically takes a year or more. Porterville College will communicate when specific programs qualify. In the meantime, standard Pell eligibility rules continue to apply for currently approved programs.
| Program Type | Change Level | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|---|
| Pell Grant eligibility (standard) | Moderate Change | Available based on financial need (Student Aid Index). Students enrolled less-than-half-time qualified for a partial Pell award. | Students whose non-federal aid already covers the full cost of attendance are no longer
eligible. New exclusions added for students with high assets or foreign income sources. Note: “Non-federal aid” means aid that does not come from the U.S. government — for example, Cal Grant, the California College Promise Grant (CCPG), or scholarships. See the Non-Federal Aid at PC section below for a full list. |
| Workforce Pell (short-term programs) | New Program (Not yet available at Porterville College) |
Pell Grants could not be awarded for programs lasting fewer than 16 weeks. | Pell Grants will be available for approved workforce programs lasting 8–15 weeks and 150–600 clock hours, provided the program meets federal completion and job placement benchmarks. Individual programs must obtain federal approval, which takes a year or more. Porterville College will announce when specific programs qualify. |
Non-Federal Aid at Porterville College
Not all financial aid is federal aid. The OB3 law and the changes described on this page apply only to federal aid programs (such as Pell Grants and federal student loans). The following aid programs available at Porterville College are state or institutional aid — they are not federal aid and are not affected by OB3.
- California College Promise Grant (CCPG) — Waives enrollment fees for eligible California residents.
- Cal Grant (A, B, and C) — State grants for eligible California residents based on need, income, and GPA.
- Student Success Completion Grant (SSCG) — Additional state grant for full-time Cal Grant B and C recipients at California Community Colleges.
- CHAFEE Grant for Foster Youth — State grant of up to $5,000/year for current or former foster youth.
- Student with Dependent Children Grant — State access award for eligible Cal Grant recipients who have dependent children.
- Finish Line Scholars Program — Emergency aid and scholarships for students on track to transfer, complete a degree, or earn a certificate.
- EOPS Grants — Grants and support services through the Extended Opportunity Programs & Services program.
- PC Foundation Scholarships — Institutional scholarships awarded through the Porterville College Foundation.
For full details on all aid programs available at PC, visit the Financial Aid Programs page. If you have questions about which of your aid awards are federal vs. non-federal, contact the Financial Aid Office. See the contact information at the bottom of this page.
Student Borrowing
Prior to July 1, 2026, students could borrow federal loans for any length of time as long as they remained enrolled and met eligibility requirements. Beginning July 1, 2026, loan eligibility is tied to the expected length of your program. A two-year program receives roughly two years’ worth of loan access — regardless of how long you actually take to finish.
This change has the biggest impact on part-time students. Enrolling in 9 units per term instead of 15 can extend a two-year program into a four-year timeline, but your loan eligibility still runs out after two years. Additionally, new borrowers attending less than full time (fewer than 12 units) will have their loan amounts calculated proportionally based on their unit load — similar to how Pell Grants have always worked.
| Loan Type | Change Level | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|---|
| Loan eligibility duration | Major Change | Students could borrow as long as they remained enrolled in at least 6 units and met all other eligibility criteria. | Loan eligibility is now tied to program length. A two-year program receives two years of loan access, even if you have not yet completed the program. |
| Part-time loan amounts | Major Change | Part-time students could borrow the same annual amounts as full-time students. | Loan amounts are prorated based on unit load. Students enrolled at half-time receive approximately half the annual loan amount. |
| Undergraduate loans (subsidized & unsubsidized) | Little/No Change | $5,500–$7,500 per year depending on year in school. $31,000 lifetime cap for dependent undergraduates. | Annual and lifetime limits remain unchanged. |
| Graduate student loans | Major Change | $20,500 per year. $138,000 aggregate limit for undergraduates. Grad PLUS available up to cost of attendance with no overall cap. | $20,500 per year. New $100,000 lifetime cap on total graduate borrowing. Grad PLUS loans eliminated. Students planning to transfer and pursue graduate degrees should factor this into their long-term planning. |
| Professional student loans (medicine, law, pharmacy) | Major Change | $20,500 per year. $138,500 aggregate. Grad PLUS available up to cost of attendance. | $50,000 per year. $200,000 lifetime cap. Grad PLUS loans eliminated. |
| Lifetime federal loan cap (all student borrowing combined) | New Rule | No single unified lifetime cap across all federal student loan types. | $257,500 total lifetime cap across undergraduate, graduate, and professional loans combined. |
Parent Borrowing
Parents can now borrow a maximum of $20,000 per year and $65,000 total per child (across all years of enrollment). Previously, there was no annual or lifetime cap on Parent PLUS loans. Because Porterville College’s cost of attendance is relatively low, many families may not reach this ceiling — but families planning for transfer to a four-year institution should factor these new limits into their long-term financial planning.
Students who are not California residents are charged higher tuition and fees. If you were planning to use a Parent PLUS loan to cover those additional costs, please be aware that annual loan limits now apply. Parents can no longer borrow up to the full cost of attendance. View Porterville College’s California Residency Requirements.
| Loan Type | Change Level | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|---|
| Parent PLUS loans | Major Change | Parents could borrow up to the full cost of attendance minus other aid each year. No annual cap and no lifetime cap. | $20,000 per year per child. $65,000 lifetime cap per child. The cap follows the student, not the school, so it applies regardless of how many institutions they attend. |
Protection for Existing Borrowers
Students who were already enrolled and borrowing before July 1, 2026, are protected under a “legacy provision.” These students may continue borrowing under the old rules for up to three years, or until they complete their program — whichever comes first. This protection ends early if the student withdraws, transfers to a different program, or remains enrolled longer than their program’s expected length.
| Provision | Change Level | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|---|
| Legacy provision (interim exception) | New Rule | Not applicable. Existing rules applied to all borrowers. | Students who had at least one federal loan disbursed before July 1, 2026, may continue under the previous loan rules for up to 3 years or until program completion. Protection is lost if the student withdraws, changes programs, or exceeds the expected program length. |
Earnings Accountability Standard
Under OB3, degree and certificate programs are now subject to a federal earnings accountability standard. Programs whose graduates’ earnings do not exceed those of a typical high school graduate in the same field may no longer be eligible for federal financial aid funding. The law benchmarks program outcomes against both state and national average earnings data.
This change reinforces the importance of connecting your academic program to a career path with strong earning potential. View Porterville College’s Gainful Employment Disclosures to see more information about PC programs.
Questions? Contact Financial Aid
Financial Aid Office
Phone: 559.791.2301
Email: pc_faid@portervillecollege.edu
Location: AC-103
Hours: see the FA home page for hours info
