1. What is the OBBBA?

The One Big Beautiful Bill Act (OBBBA) is federal legislation that made changes to federal financial aid programs. Some of the changes apply beginning with the 2026-27 award year and affect Pell Grant eligibility, FAFSA calculations, and federal student loans.

Important: Federal student aid regulations are subject to change as the U.S. Department of Education implements the OBBBA. Please monitor Federal Student Aid—OBBA Information . Financial aid eligibility is determined based on federal regulations, your FAFSA information, enrollment, program eligibility, and your individual financial aid history. Students should contact the LIT Financial Aid Office with questions about their specific situation.

2. What is the new Schedule of Reductions for student loans?

Beginning with the 2026-27 award year, the OBBBA changes how federal Direct Loan amounts are determined for students who are enrolled less than full-time.

If you are enrolled less than full-time for the academic year (Fall and Spring), your annual federal student loan eligibility may be reduced based on your enrollment level. The reduction applies to the annual loan limit and is determined using the federal Schedule of Reductions established by the U.S. Department of Education.

This means that a student who previously received the maximum annual loan amount while attending less than full-time may not be eligible to borrow the same amount under the new rules.

Example: If you are enrolled less than full-time, LIT will review your enrollment and calculate your federal loan eligibility using the applicable federal requirements. You still must be in 6 hours to receive a Federal Direct Loan.

3. What happens to my existing federal student loans?

Changes to federal student loan programs do not mean that your existing federal student loan automatically disappears or that you automatically have to repay it immediately. If you are currently making payments on federal student loans, monitor communications from your federal loan servicer for information about your repayment options.

4. When will my financial aid disburse?

LIT plans to begin disbursing eligible financial aid on September 10, 2026, which is after the Census date. Your financial aid must be fully processed and you must meet all eligibility requirements before funds can be disbursed. This may include completing required financial aid documents, resolving outstanding requirements, maintaining eligibility, and being enrolled.

Important: A financial aid award showing on your Self-service Banner does not necessarily mean the funds have already been disbursed or a credit balance refund has been issued.

5. What is the Census Date?

The Census Date is the date when LIT finalizes and locks student enrollment for the term. It is also the last day students can drop a course and receive a refund. Students may still drop a course after the Census Date; however, the course will be recorded as a W (Withdrawal), and the student will not receive a refund. Your enrollment as of the Census Date is used to determine your financial aid eligibility and award amount. Students should make sure their class schedule is correct before the Census Date, as changes after this date may affect their financial aid.

6. Could my financial aid change after I register for classes?

Yes. Changes to your enrollment can affect your financial aid eligibility. Your Pell Grant, loans, or other aid may be adjusted if your enrollment changes or if you no longer meet federal or institutional eligibility requirements.

7. What should I do to make sure my financial aid is ready for disbursement?

• Complete the FAFSA.
• Review their financial aid offer.
• Complete all required financial aid documents.
• Resolve any outstanding requirements.
• Register for the appropriate courses.
• Check their LIT student account for holds or outstanding balances.
• Monitor their LIT email for financial aid notifications.

8. Can I use my LIT financial aid to pay for housing at Lamar University?

Yes. If you are enrolled at Lamar Institute of Technology (LIT) and live in Lamar University housing, your LIT financial aid may be used to help pay your Lamar University housing charges.

If you have been awarded financial aid at LIT, you can view your awards through your Self-Service Banner. This information can be used when securing your Lamar University housing process.

Once your financial aid has been disbursed and you have met all eligibility requirements, LIT may send a wire transfer directly to Lamar University for eligible housing charges.

The amount sent to Lamar University will depend on your available financial aid and your LIT account balance.

9. Will the new federal student loan Schedule of Reductions affect my VA or Hazlewood benefits?

No. The federal Schedule of Reductions applies to applicable federal Direct Loan eligibility. It does not reduce the amount of VA education benefits or Hazlewood benefits you are otherwise eligible to receive.

10. What should I do if I receive VA benefits, Hazlewood, and federal financial aid?

Depending on your eligibility, you may be able to receive multiple forms of assistance. Because the rules governing each program are different, LIT will review your individual eligibility and apply the appropriate federal and state requirements.

Important Reminder: The OBBBA changes federal student aid, but it does not eliminate VA education benefits or Hazlewood. Your eligibility for VA benefits, Hazlewood, Pell Grants, and federal student loans is determined separately, and receiving one type of benefit does not automatically mean you will lose another.

For questions about your VA education benefits or Hazlewood eligibility, contact the appropriate LIT Veterans Affairs/financial aid staff.