Federal Financial Aid Changes

What MC Students Need to Know

Montgomery College is committed to helping you understand changes that may affect your financial aid.

Beginning July 1, 2026, new federal regulations will impact Pell Grants, federal student loans, and Parent PLUS Loans.

Below is a summary of what these changes mean for you as a student.

Pell Grant Eligibility Changes

• Pell Grant eligibility will be more strictly tied to your Student Aid Index (SAI).
• The SAI is calculated using information provided on the FAFSA form. The school uses your SAI to determine your federal student aid eligibility.
• If your SAI is more than twice the maximum Pell Grant amount, you may no longer qualify, even if you received a Pell Grant in the past.
• The maximum Pell grant award is $7395.00 annually

MC Tip: File your FAFSA early each year and review your financial aid offer carefully.

Federal Student Loans & Enrollment Requirements

• You must still be enrolled in at least 6 credits in your program of study to receive federal student loans.
• If you enroll in 6–11 credits, your loan amount will be reduced based on enrollment.
• Loan eligibility is determined at the time of disbursement.
• If you drop or withdraw from classes after disbursement, your loan may be reduced in the current or future semester.

MC Tip: Speak with Financial Aid before dropping courses to understand the impact on your aid.

Parent PLUS Loan Changes

For new Parent PLUS loan borrowers starting July 1, 2026:

• $20,000 annual maximum
• $65,000 lifetime maximum per dependent student

Parents who borrowed before July 1, 2026, may continue borrowing under current limits for up to three academic years or until graduation—whichever occurs first.

What This Means for You

• Enrollment choices matter more than ever
• Dropping classes can affect your loans
• Planning ahead can help reduce unexpected costs

We encourage you to reach out if you have questions. We also invite you to use ‘Monty’ our chatbot to ask questions around the clock 24/7.

Federal Financial Aid Changes Effective July 1, 2026 — Student FAQ

What is changing in federal financial aid?

New federal regulations starting July 1, 2026, affect Pell Grants, federal student loans, and Parent PLUS Loans. These rules may change who qualifies and how much aid can be received.

Will my Pell Grant be affected?

Possibly. If your Student Aid Index (SAI) is more than twice the maximum Pell Grant, you may not be eligible—even if you qualified before.

Do I still need 6 credits for student loans?

Yes. You must be enrolled in at least 6 credits in your program of study to receive federal student loans.

What if I’m enrolled less than full‑time?

If you take 6–11 credits, your loan amount will be reduced proportionally based on your enrollment level.

What happens if I drop a class after my loan pays out?

Your loan eligibility is reviewed at disbursement.

If you drop or withdraw afterward:

• Your loan may be reduced
• The adjustment could happen this semester or next

Are Parent PLUS Loans changing?

Yes, for new Parent PLUS borrowers starting July 1, 2026:

• $20,000 annual maximum
• $65,000 lifetime maximum per student

What if my parent borrowed PLUS loans before July 1, 2026?

They may continue borrowing under current rules for up to three academic years or until you graduate—whichever comes first.

What should I do now?

• Complete the FAFSA every year
• Enroll only in courses you plan to complete
• Talk to Financial Aid before dropping classes or borrowing loans
• Review your aid offer carefully