2026-27 OB3 Federal Financial Aid Changes

The One Big Beautiful Bill Act (OB3 or OBBBA), sometimes also referred to as the "Working Families Tax Cuts" Act, was signed into law on July 4, 2025 through the budget reconciliation process.  This legislation contains significant provisions that reshape student financial aid. This information provided by the National Association of Financial Aid Administrators (NASFAA) should ensure that students and families understand the changes coming as a result of the One Big Beautiful Bill Act. The changes to financial aid programs go in to effect for the 2026-27 Academic Year. 

Federal Student Aid (FSA) has released helpful information for students on all the changes to federal financial aid programs included in the One Big Beautiful Bill Act.

The U.S. Department of Education has not yet published final regulations to implement these changes. As a result, some questions remain unanswered—both at the federal level and within financial aid offices.

The MSU Financial Aid Office is committed to supporting students throughout this transition and will provide guidance as more information becomes available, especially as we approach the Fall 2026 semester.