EWC Highlights New Federal Student Loan Changes Effective July 1

TORRINGTON, Wyo. – Students and families planning to use federal student loans at Eastern Wyoming College should be aware of several significant federal changes taking effect July 1, 2026, as a result of the One Big Beautiful Bill Act (OBBBA), signed into law in 2025.

The changes affect loan eligibility for part-time enrollment, lifetime borrowing limits, Parent PLUS loans, and the timing of federal loan disbursements.

According to Eastern Wyoming College Director of Financial Aid Becky McAllister, understanding how enrollment impacts aid eligibility will be especially important moving forward.

“Students need to understand that their enrollment decisions now have a more direct impact on how much they may be eligible to borrow,” McAllister said. “Staying enrolled in 12 or more credit hours each semester remains the best way to maximize federal loan eligibility.”

Under the new federal regulations, students must remain enrolled at least half-time to qualify for federal student loans. At EWC, this generally means a minimum of six credit hours per semester for undergraduate students.

In addition, federal Direct Loan eligibility will now be more closely tied to enrollment intensity. Students enrolled in fewer than 12 credit hours per semester may see reduced borrowing eligibility, with loan amounts prorated based on their enrollment level. Students who withdraw from courses during a semester may also experience reductions in future loan disbursements, even if they remain technically full-time.

At EWC, Direct Loan eligibility will be determined based on enrollment at the time loans are disbursed. Changes in enrollment after disbursement may impact future aid eligibility.

Students enrolled in 12 or more credit hours per semester will continue to qualify for the maximum annual federal loan amount available to them. However, students attending less than full-time or those who reduce their course load after the semester begins may receive lower loan amounts in future terms.

The legislation also establishes new lifetime borrowing limits for federal student loans. Beginning July 1, 2026, students may borrow no more than $257,500 in federal student loans over their lifetime, regardless of whether loans are repaid.

In addition, new caps have been placed on Parent PLUS loans. Parents may now borrow up to $20,000 per year per student, with a lifetime maximum of $65,000 per student. While these changes may have limited impact for many EWC students, they could affect families planning to pursue four-year degrees after graduation.

McAllister said students should plan ahead and communicate with the Financial Aid Office if they anticipate schedule changes.

“We encourage students to stay in close contact with Financial Aid, especially if they are adjusting schedules, withdrawing from classes, or planning additional coursework,” McAllister said. “Our goal is to help students understand their options and avoid surprises.”

Because of the new federal requirements and more individualized loan calculations, students may also experience slightly delayed loan disbursements. EWC will initially award loans assuming full-time enrollment and recalculate eligibility after add/drop periods have ended.

“While the process may take a little longer, we will work as quickly as possible to ensure students receive their funding,” McAllister said. “We want students to know we are here to help them navigate these changes.”

Students with questions about how the federal loan changes may affect them are encouraged to contact the Eastern Wyoming College Financial Aid Office at 307-532-8224 or by email at financialaid@ewc.wy.edu.