Federal Financial Aid Changes Beginning with the 2026–2027 Award Year

Federal Pell Grant Changes

The following federal changes apply beginning with the 2026–2027 award year.

• Full-time Pell Grant
  Federal law continues to define full-time enrollment as 12 or more units per semester. Students enrolled in fewer than 12 units may still qualify for a Federal Pell Grant, but their award will generally be adjusted based on their enrollment level.

• Pell Grant for Students Enrolled Less Than Half-time
  Students enrolled in fewer than six units may still qualify for a Federal Pell Grant if they otherwise meet all federal eligibility requirements. Pell Grant awards are based on enrollment intensity, so students enrolled less than full time generally receive a reduced award.

• Workforce Pell Grants
  Federal law establishes a Workforce Pell Grant program for certain eligible short-term workforce training programs. These grants are not available for remedial coursework, noncredit courses, English language learning courses, or study abroad programs. Ventura College is reviewing the federal requirements to determine whether any college programs may qualify. Additional information will be provided if eligible programs become available.

• Pell Grant Eligibility and Other Gift Aid
  Beginning with the 2026–2027 award year, students whose nonfederal grants and scholarships equal or exceed their full Cost of Attendance (COA) are generally not eligible to receive a Federal Pell Grant, even if they would otherwise qualify. If a student is ineligible for a Pell Grant under this provision, the student's Pell Lifetime Eligibility Used (LEU) will not be affected.

• Pell Grant Eligibility with a High Student Aid Index (SAI)
  Beginning with the 2026–2027 award year, students whose Student Aid Index (SAI) exceeds twice the maximum Federal Pell Grant award are generally not eligible to receive a Federal Pell Grant. For the 2026–2027 award year, this threshold is $14,790. Certain students may still qualify under the federal Special Rule.

• Foreign Earned Income
  Beginning with the 2026–2027 award year, the foreign earned income exclusion reported on the FAFSA is included when determining Federal Pell Grant eligibility. This change may reduce or eliminate Pell Grant eligibility for some students and families with foreign earned income.

  Important: These changes apply beginning with the 2026–2027 award year. Federal Pell Grant eligibility is determined based on your FAFSA information, Student Aid Index (SAI), enrollment level, Cost of Attendance (COA), and other federal eligibility requirements. Ventura College will determine your eligibility in accordance with federal regulations.

Federal Direct Loan Changes

The following federal changes apply beginning with the 2026–2027 award year.

• Annual Loan Proration Based on Enrollment
  Beginning with the 2026–2027 award year, annual Federal Direct Loan eligibility for undergraduate students may be prorated based on enrollment intensity. Students must still be enrolled at least half time (6 eligible units) to receive a Federal Direct Loan. Students enrolled in fewer than 12 units may qualify for a reduced annual loan amount based on their enrollment level.

• Annual and Aggregate Loan Limits
  The standard annual and aggregate Federal Direct Subsidized and Unsubsidized Loan limits for undergraduate students have not changed. Your maximum loan eligibility continues to depend on your grade level, dependency status, enrollment level, Cost of Attendance (COA), other financial aid received, and remaining federal loan eligibility.

• Students enrolled in Ventura College's Bachelor of Science in Automotive Career Education who have attained junior or senior academic standing may qualify for the third-year and fourth-year undergraduate annual loan limits established under federal law.

• Lifetime Federal Student Loan Limit
  Federal law establishes an overall lifetime borrowing limit of $257,500 for most federal student loans, excluding Parent PLUS Loans. Most Ventura College students will reach the existing undergraduate aggregate loan limits before reaching this overall lifetime borrowing limit.

• Parent PLUS Loan Limits
  Beginning July 1, 2026, Parent PLUS Loans are subject to new borrowing limits of $20,000 per academic year and $65,000 in aggregate for each dependent undergraduate student. These limits apply to eligible parents who borrow on behalf of a dependent undergraduate student. Additional federal guidance regarding certain exceptions for current Parent PLUS borrowers is still being finalized.

  Important: Submitting a Federal Direct Loan Request does not guarantee approval of a loan or a specific loan amount. Ventura College will determine your eligibility based on federal regulations, your enrollment, Cost of Attendance (COA), financial need (when applicable), annual and aggregate loan limits, and your remaining federal loan eligibility.

   

Federal Student Loan Repayment Changes

The following repayment changes apply to federal student loan borrowers based on when they first receive a new Federal Direct Loan.

• Borrowers Who Receive a New Federal Direct Loan on or After July 1, 2026
  Borrowers who receive a new Federal Direct Loan on or after July 1, 2026, generally will have two federal repayment plan options:

• A Standard Repayment Plan with fixed monthly payments over a repayment term based on the total amount borrowed.
• The new Repayment Assistance Plan (RAP), an income based repayment plan that generally calculates monthly payments using the borrower's income and family size.

• Current Borrowers
  Borrowers who do not receive a new Federal Direct Loan on or after July 1, 2026, may continue to be eligible for the current Standard, Income Based Repayment (IBR), Graduated, and Extended Repayment Plans. They may also choose to enroll in the new Repayment Assistance Plan (RAP), if eligible.

• Borrowers currently enrolled in the Income Contingent Repayment (ICR), Pay As You Earn (PAYE), or Saving on a Valuable Education (SAVE) plans must transition to another eligible repayment plan by July 1, 2028. If another repayment plan is not selected by that date, the borrower will generally be transitioned to the Repayment Assistance Plan (RAP).

• Repayment Assistance Plan (RAP)
  Under the Repayment Assistance Plan (RAP), monthly payments are generally based on the borrower's Adjusted Gross Income (AGI) and family size. Borrowers whose AGI does not reasonably reflect their current income may be required to provide additional documentation to the U.S. Department of Education. RAP includes a minimum monthly payment of $10 for most borrowers.

• Income Based Repayment (IBR)
  Federal law retains the current monthly payment cap for borrowers enrolled in the Income Based Repayment (IBR) Plan. The law also removes the requirement that borrowers demonstrate a partial financial hardship to enroll in IBR. Borrowers who remain in the IBR Plan may continue to qualify for loan forgiveness after 25 years of qualifying repayment, as provided under federal law.

• Economic Hardship and Unemployment Deferments
  For borrowers who receive their first Federal Direct Loan on or after July 1, 2027, the Economic Hardship Deferment and Unemployment Deferment are no longer available. Instead, eligible borrowers may qualify for discretionary forbearance for up to 9 months during any 24 month period, subject to federal requirements.

  Important: Federal student loan repayment options are administered by the U.S. Department of Education and your federal loan servicer. Repayment eligibility and available repayment plans depend on your individual borrowing history and the dates your federal loans were first disbursed. Ventura College encourages all borrowers to carefully review their repayment options before entering repayment.

Mixed-Status Families

Federal law does not directly change Federal Student Aid eligibility for otherwise eligible students from mixed-status families.

Parents and spouses who do not have a Social Security Number (SSN) may still complete their required portion of the FAFSA using their FAFSA Contributor account, if applicable.

Students should continue to submit the FAFSA and provide all required information. Ventura College will determine financial aid eligibility in accordance with federal regulations. Students with questions about their individual circumstances are encouraged to contact the Ventura College Financial Aid Office for assistance.