Springfield colleges navigate changes to federal aid

Springfield area colleges and universities have been working to understand and explain how the “One Big Beautiful Bill Act” will impact students’ access to federal financial aid options, including loans and the Pell Grant.

Signed into law a year ago by President Donald Trump, the legislation also introduced a range of spending and tax cuts, and changes to safety net programs including food stamps and Medicaid.

According to the National Association of Student Financial Aid and Administrators, the act included $10 billion in mandatory funding to address the impending Pell Grant shortfall while also expanding eligibility to include certain short-term, career-focused programs.

The changes impact eligibility, types of loans, annual and lifetime loan amounts, and repayment plans.

The act also allows institutions to impose lower program-level loan limits.

The U.S. Department of Education has been developing its guidance for how changes will be implemented as lawmakers have sought to reverse or lessen the impact.

Dawn Medley, vice president for enrollment management at Missouri State University, said the changes are manageable but might seem overwhelming to a low-income student or individuals who are the first in their family to go to college.

“My concern is students will be like ‘It’s too much, it’s too confusing, and I won’t apply’ or they will go ahead and self-select to not go to college and apply for aid,” Medley said.

The Pell Grant provides need-based funding to undergraduate students and typically does not have to be repaid.

The amount is based on financial need, enrollment status and cost of attendance.

Under the change, students whose tuition and fees are covered by state, institutional or private grants and scholarships will no longer be eligible for the Pell Grant.

“People are like ‘Well, their full cost of attendance is paid’ but what concerns me if a student has a tire blowout or get their hours cut at their part-time job, or whatever, there is no safety net there and that is usually what Pell Grant provides,” Medley said.

Medley said MSU is reviewing its scholarship strategies and more emergency aid will likely be needed. The university also hired a full-time staffer to track federal aid rule changes and ensure compliance.

“We’ve tried to communicate with students proactively and let them know these changes are happening,” she said.

Students will be able to apply Pell Grant funds toward an eligible workforce program, which typically runs 8-14 weeks.

For the 2026-27 year, the maximum Pell Grant amount is $7,395, but since workforce programs are typically shorter than an academic year, the amount may be reduced or prorated.

Hal Higdon, chancellor of Ozarks Technical Community College, said the option will benefit students looking to quickly enter or advance in a job and the institutions that serve them.

“The community colleges that are very focused on workforce development, like us, will be the winners,” he said.

Higdon said the state is coming up with a list of eligible programs.

“Some of the programs are problematic. They have to be 14 weeks or less. They have to be stackable,” he said. “A good example of a program that fits perfectly is phlebotomy.”

He said programs must be in place for at least one year to be eligible.

“It can’t be a new program, which I actually think is smart because we have some bad actors who are just out to get students in the door and get their money and get them out with a lousy credential,” he said.

Higdon said the guidelines for the changes have been released and serve as a starting point but will likely be refined.

Kevin Kropf is Drury University’s executive vice president of enrollment, marketing and communications and head of the Drury GO program.

He said there are new limitations on how much moms and dads can borrow through the federal Parent PLUS program for their undergraduate students.

Through the program, parents can borrow up to $20,000 per year for each dependent child with a $65,000 aggregate limit per dependent child.

Of the aggregate limit, Kropf said the university has “very few, like less than 20, who are even approaching that number.”

“It’s really impacting schools that have a much heftier price tag than us,” he said.

Kropf said if parents take out the maximum amount for the first three years, they may only be able to borrow $5,000 in the final year.

“Now you are looking at private loans, you’re looking at higher interest rates and more challenging repayment programs,” he said.

There are different loan limits for graduate students and those seeking a professional degree, which is generally at the doctoral level and includes those seeking to become attorneys, veterinarians, medical doctors, dentists and clinical psychologists.

Unless changes are approved, graduate students will have a cap of $100,000 in federal loans for their program.

Professional students are expected to face a cap of $200,000 in federal loans, minus any amount received as a graduate student.

“We could see some impacts on the physician assistant program, but we’ve not really seen that yet for the class that is starting,” he said.

He said the Drury program that combines a bachelor’s degree and master’s degree in architecture will likely not see any change in access to federal loans.

“That is considered an undergraduate master’s because it is a five-year program, so it’s not impacted by that,” he said. “Our other master’s programs, the price point is such that they are not impacted by the loan limits for grad programs.”

Medley, of MSU, said she worries that the lifetime limits of professional degrees may result in students graduating with more volatile debt. She said programs that train doctors or pharmacists are expensive and leave little time for part-time jobs.

“That is not enough usually to cover tuition, clinical expenses, as well as living expenses while you’re pursuing those professional degrees, so we’re going to see a huge uptick in private lending,” she said.

Kropf encouraged students or parents with questions to reach out.

“For a place like Drury, we build relationships with students so we can talk through all of their different opportunities,” he said. “We can help guide them.”

Kropf said the One Big Beautiful Bill changes are just the latest to hit students trying to access funding for higher education, noting the post-pandemic overhaul of the Free Application for Federal Student Aid, or FAFSA, is another. It is the starting point for any student seeking grants, scholarships, work-study funds and loans.

“We’ve been living in this era of dramatic changes, so while not ideal in any stretch of the imagination, we’ve adapted before,” he said. “It’s just what we have to adapt to now.” •