Financial Aid Updates

Federal Financial Aid Changes Effective July 1, 2026

Federal financial aid requirements changed for the 2026–27 award year under the One Big Beautiful Bill Act, signed into law on July 4, 2025. These changes may affect Federal Pell Grant eligibility and the amount some students can borrow through the Federal Direct Loan Program.

Important: Federal requirements and implementation guidance may continue to be updated. NEMCC will revise this page as additional information becomes available.

Federal Pell Grant Eligibility

Beginning with the 2026–27 award year, you may not qualify for a Federal Pell Grant if:

• Your Student Aid Index (SAI) is $14,790 or higher. This threshold is twice the maximum Federal Pell Grant award for 2026–27.
• Grants and scholarships from nonfederal sources—such as state, institutional or private aid—meet or exceed your total cost of attendance.

The SAI limitation does not apply to certain students who qualify under the federal Special Rule for dependents of eligible deceased service members and public safety officers.

Understanding Cost of Attendance

Your cost of attendance is not the same as your college bill. It is an estimated yearly budget that may include tuition, fees, books, supplies, transportation, housing, food and other education-related expenses.

Example:
A student’s cost of attendance may be $18,000 for the academic year, while the student’s actual bill from NEMCC is $4,500. The remaining amount represents estimated expenses such as transportation, books, housing and food.

For this Pell Grant rule, federal regulations compare your total nonfederal grants and scholarships with your full cost of attendance—not only the amount shown on your NEMCC bill.

Federal Direct Loans and Part-Time Enrollment

For loan periods beginning on or after July 1, 2026, the annual Federal Direct Loan limit must be reduced when a student is enrolled less than full time. The reduction is based on the student’s enrollment level.

Undergraduate enrollment levels at NEMCC

• Full time: 12 or more credit hours
• Half time: At least 6 credit hours
• Less than half time: Fewer than 6 credit hours

Students must be enrolled at least half time to receive a Federal Direct Loan. A student enrolled in fewer than six credit hours is not eligible for a loan disbursement for that enrollment period.

Before changing your schedule

Dropping or withdrawing from a class may affect:

• Your enrollment status
• Your current loan eligibility
• A remaining loan disbursement
• Your overall financial aid eligibility

NEMCC must review enrollment before each applicable loan disbursement. Students should contact the Financial Aid Office before dropping or withdrawing from a course.

Lifetime Federal Student Loan Limit

A new $257,500 lifetime maximum aggregate loan limit applies to federal student loans received by a student.

This lifetime limit includes applicable federal student loans received for undergraduate, graduate and professional study. It applies without regard to amounts later repaid, forgiven, canceled or discharged.

Undergraduate annual and aggregate limits for Direct Subsidized and Direct Unsubsidized Loans have not changed.

Limited Exception for Certain Current Borrowers

Some students who were enrolled in their current program by June 30, 2026, and received a qualifying Federal Direct Loan for that program before July 1, 2026, may remain eligible for the loan limits in effect before July 1, 2026.

The exception generally lasts for the shorter of:

• Three academic years; or
• The remaining published length of the student’s program.

Eligibility may end if the student changes institutions or programs or has a break in enrollment. Students should contact the NEMCC Financial Aid Office to determine whether the exception applies to their individual circumstances.

Parent PLUS Loans at NEMCC

Northeast Mississippi Community College does not participate in the Federal Direct Parent PLUS Loan Program.

Parent PLUS Loans are therefore not available to parents of NEMCC students through NEMCC. Information about changes to Parent PLUS borrowing limits has been omitted from this page because the program is not offered by the college.