Students and Universities Start Year in the Shadow of Trump’s ‘One Big Beautiful Bill’

August 17, 2026

President Trump's One Big Beautiful Bill Act (OBBBA) has imposed new federal student loan limits that are significantly impacting students at historically Black colleges and universities. The legislation, which took effect July 1, caps Parent PLUS loans at $20,000 annually with a $65,000 lifetime limit, eliminates GRAD Plus loans for new borrowers, and restricts graduate-level loans. Howard University has already unenrolled 500 students due to these financial constraints and offered voluntary separation packages to 600 faculty members, reflecting how HBCUs with smaller endowments are disproportionately affected.

Who is affected

Shelby Brown, a fifth-year biology major at Howard University facing a $20,000 balance
500 Howard University students who were unenrolled in July due to inability to meet tuition payment deadlines
600 eligible Howard University faculty members offered voluntary separation packages
Parent PLUS loan borrowers, particularly 29% who borrow above new limits (especially non-Pell Grant eligible families)
26% of graduate borrowers who take out amounts exceeding new annual limits
Students at HBCUs and other minority-serving institutions whose enrollees often borrow above OBBA limits
First-generation college students and their families
Low-income families making less than $30,000 annually (16% borrow more than $20,000)
Higher-income parent borrowers making more than $130,000 annually (nearly half take out more than $20,000)
District of Columbia high school graduates, including the Class of 2027
Foster youth transitioning into undergraduate life
Adult students in D.C. who earned their diploma within the last 15 years

What action is being taken

Howard University is working to re-enroll some of the 500 students who were unenrolled
Howard University has allowed Shelby Brown to move on campus while awaiting FAFSA processing
The Office of the State Superintendent of Education (OSSE) is receiving DCTAG applications through August 21
OSSE is working with partners to help students and families understand how to access financial aid and knock down barriers to post-secondary education
Patrice Lancaster and the Pursue Foundation are planning to work with Class of 2027 students at two District schools to help them identify and apply for scholarships by Christmas break
Skania Florestal is using HBCUMADE app to encourage HBCU alumni financial support and networking
District students are participating in career and technical education (CTE) programs, dual enrollment, and Advanced Placement/International Baccalaureate exams

Why it matters

This legislation matters because it creates substantial barriers to higher education access, particularly for students at under-resourced institutions and from lower-income families. HBCUs are disproportionately affected because they have approximately $150,000 less per student in endowment funds than predominantly white institutions and rely more heavily on Parent PLUS loans, creating a domino effect that threatens enrollment, faculty retention, and institutional resources. The borrowing caps jeopardize the educational aspirations of first-generation college students like Shelby Brown and could prevent students from pursuing graduate and professional degrees in fields like medicine and law. The policy exacerbates existing educational inequities and threatens the financial stability of institutions that serve minority students, potentially limiting upward mobility for Black students and families who depend on federal loans to access higher education.

What's next

Shelby Brown is waiting for Howard University's financial aid office to process and verify her FAFSA application submitted in early June to determine if she qualifies for the full Parent PLUS Loan amount
Brown will complete her last semester this fall before considering whether a public health master's and medical degree are possible under OBBBA
Patrice Lancaster plans to work with staff to set goals and benchmarks so Class of 2027 students identify two or three scholarships and complete applications by Christmas break
The DCTAG application portal will close on August 21
Students will need to eventually obtain at least an associate's or bachelor's degree to advance in the D.C. region job market, according to workforce predictions

Read full article from source: The Washington Informer