Federal Aid Changes

Before July 1, 2026, students could borrow federal loans for as long as they were enrolled. After July 1, 2026, loan eligibility is based on how long your program is supposed to take. A two-year program gets roughly two years of borrowing – even if the student takes longer to finish.

This matters most for part-time students. Taking 9 units per term instead of 15 can stretch a two-year program into four years. The loans run out after two years either way.

Plus, new borrowers enrolled less than full time (fewer than 12 units) can only borrow in proportion to their unit load, similar to how Pell Grants already work.

Loan Type	Note	Rules Before July 1, 2026	Rules After July 1, 2026
Loan eligibility duration	Major change	Students could borrow for as long as they remained enrolled in 6 or more units and met all other criteria.	Loan eligibility tied to program length. A two-year program gets two years of loans even if you have not completed your program.
Part-time loan amounts	Major change	A part-time student could borrow the same amount as a full-time student.	Loan amounts prorated based on unit load. Half-time students get roughly half the amount.
Undergraduate loans (subsidized and unsubsidized)	Little to no change	$5,500 to $7,500 per year depending on year in school. $31,000 lifetime cap for dependent undergrads.	Annual and lifetime limits unchanged

Beginning April 26, 2026, the federal government added a new step to the Free Application for Federal Student Aid (FAFSA) process to protect students from identity fraud. From this date forward, random applications will be selected for an identity check.

Being selected for an identity check does not mean you did anything wrong on your application. The identity checks are only being added to improve security and reduce fraud.

How will the identity checks work?

If your application is selected, you will receive a request to verify your identity by completing a short (just a few minutes) live camera check on your phone or tablet from Federal Student Aid (FSA). Be prepared to show a valid government-issued ID. Most applications will not be selected for a check.

If you get a verification request, respond to it right away. Waiting can delay your financial aid. If you don’t have a phone or tablet with a camera, contact the Financial Aid Office to discuss options.

What should you do now?

If you have already submitted your 2026-2027 FAFSA, watch your email for any verification requests and respond promptly.

Short-term career training programs will eventually be eligible for Pell funding. CHC's programs still need to go through a federal approval process that takes a year or more. We will communicate when specific programs qualify. For now, the message is honest: it’s coming, stay tuned.

Short-term career training programs will eventually be eligible for Pell funding. CHC's programs still need to go through a federal approval process that takes a year or more. We will communicate when specific programs qualify. 

Pell Type	Note
Pell Eligibility	Moderate Change
		Rules before July 1. 2026:
		Available based on financial need (Student Aid index). Less-than-half-time students qualified for partial Pell.
		Rules After July 1, 2026:
		Students with non-federal aid covering full cost of attendance no longer qualify. New high-asset and foreign income exclusions.
Workforce Pell	New  Program (Not yet available at CHC)
		Rules before July 1. 2026:
		Pell could not be awarded for programs under 16 weeks.
		Rules After July 1, 2026:
		Pell available for approved workforce programs 8 to 15 weeks, 150 to 600 clock hours. Programs must meet federal completion and job placement requirements. Approval takes a year or more.

Students who were enrolled and borrowing before July 1, 2026, keep their old loan limits for up to three years, or until they finish their program, whichever comes first. This is called the legacy provision. They lose this protection if they withdraw, transfer to a different program, or stay enrolled past their program’s expected length.

Loan update: Legacy provision (interim exception)

Rules Before July 1, 2026:

Not applicable. The current rules are simply the rules.

Rules After July 1, 2026:

Students enrolled with at least one federal loan disbursed before July 1, 2026, can continue under old rules for up to 3 years or until program completion. Protection lost if student withdraws, transfers programs, or exceeds program length.

If a major for a degree or certificate program doesn’t earn more than a typical high school graduate without a degree or certificate in that field, the new federal laws may not pay aid for those majors. The federal law now benchmarks these earnings against state and national averages.