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New federal student loan rules are creating uncertainty around financial aid, with some schools reporting delays in aid offers and disbursements just as tuition bills come due.

What happened?

The sweeping changes authorized by the One Big Beautiful Bill Act (OBBBA) took effect July 1, leaving some students and parents unsure of how much funding they will get or when they can expect to receive it.

“We are seeing lots of confusion and lots of folks that just don't know how these changes impact their family (if at all),” said Matt Carpenter, founder of College Aid Pro, a financial planning software.

Federal and private loans are generally disbursed to schools, and then to students' accounts, but some schools are late to notify students how much they're getting, and others are dealing with delays in getting the funds out.

For instance, California State University got aid documents five to six weeks later than usual, according to CalMatters. And even though the academic year began this week, University of West Florida cautioned that software issues could delay federal aid disbursements until Aug. 31.

What's the backdrop?

Families are assessing how the OBBBA's new federal borrowing limits could impact their ability to pay for college.

Even though private loans are typically a last resort, new federal loan caps mean some families will need additional funding to cover their tuition.

OBBBA implemented lifetime federal borrowing limits ($257,500 combined across undergraduate, graduate and professional study loans) and a cap on Parent PLUS loans ($20,000 per year per dependent student, with a $65,000 lifetime limit).

It also eliminated Grad PLUS loans, so new graduate borrowers can't borrow more than $20,500 a year ($100,000 in total) unless they're pursuing a “professional” degree in a field like law or medicine, where the limit will be $50,000 a year ($200,000 in total).

“The typical advice of 'borrow all the federal loans you can before considering private loans' remains mostly true,” said Travis Hornsby, CFA, CFP® and founder of Student Loan Planner, a loan consulting and financial planning company.

What to do now

With tuition already due at some schools, you need to know how much federal, state and school funding you're getting so you can calculate any funding gap.

If you're considering a private loan, there's usually no deadline to apply for them — applications are rolling. But you should start researching now because private loans generally require school certification, which can take anywhere from a week to months.

You don't need concrete numbers to apply, either — estimates of your financial need are enough to start comparing lenders. And you can always request a reduction to your loan amount later if your costs or funding change.

1. Prequalify and compare quotes from at least three private lenders. Most lenders have online processes and can show your rate within minutes. When shopping around, it's worth considering:

•   Interest rates

•   Repayment options

•   Borrower benefits (e.g. in-school deferment, forbearance, and cosigner release)

2. Consider a cosigner. If you have limited credit history, reach out to a potential cosigner for better lending terms.

And if you're still waiting to get your financial aid:

1. Contact your financial aid office. Confirm your aid status and whether additional documentation is needed.

2. Ask about fee waivers. If you can't pay because your aid is delayed, ask your institution's aid office about whether they offer a late-fee waiver or payment plan.

Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

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