Institutional Loan Limit Enablement

With the introduction of One Big Beautiful Bill, the Institutional Loan Limits provision enables institutions to set their own lower program-level loan limits for an academic year for both student and parent borrowers. This functionality automatically adjusts student funding in accordance with the institution-defined limits and ensures these amounts are accurately reported to COD.

To provide institutions with greater flexibility and streamline both packaging and reporting, a new configuration script will be introduced. This script will automate the determination of Direct Loan eligibility and the application of loan limits as defined by the One Big Beautiful Bill. This approach has been made configurable to enable rapid adaptation to any future updates from the Department of Education.

Setting Loan Limit via Configuration:

Since Institutional Loan Limits will be based on your own institutional policies, the ability to set the Institutional Loan Limit will be available from both the existing Awarding_Override_Criteria or new OB3_Criteria.

  • Awarding Override Criteria configuration
    • You will now have the ability to set the following values within the configuration script
      • "Institutional Limit" by using awardInfo.withInstitutionalLimit()
  • OB3 Criteria configuration
    • New OB3_Criteria configuration script will be added to existing FAS_FUND_CONFIG.csv starting with the 2026-27 Award Year, and will run on a per term basis at each repackage of Direct Loans.
      • This script will have access to the same data as Awarding_Override_Criteria and will be able to access the results of Awarding_Override_Criteria script
    • Additionally, you will be able to set the following values within the configuration script
      • "Institutional Limit" by using awardInfo.withInstitutionalLimit()

UI Improvements:

Several enhancements to the user interface  have been made to streamline compliance and improve visibility into loan packaging:

  • Fund Eligibility UI (View Only)
    • Navigation: Packaging > Fund Eligibility > Direct Loan
    • Within the Fund Eligibility popup, users with "Fund Eligibility Viewer" have a comprehensive overview of the Direct Loan proration and eligibility details, including:
      • New Institutional Limit Applied (by Academic Year):
        • Displays the "Institutional Limit" set within the configuration.
    • All fields in this section are read-only, enabling you to view updates by packaging version to easily track changes.
  • Add/Edit Functionality (Editable Fields)
    • Navigation: Packaging > Add/Edit > Direct Loan
    • Within the Add/Edit popup, users with "Package Fund Edit" can make manual adjustments to key data for Direct Loans:
      • New editable field for Institutional Limit Applied
        • Available for all Direct Loan types: Users can adjust the Institutional Limit Applied for each Academic Year.
        • Value Range: Accepts decimal amount, and can be left blank.
        • Defaulting: If not specifically edited and saved, the system will automatically default to the value set in configuration if available..
        • Scope: Editing is available for both term-based and non-term programs.
        • Validation: Invalid entries will trigger clear validation errors to prompt user correction before submission.
    • Editing the Institutional Limit value does not automatically adjust the calculated award amount; instead, it updates the value submitted to COD. If a manual adjustment is made to Institutional Limit Applied, users are responsible for also adjusting the resulting fund amount as needed to ensure consistency.

Institutional Limit Reporting to COD:

The Institutional Limit value will be transmitted to COD as boolean value reported in the new <InstitutionalLimitApplied> field within the disbursement block for each applicable Direct Loan.

  • The value sent to COD will reflect whether an amount for Institutional Limit was set in either in configuration or on the Packaging UI.. 
    • If an amount is set, <InstitutionalLimitApplied> will be sent as true, otherwise it will be sent as false.

Reporting Improvements:

The resulting "Institutional Limit" is available through reporting and extract views.

The resulting "Institutional Limit" is available through reporting and extract views.

This enhancement enables institutions to efficiently enforce custom loan limits and automate reporting, increasing compliance, accuracy, and administrative efficiency.

Here's the demo of these capabilities:

Steps to enable and configure

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Student Financial Aid

  • Update Configuration Scripts:
    • To get started, ensure that "Configuration Administration" Permission is enabled and download your existing configuration from Oracle Student Financial Aid within Administration > Configuration Administration > Download.
    • This configuration will include the pre-populated system data and include the new column, which you can then update as needed.
      • Update FAS_FUND_CONFIG.cvs to add logic to either the Awarding_Override_Criteria or OB3_Criteria to apply and set your Institutional Loan Limit based on the specific programs and fund types are affected.
        • If you are already using a configuration approach to handle these students as outlined One Big Beautiful Bill (OB3) - Institutional Loan Limits, update FAS_FUND_CONFIG.cvs to also set the "Institutional Limit" by using awardInfo.withInstitutionalLimit() so that the correct value is transmitted to COD.
    • Navigate to Administration > Configuration Administration, and upload your zipped configuration
  • Repackage Students:
    • After successful testing in non production, you will need to load in your updated configuration to production, then repackage your students that are in programs with an Institutional Limit to adjust their funding as needed.
      • Divide your bulk repackaging operation into manageable groups, taking into consideration processing windows, communication needs, and the availability of supporting resources. This approach will ensure you are well-equipped to assist students whose inquiries arise as a result of the repackaging process.
  • Submission to COD:
    • When you are ready to begin awarding and originating Direct Loans for the 2026-27 Award Year, follow the steps to enable within 2026-2027 Award Year Packaging Updates and 2026-2027 Award Year COD File Updates.

Tips and considerations

  • Logic Customization Needed: Institutions wishing to apply custom loan limits will need to define the specific logic for which programs and fund types are affected, as this is institution-specific and no baseline configuration is delivered.
  • Awarding Override Criteria and OB3 Criteria Defaults: If is not configured, the system will not apply an institutional limit or report the value to COD.
  • Migrating from Interim Configuration Approach: If you are already using a configuration approach to handle these students as outlined One Big Beautiful Bill (OB3) - Graduate and Professional Loan Limits, please also update the configuration to set the "Institutional Limit" to ensure correct reporting to COD.

Key resources