Federal Aid Changes: What to Expect from the Reconciliation Bill – “One Big Beautiful Bill Act”
Signed into Law: July 4, 2025
The recently enacted One Big Beautiful Bill Act, OBBBA, brings significant changes to federal student aid. While we await further guidance from the U.S. Department of Education, many provisions are set to take effect starting July 1, 2026.
To help you stay informed, the Office of Graduate Financial Aid has summarized the key updates below. Please note that timelines and details may shift as implementation guidance becomes available. We remain committed to keeping you updated as new information emerges.
Key Highlights
- Graduate PLUS Loans will be eliminated for graduate students who begin their degree program starting after June 30, 2026
- New federal loan limits and repayment options go into effect July 1, 2026
- Legacy provisions will protect many current borrowers from changes
- Repayment plans will include only two options:
- Standard Repayment Plan
- Repayment Assistance Plan (RAP) - replacing all current income-driven repayment (IDR) plans
For Current Borrowers
If you meet both criteria below, legacy provisions will apply:
- You began enrollment in a degree seeking graduate program prior to June 30, 2026, and
- You have borrowed federal loans under your current degree seeking graduate program
You’ll retain access to pre-reconciliation loan limits and borrowing programs for the expected time to degree completion or three academic years, whichever is shorter.
New Federal Loan Limits (Effective July 1, 2026)
| Borrower Type | Annual Limit | Aggregate Limit |
|---|---|---|
| Graduate Students | $20,500 | $100,000 |
| Professional Students* | $50,000** |
$200,000 |
*Further clarification is expected on how “professional student” will be defined.
**Up to $50,000 depending on the students program
- Lifetime federal loan limit (Including Grad PLUS Loans but excluding Parent PLUS): $257,500
- Loan proration: Annual limits will be prorated for students enrolled less than full-time
Effective date and implementation details pending