Federal Aid Changes: What the “One Big Beautiful Bill Act” Means for You
Signed into law on July 4, 2025, the “One Big Beautiful Bill Act” makes major updates to federal student aid. Many changes begin July 1, 2026. The Office of Financial Aid will continue updating this page as new details are released.
Key Highlights
- New federal loan limits and repayment options go into effect July 1, 2026
- Legacy provisions will protect many current borrowers from changes
- Minor changes to Pell Grant eligibility and data reviews may impact certain students
- Repayment status will be checked on a daily basis
- Standard Repayment Plan remains in place
- Repayment Assistance Plan (RAP), replacing all current income-driven repayment (IDR) plans
For Current Undergraduate Borrowers
Criteria
If you meet both criteria below, legacy provisions will apply:
- You began enrollment in a degree-seeking undergraduate program prior to June 30, 2026; and
- You have borrowed federal loans under your current degree-seeking undergraduate program. (These provisions also apply to students who transfer, if student meets criteria.)
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.
Legacy Provisions
For current borrowers who take out loans before July 1, 2026:
- Annual Direct Subsidized and Unsubsidized Loan limits remain unchanged.
- Parent PLUS borrowers remain eligible to borrow through their student’s current program of study until degree completion.
- Current Parent PLUS borrowers are not subject to the new annual or lifetime borrowing limits.
New Federal Loan Limits (Effective July 1, 2026)
| Borrower Type | Annual Limit | Aggregate Limit |
|---|---|---|
| Parent PLUS (per dependent student) | $20,000 | $65,000 |
| Graduate Students | $20,500 | $100,000 |
| Professional Students* | $50,000 |
$200,000 |
*Professional students typically refers to medical, law, and other advanced degree programs. Final definitions are pending from the U.S. Department of Education.
- All new federal student loan borrowers will have a lifetime borrowing maximum on all federal student loans of $257,500, excluding borrowed Parent PLUS Loan amounts.
- Parent PLUS Loan borrowers will be subject to new borrowing limits. All parents of undergraduate students combined will be eligible to apply up to $20,000 per academic year per student, with a lifetime maximum of $65,000 per student.
- Loan proration: Annual limits will be prorated for students enrolled less than full-time.
Effective date and implementation details pending.