Financial Aid

One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant changes to federal student loan programs. Beginning July 1, 2026, the legislation will implement lifetime borrowing limits, eliminate Graduate PLUS loans, set new borrowing limits for Parent PLUS loans, and replace all existing income-driven repayment (IDR) plans with a new program known as the “Repayment Assistance Plan” (RAP).

• When do the new loan limits take effect?

  The new limits apply to periods of enrollment that begin on or after July 1, 2026.

• Who is considered a “new borrower”?

  You are considered a new borrower if your first federal direct loan (including Parent PLUS Loan) is disbursed on or after July 1, 2026.

• Who is considered a “continuing (legacy) borrower”?

  You may be considered a continuing (legacy) borrower if:

  • You received a federal student loan before July 1, 2026, and
  • You remain continuously enrolled in the same program of study at the same institution. Undergraduate borrowers may change majors and still be considered a legacy borrower as long as they do not change their degree type.

  Legacy borrowers may be able to continue borrowing under previous limits for up to 3 academic years or until completion of the program of study, whichever is less. Health Professions students also have legacy provisions for the increased direct unsubsidized limits.

• How are Parent PLUS Loans changing?

  For new Parent PLUS Loan borrowers who borrow their first Parent PLUS Loan on or after July 1, 2026:

  • The annual borrowing limit is $20,000 per student from all Parent PLUS Loans received. For example, if one parent borrows $20,000 in Parent PLUS Loan funds for a student, the student cannot receive additional Parent PLUS Loan fund from another parent.
  • The lifetime borrowing limit is $65,000 per student.
• What’s changing for graduate students?

  For new graduate borrowers:

  • The Graduate PLUS Loan program is no longer available.
  • Graduate students may borrow Direct Unsubsidized Loans only, up to:
    • $20,500 per year
    • $100,000 total for graduate study
• Is there a lifetime limit on federal student loans now?

  Yes. There is a new lifetime federal student loan limit of $257,500.
  This total includes:

  • Undergraduate loans
  • Graduate loans
  • Professional student loans

  Parent PLUS Loans are not included in this lifetime student cap.

• What if I’m enrolled less than full-time?

  Beginning July 1, 2026, federal loan eligibility may be reduced based on enrollment. This applies to all undergraduate, graduate, and professional student Direct Loan borrowers—Direct Subsidized Loans, Direct Unsubsidized Loans, and graduate PLUS Loans. This includes students borrowing under the pre-July 1, 2026, legacy provisions (limited exceptions) and new borrowers on or after July 1, 2026. Loan disbursements will be adjusted based on the number of credit hours enrolled as compared to the number of credit hours considered full-time for that student’s program. For example, if an undergraduate student is enrolled in 6 credit hours for a semester, and 12 credit hours is considered full-time for that student’s program of study, they would receive 50% of their loan disbursement for that semester.

• What should I do if federal loans don’t cover all my costs?

  If you reach federal loan limits, you may want to:

  • Review of your personal budget
  • Consider the University’s payment plan options
  • Explore private educational loans

  Our financial aid office can help you understand your options so that you can make an informed decision.

• Who can I contact with questions?

  If you have questions about how these changes affect you, please contact the Financial Aid office. We are here to help you understand your eligibility and provide options for upcoming terms.