The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, makes significant changes to federal student loans.

These FAQs are designed to help you understand what is changing, when the changes take effect, and what they mean for you as a student borrower.

Key Highlights

• Graduate students who begin their degree programs after June 30, 2026, will no longer be eligible for Graduate PLUS loans.
  

• Legacy provisions will protect many current borrowers from changes. (See Current Student FAQs below).
  

• New Direct Unsubsidized loan limits go into effect July 1, 2026.
  • Graduate students: annual loan limit is $20,500 with an aggregate limit of $100,000.
  • Professional students: annual loan limit will be $50,000 with an aggregate limit of $200,000

• Annual loan limits will be adjusted for students enrolled less than full-time.
  

• Parent PLUS loans will be capped at $20,000 per year and a $65,000 aggregate limit per dependent student.
  

• Repayment plans will include only two options:
  • Standard Repayment Plan.
  • Repayment Assistance Plan (RAP) - replacing all current income-driven repayment (IDR) plans.

The information below reflects the most current guidance available but is subject to change. This page will be updated as additional guidance becomes available.