One Big Beautiful Bill Updates

Grad PLUS Loans

Law eliminates the Graduate PLUS program, effective July 1, 2026, with legacy provisions for current borrowers to complete their program of study.

• Legacy Provision: If a borrower has a received a direct federal loan made before July 1, 2026, while enrolled in a program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to completion, whichever is less

Key Dates

June 30, 2026: Last date to take out loans or consolidate without losing access to current repayment options

July 1, 2028: SAVE, PAYE, and ICR officially end (pending court decisions on SAVE)

New Loan Limits: 

Undergraduate Programs

• No Change ($31,000 aggregate for dependents students and $57,500 for independent students)

Parent PLUS Loans

• $20,000 per year cap per dependent student
• $65,000 aggregate limit per dependent student 
• Not currently subject to enrollement intensity proration
• Legacy provisions for existing parents of students

Graduate Programs

• $20,500 a year for graduate students
• The aggregate limit is capped at $100,000 for graduate students
  • $100,000 limit is of graduate loans only (does not include loans from undergraduate program)
  • This increases the amount a graduate student can take. The old limit for graduate students was $138,500 total (undergraduate and graduate programs). Meaning if a student took the full $57,500 as an undergraduate, they would only have $81,000 left for their graduate program
  • $100,000 is a little more than 4.5 years of loans in a graduate program
• No Graduate PLUS Loans

Lifetime Limits

• $257,500 borrowing cap on all federal student loans, excluding borrowed Parent PLUS loan amounts.
• "Legacy" Graduate PLUS Loan are inlcuded in the $275,500 limit

Legacy Provisions

A Parent PLUS Loan "Legacy" exception exists for parents of students who were already enrolled and utilizing federal aid prior to the One Big Beautiful Bill implementation.

Eligibility for Grandfathering: A parent may continue to borrow under the "legacy" rules if:

• The student remains continuously enrolled in the same program of study they were in as of June 30, 2026; AND
• The parent had a Parent PLUS Loan disbursed for that program OR the student had a Direct Loan (Subsidized or Unsubsidized) disbursed for that same program before July 1, 2026.

Legacy Loan Limits: Eligible legacy borrowers may continue to borrow up to the full Cost of Attendance (COA), minus other financial aid, rather than being restricted to the $20,000/$65,000 caps.

This exception is valid for the lesser of:

• Three (3) additional academic years; OR
• The remainder of the student's expected time to complete their current credential.

Important: If a student changes their program of study or has a break in enrollment, the legacy status is forfeited, and any future Parent PLUS borrowing will be subject to the new $20,000 and $65,000 limits.

For Future Borrowers: Anyone Taking Loans After June 30, 2026

The New Standard Plan

Applies to any new loans or consolidations after July 1, 2026. Fixed monthly payments based on your total debt:

• Less than $25,000 - 10 years
• $25,000 to $49,999 - 15 years
• $50,000 to $99,999 - 20 years
• $100,000 or more - 25 years

Income Driven Repayment Plan (IDR)

RAP (Repayment Assistance Plan) will be the only available Income Driven Repayment Plan; Parent PLUS borrowers cannot use RAP at all.

• New income-driven plan calculating payments based on percentage of total Adjusted Gross Income, not discretionary income.
• Forgiveness after 30 years (360 payments)
• Waives unpaid interest and matches principal payments up to $50/month
• Allows married borrowers to file separately to exclude spouse income

Limits on Deferments and Forbearance

• Economic Hardship and Unemployment Deferments end for new loans after July 1, 2027
• Forbearance limited to 9 months within any 24-month period for these new loans

Graduate PLUS Loans Going Away

Law eliminates the Graduate PLUS program, effective July 1, 2026, with legacy provisions for current borrowers to complete their program of study.

• If a borrower has a received a direct federal loan made before July 1, 2026, while enrolled in a program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to completion, whichever is less

New Loan Limits

For more information review Popular Topics above

Loan Proration

Institutions are required to prorate (reduce) annual loan amounts in direct proportion to the percentage of full-time status in which the student is enrolled for the undergraduate, graduate, and doctoral programs; with 12 units being considered full-time status for the undergraduate program. This applies to the Direct Subsidized Loan, Direct Unsubsidized Loan, and Graduate PLUS Loan programs. This does not apply to Parent PLUS Loan program.

The formula used to determine the adjusted annual loan limit is as follows:

Adjusted Loan Limit = (24 Units/Actual Units of Enrollment​) × Full-Time Annual Loan Limit

For more information on this calculation please visit our loan page under that Calculation of Loan Eligibility section.

 

Current Borrows: Loans Disbursed Prior to June 30, 2026

Key Dates

June 30, 2026: Last date to take out loans or consolidate without losing access to current repayment options

July 1, 2028: SAVE, PAYE, and ICR officially end (pending court decisions on SAVE)

Parent PLUS Loan "Legacy" Borrowers

Please see topic above under "Popular Topics" drop down.

Graduate PLUS Loans Going Away

To apply for a Graduate PLUS loan you must have received a direct federal loan that disbursed prior to July 1, 2026. To apply for the Grad PLUS Loan please click here.

What Happens to SAVE, PAYE, and ICR?

These plans will be repealed by July 1, 2028. Until then, you can continue to use them. You must pick a new plan before July 2028 or one will be chosen for you.

*Students currently in the SAVE program will have interest start accruing again starting August 2025 (Not in the One Big Beautiful Bill but a separate recent update)

Your Repayment Plan Options if You Have No New Loans After June 30, 2026

• IBR (Income-Based Repayment)

• • Same structure as now:

• • • Old IBR: 15 percent of discretionary income, 25-year forgiveness (for loans before July 2014)

• • • New IBR: 10 percent of discretionary income, 20-year forgiveness (for loans after July 2014)

• • Payments capped at the 10-year standard amount based on your balance at the time you enter the plan

• RAP (Repayment Assistance Plan)

• • New income-driven plan calculating payments based on percentage of total Adjusted Gross Income, not discretionary income.

• • Forgiveness after 30 years (360 payments)

• • Waives unpaid interest and matches principal payments up to $50/month.

• • Allows married borrowers to file separately to exclude spouse income.

• Standard, Graduated, and Extended Plans

• • No changes if your loans are from before July 2026.

What If You Fail to Choose a Plan?

You will be automatically placed in:

• RAP for loans eligible for RAP
• IBR if your loans are not eligible for RAP

Read the Bill

Learn About Current IDR Plans

Interest on SAVE Announcement

The information provided on this page reflects our current understanding and interpretation of recent changes to federal financial aid under the new One Big Beautiful Bill. While we strive to keep this information accurate and up-to-date, please note that we are still awaiting official guidance and interpretation from the U.S. Department of Education.

As such, some details may change as further clarification becomes available. This page is intended to serve as a general resource and should not be considered official or final. We encourage students and families to regularly check for updates and consult directly with our Financial Aid Office for the most current information regarding their specific situation.