One Big Beautiful Bill Updates

Undergraduate Programs:

• $31,000 limit for dependent students (no change)
• $57,500 limit for independent students (no change)
• Updated to Parent PLUS Loans below

Graduate Programs:

• Eligible for up to $10,250 unsubsidized loan per semester you are enrolled at least half time. Minimum half-time enrollment is considered 3 to 4 units.
• New loan limits:
  • $100,000 unsubsidized graduate/doctoral loans ONLY.
  • $257,500 lifetime loan limit that includes undergraduate, graduate/doctoral, graduate PLUS loans. Excludes Parent PLUS loans.
• Graduate PLUS loans available for a limited time to students who qualify for legacy exception.

Professional Degree Programs:

At this time, CBU has one program considered Professional which is our Clinical Psychology Doctorate (PsyD). These students have a new annual limit of $40,000 and an aggregate limit of $200,000 unsubsidized graduate/doctoral loans. Minimum half-time enrollment is required to be eligible for loans.

Lifetime Borrowing Limit:

$257,500 borrowing cap on all federal student loans, excluding borrowed Parent PLUS loan amounts and limited exceptions

Schedule of Reductions (SOR)

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.

New Borrowing Caps:

For loans borrowed on or after July 1, 2026

• $20,000 per year cap per student
• $65,000 aggregate limit per student 
• Legacy provisions for existing parents of students

Legacy Provisions

Legacy Exceptions for Current Borrowers:

Parents of currently enrolled students can bypass the new $20,000/$65,000 limits and continue borrowing under the legacy rules that allow for yearly borrowing up to the Cost of Attendance with no lifetime limit if they meet legacy criteria.

Eligibility for Legacy Borrowing:

The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled in as of June 30, 2026; AND

either the parent must have had a Parent PLUS Loan disbursed for that specific program, OR the student must have had a Direct Subsidized/Unsubsidized Loan disbursed for that same program prior to July 1, 2026.

Duration of Legacy Exception:

The lesser of:

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

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.

Moving from Legacy to the New Rules

Once a student reaches the maximum time limit and if the student has not reached the new Parent PLUS lifetime loan limit of $65,000 they may be eligible to borrow under the new PLUS Loan program which has a yearly limit of $20,000.

• To see if you are under the new $65,000 limit please log into studentaid.gov and view your prior Parent PLUS Loan amounts. 

Program Elimination:

The Graduate PLUS Loan program is officially eliminated effective July 1, 2026. Graduate students can only qualify for future Graduate PLUS loans if they meet the legacy exception status which is determined by a variety of factors including program length, borrower history, and current loan limits.

Legacy Provisions

Legacy Exception:

• $138,500 lifetime loan limit applies ONLY while qualifying for legacy exception semesters. This lifetime loan limit includes undergraduate and graduate/doctoral loans only.
• Graduate PLUS Loan borrowing is not subject to an annual or aggregate loan limit as long as the student continues to qualify under the legacy exception.
• The maximum legacy exception any student will qualify to receive is up to 6 semesters depending on their individual calculation.

 

Note: Students should be aware that the Graduate PLUS and unsubsidized loan amounts will count towards their lifetime borrowing limits of $257,500 (undergraduate, graduate/doctoral, graduate PLUS) once the student no longer is eligible for legacy exception.

Expiration of Legacy Exception:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled in as of June 30, 2026. If student withdraws then student is automatically disqualified and falls under the new loan limits and no longer eligible for Graduate PLUS loans.
• Students will be notified of how many semesters they have of qualifying for legacy exception.
• Once the number of consecutive semesters has passed, then student is no longer eligible for legacy exception.

Moving from Legacy Exception to the New Rules

• Once a student reaches the maximum time limit or has withdrawn from their program they will no longer be eligible for a Graduate PLUS Loan AND the new loan limits go into effect:

New loan limits:

• $100,000 unsubsidized graduate/doctoral loans ONLY.
• $257,500 lifetime loan limit that includes undergraduate, graduate/doctoral, graduate PLUS loans. Excludes Parent PLUS loans.

 

Note: If a student has borrowed beyond the $100,000 unsubsidized graduate/doctoral loans lifetime limit or $257,500 which includes undergraduate, graduate/doctoral, graduate PLUS then they will no longer qualify for federal aid.

For Future Borrowers (New Loans on/after July 1, 2026):

The Tiered Standard Plan:

• Replaces the traditional standard plan for new loans. Monthly payments are determined by a fixed timeline based on your total accumulated debt:
  • Less than $25,000: 10-year repayment term
  • $25,000 to $49,999: 15-year repayment term
  • $50,000 to $99,999: 20-year repayment term
  • $100,000 or more: 25-year repayment term

Repayment Assistance Plan (RAP):

This is the new income-driven plan. It features loan forgiveness after 30 years (360 payments), waives unpaid interest, matches principal payments up to $50/month, and monthly payments are based on total adjusted gross income.

• Please Note: Parent PLUS borrowers cannot use the RAP plan under any circumstances.

For Current Borrowers (No New Loans after June 30, 2026):

Fixed-Payment Plans

Current borrowers retain access to traditional Standard (10-year), Graduated, Extended, and Income-Based Repayment (IBR) plans.

Income-Based Repayment (IBR):

Retains its dual-track structure:

• Old IBR (Loans before July 2014): 15% of discretionary income; 25-year forgiveness.
• New IBR (Loans on/after July 2014): 10% of discretionary income; 20-year forgiveness.
• Monthly payments remain capped at what the 10-year Standard payment would have been when entering the plan.
  

Sunset of SAVE, PAYE, and ICR:

The law officially sunsets the PAYE and ICR tracks. Borrowers currently utilizing ICR or PAYE must proactively switch to another eligible plan before July 1, 2028, or they will automatically be transitioned into RAP (or into IBR for specific legacy Parent PLUS consolidations). 

Limits on Deferments and Forbearance

For new loans originating after July 1, 2027, traditional Economic Hardship and Unemployment Deferments will terminate. Additionally, operational forbearances will be restricted to a maximum cap of 9 months within any rolling 24-month window.

• Are undergraduate student borrowing limits changing?

  • No. The One Big Beautiful Bill Act makes no alterations to annual or aggregate loan maximums for undergraduate dependent or independent students.

• Can I still apply for a Graduate PLUS Loan?

  • Only if you explicitly qualify for the limited legacy exception by having continuous enrollment and a matching prior loan disbursement from before July 1, 2026. New graduate students entering higher education after June 30, 2026, cannot apply. See Loans: Graduate Program sub-heading on this page for more details.

• What happens if I fail to select a plan when entering repayment?

  • If your loans are eligible for income-driven tracks, you will automatically be assigned to the Repayment Assistance Plan (RAP). If your loans are ineligible for RAP (such as certain Parent PLUS frameworks), you will defaulted into Income-Based Repayment (IBR).

 

Read the Bill

Learn About Current IDR Plans

Interest on SAVE Announcement

 

The information provided on this page reflects our current financial aid operational understanding and interpretation of the federal One Big Beautiful Bill Act based on the Department of Education's Reimagining and Improving Student Education (RISE) regulatory publications.

Because the Department of Education continues to issue rolling guidance, these interpretations remain subject to change. 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.