One Big Beautiful Bill Updates

Popular Topics

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 Graduate PLUS 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 

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.

Future Borrowers

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 (Revised Affordable Payment) 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 Graduate PLUS 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

The law requires institutions to prorate (reduce) annual loan amounts in direct proportion to the percent of full-time the student is enrolled

Current Borrowers

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)

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 (Revised Affordable Payment)
    • 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

Links

Disclaimer

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.