Federal Aid Updates
Congress passed the One Big Beautiful Bill Act (OBBBA) in July 2025, which introduced several changes to federal student aid beginning July 1, 2026.
To help you stay informed, we have outlined what we currently know about the legislation. Please keep in mind that details and timelines may continue to evolve. We will monitor developments and share pertinent updates on this website as they become available.
These changes do not affect student borrowing for the current academic year (2025–2026). Current borrowers can continue borrowing under current rules for up to three more academic years or until their program ends, as long as they stay in the same program.
What's Changing for 2026–2027?
| Type of Loan Program | Changes for 2026–2027 |
|---|---|
The Federal Graduate PLUS Loan program has been eliminated for new borrowers. Students starting graduate school before July 1, 2026, may still be eligible for Grad PLUS under current rules. Specific guidance on this transition is expected but not yet available. | |
The Federal Graduate and Professional Direct Unsubsidized Loan program will have new borrowing limits:
| |
The Federal Parent PLUS Loan program will have new borrowing limits:
| |
The Federal Undergraduate Direct Loan program remains unchanged, although undergraduate loans will count towards the new lifetime limits. | |
The PSLF program remains unchanged, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action. | |
Repayment plans will consolidate into the new Standard Repayment Plan (10–25 years), and Repayment Assistance Plan (RAP), replacing all other income-driven repayment plans. Current borrowers can use existing income-driven repayment (IDR) plans until July 1, 2028, after which loans will move to the new Repayment Assistance Plan (RAP) if no action is taken. If you have existing Parent PLUS loans and want income-driven repayment (IDR) options, you must consolidate into a Direct Consolidation Loan before July 1, 2026. |
Frequently Asked Questions
Under the grandfathering rule, students who borrowed any federal student loan before July 1, 2026 and who remain enrolled in the same academic program through June 30, 2026 may be able to continue borrowing under the current, generally higher loan limits for the remainder of their program—subject to certain restrictions.
To qualify, you must have taken out a Federal Direct Loan (Subsidized, Unsubsidized, or PLUS) for your current program before July 1, 2026. This grandfathered eligibility typically lasts for up to three additional academic years or until you complete your degree, whichever occurs first. It is also limited by the standard length of your program minus the time you have already completed.
Federal guidance for dual-degree programs is still pending. For specific questions about your situation, please contact your financial aid counselor.
If you have not yet borrowed through the Federal Direct Loan Program for your current program and expect to need federal loans that exceed the new borrowing limits in future years, you may want to consider whether borrowing before July 1, 2026 aligns with your academic timeline and financial needs. Doing so may allow you to access the current, higher borrowing limits, rather than being limited by the new caps.
For new borrowers, the Parent PLUS Loan will be limited to $20,000 per year and $65,000 total per dependent student. If your student's education costs exceed these limits, you may need to explore alternative financing options.
If you already have a Federal Direct Parent PLUS Loan disbursed before July 1, 2026, you may be eligible to continue borrowing under the existing rules for up to three more academic years, or until your child completes their program—whichever comes first. We will share more information as the Department of Education releases additional guidance.
Visit studentaid.gov for more information, including the One Big Beautiful Bill Act Updates page for the latest.
Additional Resources
For additional resources published by Federal Student Aid (FSA) and national associations, please visit:
Disclaimer
The information contained on this page is provided by Boston College to orient students to the changing landscape of federal student loan programs. While it is based on our good-faith understanding of the evolving federal standards, students should refer to federal governmental sources for official guidance. For more information, please visit studentaid.gov and review additional resources below.