The One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025, contained several provisions impacting federal student loans. These updates are highlighted below. Additional details will be added to this site in the coming months. Unless otherwise noted, these changes will be effective July 1, 2026.
- Parents of undergraduate students may be eligible for up to $20,000 per year in Federal Direct Parent PLUS Loans, with a $65,000 aggregate limit. Parents who previously received a Federal Direct Parent PLUS Loan may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their program, whichever is less.
- Annual loan amounts must be prorated for students enrolled in a less-than-half-time status. An effective date for this provision has not yet been determined.
- Sets the lifetime borrowing limit on all federal student loans, excluding Federal Direct Parent PLUS Loans received as a student, to $257,500 ($57,500 as an undergraduate student).
- Several changes were made to loan repayment options, including the creation of a new standard repayment plan and a new income-based repayment plan (RAP). Several existing plans will be eliminated on July 1, 2028. For more information, please visit studentaid.gov.