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鈥�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鈥�2027?
| Type of Loan Program | Changes for 2026鈥�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鈥�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
Yes. Graduate PLUS loans will be eliminated for most students starting July 1, 2026, unless a student qualifies for a limited exception as a legacy borrower.
Yes. Parent PLUS loans will continue to be available after July 1, 2026; however, new borrowing limits and repayment rules will apply to loans taken out on or after that date. Beginning July 1, 2026, new federal borrowing limits cap the Parent PLUS Loan at $20,000 per year and $65,000 in total.
Certain graduate and professional students may be considered legacy borrowers and may retain access to Graduate PLUS Loans for a limited period following the implementation of new federal loan limits.
To qualify for the limited exception, a student must, as of June 30, 2026:
- Be enrolled in the same program of study at the same institution, and
- Have received a federal Direct Loan (Direct Unsubsidized or Graduate PLUS) for that program prior to July 1, 2026
Eligible students may continue to borrow under prior loan limits for the shorter of three academic years or the remaining length of the program, as determined by the program鈥檚 published minimum length for full-time study. Students must remain enrolled in the same program of study to retain eligibility.
The limited exception also preserves the current annual Direct Unsubsidized Loan limit of $20,500.
- Can students 鈥渓ock in鈥� the limited exception?
Possibly. Receiving a federal student loan prior to June 30, 2026, may allow a student to qualify for the limited exception. However, borrowing solely to preserve eligibility may not be a prudent financial decision. Students are encouraged to consult with Student Services 鈥� Financial Aid before borrowing.
- Can a student decline the limited exception?
No. The limited exception applies automatically to all eligible students. Students may not opt out to be subject to the new loan limits.
- What happens when the limited exception ends?
The limited exception ends after three academic years, or earlier if the student graduates, withdraws, transfers to another institution, changes programs, ceases continuous enrollment, or remains enrolled in a program beyond its published length. Once the exception ends, Graduate PLUS Loans are no longer available, and any future borrowing is subject to the new federal loan limits.
The annual Direct Unsubsidized Loan limit remains unchanged at $20,500; however, there is a new $100,000 cap on the amount students can borrow in total (aggregate) for a graduate degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Graduate or Parent PLUS loans) borrowed for all levels of study. Students who qualify for the limited exception are also exempt from the new Direct Unsubsidized aggregate and lifetime limits.
The Department of Education has utilized the following definition of professional student for federal aid purposes: A professional student must be enrolled in a program of study that awards a professional degree upon completion of the program. The professional student must not receive Title IV aid as an undergraduate student for the same period of enrollment. A professional degree signifies both completion of the academic requirements for the beginning practice in a given profession and a level of professional skill beyond what is normally required for a bachelor鈥檚 degree. A professional degree is generally at the doctoral level that requires at least six years of post-secondary education including at least two years of post-baccalaureate work.聽
There is a new, higher annual Direct Unsubsidized Loan limit of $50,000. There is also a new cap of $200,000 on the amount students can borrow in total (aggregate) for a professional degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study. Students who qualify for the limited exception are also exempt from the new Direct Unsubsidized annual, aggregate, and lifetime limits.
Starting in the 2026鈥�27 academic year, federal loan amounts will be reduced (prorated) for students who are enrolled less than full time. Because changes in enrollment status can impact loan eligibility, students should always consult Student Services before dropping classes or changing their enrollment level.
If you are considering enrolling part time or withdrawing from a course, we strongly encourage you to speak with your financial aid聽representative to fully understand how these changes may affect your loans.
What is considered full time?
- Undergraduate students: at least 12 credits
- Graduate students and Professional students: at least 9 credits*
*some programs may require higher levels of enrollment for appropriate program progression. Student enrollment should follow program guidelines.
What is considered part-time?
- Undergraduate students: fewer than 12 credits
- Graduate and Professional students: fewer than 9 credits
Students and families should review options carefully and contact their Financial Aid Representative or Credit & Collections Associate in聽Student Services聽about options such as scholarship and grants, payment plans, and/or institutional and private loans. Each option has different interest rates, repayment terms, and credit requirements.
Students who take out any new federal loan on or after July 1, 2026, will choose between two repayment plans only:
- Standard Repayment (fixed payments over 10鈥�25 years)
- Repayment Assistance Plan (RAP) (payments based on income, forgiveness after 30 years)
- Parent Borrowers are only eligible for the Tiered Standard Plan (a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s) with no cancellation or forgiveness options.
RAP also counts toward Public Service Loan Forgiveness (PSLF). All federal loans must be repaid using the same repayment plan. Students with older loans (borrowed before July 1, 2026) who take out new loans on or after that date will have to repay their loans under one of the two repayment options described above. Students who do not borrow a new federal Direct Loan on or after July 1, 2026, may continue to access current repayment options
- Students: The new Repayment Assistance Plan (RAP) qualifies for PSLF. This may be important for families whose students plan to work in nonprofit hospitals, academic medical centers or public health or government roles.
- Parents: The new tiered standard repayment plan does not count as a qualifying repayment plan for PSLF purposes. As a result, borrowing a new Parent PLUS Loan on or after July 1, 2026, prevents borrowers from receiving PSLF, even if they have already made qualifying payments, as all Parent PLUS loans must be repaid under the new tiered standard repayment plan.
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 and review additional resources below.