Upcoming Changes to Graduate Federal Student Loans under the One Big Beautiful Bill Act
The One Big Beautiful Bill Act (OBBB), passed by Congress on July 3, 2025, and signed into law on July 4, 2025, includes several significant changes to federal student loan programs. Below is a summary of the key provisions affecting graduate students. Unless otherwise noted, these changes will take effect on July 1, 2026.
Key Changes to Federal Student Loan Programs
Elimination of Graduate PLUS Loans
- Graduate PLUS Loans will no longer be available to new borrowers starting July 1, 2026.
- Existing SCU graduate students may retain eligibility for up to three additional academic years or until the completion of their current program, whichever comes first.
Direct Unsubsidized Loan Limits for Graduate Students
- Graduate students may borrow up to $20,500 per year, with a lifetime aggregate limit of $100,000.
- Existing SCU borrowers may be eligible to continue borrowing under the current limits for up to three academic years or until they complete their program, whichever comes first.
Lifetime Federal Student Loan Limit
- A new lifetime cap sets the total amount a student may borrow across all federal student loan programs (excluding Parent PLUS Loans) at $257,500, which includes up to $57,500 borrowed at the undergraduate level.
Additional Upcoming Provisions (Placeholder for Future Updates)
- Interest Rates: Details on new fixed or variable interest rates for graduate loans will be announced.
- Repayment Plans: Changes to repayment options, including potential new income-driven repayment plans for graduate loans.
- Loan Forgiveness: Updates on eligibility criteria for loan forgiveness programs under OBBB.
How to Stay Updated
We will continue to update this page with the latest information and guidance as the Department of Education releases more details about the implementation of the One Big Beautiful Bill Act.
You can also visit https://studentaid.gov/announcements-events/big-updates for official updates.