Changes to Federal Student Loans from 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, 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.

• Undergraduate students may be eligible for up to $20,000 per year in Parent PLUS Loans, with a $65,000 aggregate limit. Students who previously received a Federal Direct Loan or a Parent PLUS Loan, in their current degree type at Emory, may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their expected time to completion for their program, whichever is less.

• Graduate PLUS Loans have been eliminated for new borrowers. Existing Emory borrowers may retain eligibility for up to three academic years or the remainder of their expected time to completion for their program, whichever is less.

• Graduate students may be eligible for up to $20,500 per year in Direct Unsubsidized Loans, with an aggregate limit of $100,000. Existing Emory borrowers may be eligible to continue borrowing under current limits for up to three academic years or the remainder of their expected time to completion for their program, whichever is less.

• Professional students may be eligible for up to $50,000 per year in Direct Unsubsidized Loans, with an aggregate limit of $200,000.

• Starting with the 2026-2027 aid year, annual federal loan limits must be reduced for students enrolled in a less-than-full-time status.

• Sets the lifetime borrowing limit on all federal student loans, excluding Graduate PLUS and 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.

• Students who, prior to July 1, 2026, are enrolled in, and have borrowed federal loans for, a program of study at Emory University may be eligible to continue borrowing under existing loan limits and policies. Students who change their program of study, or who cease to be enrolled, will lose eligibility for legacy borrowing provisions and will be subject to the limits enacted by the OBBB legislation.