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 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.

• 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 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 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.

• 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 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.