Changes to Federal Student Loans in 2026

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Changes to Federal Student Loans in 2026
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Enacted in July 2025, the One Big Beautiful Bill Act (OBBB) made significant changes in federal student loan programs as a part of the shifts in fiscal policy. While there are no changes to federal student loans for the 2025–26 academic year, changes resulting from the legislation are slated for July 1, 2026.

Roosevelt University is continuing to track all of these changes and plans to update this site as more clarification from the U.S. Department of Education is released. In the meantime, please note:

There are no changes to financial aid for the 2025–26 academic year, stemming from this legislation.
Students starting graduate school before July 1, 2026, may still be eligible for Graduate PLUS Loans under current rules. Specific guidance on this transition is expected but not yet available.

Important disclaimer: The information contained on this page is provided under a good faith understanding of the evolving federal standards; it is not official guidance and should not be regarded by students as definitive. Students should refer to federal governmental sources for official guidance. See studentaid.gov for more information.

To find out more about how OBBB affects you, please select one of the options below.

Graduate students

What we know

Graduate PLUS loans

Graduate PLUS loans will be eliminated for new borrowers beginning on July 1, 2026; beginning on that date, new loans will not be available for new borrowers.
There will be some continuing eligibility for existing Graduate PLUS borrowers as they complete their current programs.
For information on private loans to assist with education costs, please review the "How to Prepare" section below.

New graduate unsubsidized direct loan limits (effective July 1, 2026)

Professional programs (e.g., pharmacy, PsyD):
- Annual limit: Increased to $50,000
- Aggregate limit: Capped at $200,000 (includes loans borrowed as an undergraduate)
Other graduate programs:
- Annual limit: Remains $20,500
- Aggregate limit: Capped at $100,000 (includes loans borrowed as an undergraduate)
Existing Unsubsidized loan borrowers can access unsubsidized loans under the current limits until completing their current program or for three additional years, whichever is less.

Legacy provision

You may continue to borrow under the current rules (including Graduate PLUS Loans up to the Cost of Attendance) for up to three additional years if you meet BOTH of the following criteria:

You are enrolled in the degree level (i.e. Masters) in 2026–27 that you were enrolled in prior to July 1, 2026.
You borrowed a federal student loan (Subsidized, Unsubsidized, or Graduate PLUS) for that specific program before July 1, 2026.

If you change programs or start a new degree after July 1, 2026, you will be subject to the new limits.

Parents of dependent undergraduate students

What we know

Undergraduate Limits and Parent PLUS Loans

There are no changes for undergraduate loans, although undergraduate loans will count towards the new lifetime limits.
However, starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits for 3 more years or until the student’s program ends.

Legacy Provision for Parents of Currently Enrolled Students

Parents may continue to borrow under the current rules (up to the full Cost of Attendance) for up to three additional years if:

The student they are borrowing for is enrolled in the degree level (i.e. Bachelors) they were attending prior to July 1, 2026.
The parent borrowed a Parent PLUS loan for that student before July 1, 2026.

All Students

Loan proration for part-time students

The bill includes a provision to prorate loan amounts based on enrollment.
This could mean that part-time graduate students (e.g., those enrolled less than full-time) would only be eligible for a portion of the annual loan limit.
We are awaiting clarification from ED on how this will be applied to both graduate and undergraduate students.

How to prepare

Here are steps you can take now

Check your loan history: Log in to StudentAid.gov to view your current total loan balance.
Understand your status: Determine if you will likely qualify for the Legacy Provision. If you are currently enrolled and have borrowed federal loans, you generally will.
Plan for the gap: If you anticipate your costs will exceed the new federal limits (especially for new graduate students or parents), begin researching private student loan options or preparing personal savings.

Selecting a Private Loan

You should compare the loan terms and conditions and choose the one that best fits your
situation. Students are encouraged to compare loan offers from multiple lenders to get the best
terms available to them as interest rates and fees may vary. You can compare private loans from
multiple lenders using either of the following options:

ElmSelect displays a neutral list (in random order) of private lenders that Roosevelt students have
borrowed during the previous aid year.
Credible enables students and parents to compare unbiased, personalized and prequalified rates
with no hidden fees and no impact on their credit.

The use of a lender listed on ELM Select or Credible is not required. Roosevelt will process loans
from any eligible lender the student chooses and may not deny or otherwise impede the
borrower's choice of a lender or cause unnecessary delay in loan certification for those borrowers
who choose a lender not listed on ELM Select or Credible.

We are here to help you. Please reach out to us if you have any questions.

Repayment

Public Service Loan Forgiveness (PSLF)

No changes to PSLF provisions, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action.

New repayment plans

For new loans disbursed after July 1, 2026, the bill eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
Students who have borrowed loans before July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans for the new loan.
RAP borrowers will not be locked into a 30-year plan. They can switch to a standard plan, which ranges from 10 to 25 years.
Borrowers with no new loans made on or after July 1, 2026, can continue to be eligible to enroll in the current Standard, current Income Based (IBR), Graduated, and Extended repayment plans, and could also opt in to the new RAP. Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP.
More information on the new RAP is forthcoming.

Additional resources

For additional resources published by Federal Student Aid (FSA), please visit:

One Big Beautiful Bill Act Updates (Federal Student Aid)
Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act (GEN-25-04)

Questions about this page?

Office of Financial Aid

fas@roosevelt.edu

866-421-0935

Responsible Department

Office of Financial Aid