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.
UC Davis is continuing to track all of these changes and plans to update this site as more clarification from the 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.
Learn how the OBBB Act is shaping the future of student borrowing. To find out more about how OBBB affects you, please select one of the options below.
Table of Content
Summary
- Application DeadlineJuly 1, 2026
- Value$200,000
- Study LevelMasters
- SponsorOBBB
Subscribe for Scholarship Alert!
Benefits
- Professional programs (e.g., medicine, law):
- 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.
Requirements
- Definitions and eligibility for higher borrowing caps available to students in “professional” programs are to be determined by the Department of Education (ED), including how dual degree students will be treated.
- However, the definition remains vague, with phrases like “not limited to” and “generally requires licensure.” In the months ahead, ED will need to confirm which programs qualify for the higher $50,000/year and $200,000/lifetime borrowing cap.
- 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.
Check also:
Fairleigh Dickinson Scholarships for International Students 2026
Application Deadline
July 1, 2026How To Apply
We understand these changes may create uncertainty as you plan for future years. 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.
We are here to help you. Please reach out to us if you have any questions.
For more details, visit federal student loan Webpage
