The One Big Beautiful Bill Act (H.R. 1), signed into law on July 4, 2025, introduces major changes to federal student loan programs. These changes will directly affect graduate, professional, and Parent PLUS borrowers beginning July 1, 2026.
We are actively reviewing the legislation and working with the U.S. Department of Education and the National Association of Student Financial Aid Administrators (NASFAA) to fully understand how these changes will be implemented. This page will be updated as new guidance becomes available.
Starting July 1, 2026, the following updates will apply to new federal student loans:
Grad PLUS loans will be discontinued for students borrowing for the first time after this date.
New annual and lifetime loan limits will apply to graduate and professional students
Loan amounts will be prorated based on enrollment intensity (for example, half-time students may borrow half the annual limit).
A $257,000 lifetime borrowing cap will apply to all federal student loans cobmined, excluding Parent PLUS loans.
| Student Type | Annual Limit | Lifetime Limit |
|---|---|---|
| Graduate students (Master's, Ph.D.) | $20,500 | $100,000 |
| Professional students (Medical, Dental, Law, Pharmacy, PT, etc.) | $50,000 | $200,000 |
| Parent PLUS (per dependent undergraduate) | $20,000 | $65,000 |
Note: The total aggregate borrowing cap for all federal student loans (excluding Parent PLUS) will be $257,500 beginning July 1, 2026.
Current graduate and professional students who received a Grad PLUS loan on or before June 30, 2026 may continue borrowing under existing rules:
Until they complete their current academic program, or
For up to three additional academic years, whichever comes first.
If you plan to begin a graduate or professional program in Fall 2026 or later, your federal borrowing options will be more limited than current policies allow. You may need to explore additional funding sources — such as scholarships, assistantships, work-study, or private loans — if your cost of attendance exceeds the new limits.
For parents, the new Parent PLUS borrowing caps may affect how much you can borrow for dependent undergraduate students.
UVU Financial Aid & Scholarships is here to help you understand how these changes may affect your funding options. We’ll continue to update this page as the U.S. Department of Education releases implementation guidance.
If you have questions, please contact our office to discuss how the One Big Beautiful Bill Act may impact your financial aid plans.
