Federal Student Loan Programs to See Major Revisions in July

Significant changes to federal student loan programs, stemming from the One Big Beautiful Bill Act, are set to take effect on July 1, 2026. These modifications include the elimination of Graduate PLUS Loans for new borrowers, new caps on Parent PLUS loans, and prorated eligibility for part-time students. A new Repayment Assistance Plan will also replace existing income-driven options for new loans disbursed after this date. Universities are holding information sessions to inform students about these upcoming policy shifts.