Federal Student Loan Program to Undergo Major Reforms in July 2026

Significant changes to federal student loan programs are scheduled to take effect on July 1, 2026, stemming from the 'One Big Beautiful Bill Act.' These reforms include reduced borrowing limits for graduate, professional, and Parent PLUS loans. Additionally, Grad PLUS loans will be eliminated for new borrowers, and the number of income-driven repayment plans will be streamlined to two. Existing borrowers may retain current terms if they secure a federal loan before the implementation date.