Federal Student Aid System to See Major Changes, Including New Loan Limits and SAVE Program Phase-Out

Significant reforms to the federal student financial aid system are set to begin on July 1, 2026, under the "One Big Beautiful Bill Act." These changes include the discontinuation of the SAVE program, impacting millions of borrowers, and the introduction of new annual and total loan limits for graduate and Parent PLUS loans. While the legislation also expands Pell Grant eligibility for short-term training, critics are concerned about potential impacts on accessibility for low-income students.