Sweeping Federal Student Loan Changes from 'One Big Beautiful Bill Act' to Take Effect July 2026

The 'One Big Beautiful Bill Act' (OBBBA), signed into law in July 2025, will bring significant changes to the federal student loan system starting July 1, 2026. These changes include tightening borrowing limits, eliminating Grad PLUS loans for most new graduate and professional student borrowers, capping Parent PLUS loans for new borrowers, and prorating Federal Direct Loan eligibility based on a student's enrollment level beginning Fall Semester 2026.