Federal Student Loan System Faces Major Changes and Court Challenges Ahead of July 1 Implementation

The U.S. Department of Education released final regulations under the One Big Beautiful Bill Act, establishing new aggregate lifetime loan limits for students and restructuring repayment systems. However, a federal court temporarily blocked the Department's narrowed definition of 'professional degree' on June 24, creating uncertainty for some graduate programs. Separately, institutions gained new authority, effective July 1, 2026, to set lower, program-specific federal student loan limits.