Major Federal Student Loan Program Changes, Including Borrowing Caps and New Repayment Plans, Set for July 1 Implementation

Significant changes to federal student loan programs, enacted through the One Big Beautiful Bill Act, are set to take effect on July 1, 2026. These include the phasing out of Grad PLUS loans for new borrowers, new caps on Parent PLUS loans, and a restructuring of repayment options, with a federal court temporarily blocking a small piece of the plan but the U.S. Education Department confirming the loan limits will proceed.