Federal Student Loan Changes in 2026: Key Updates from the One Big Beautiful Bill Act

Major changes to federal student aid programs under the 'One Big Beautiful Bill Act' are taking effect, impacting how students and families finance their education. These updates include new FAFSA rules, revised Pell Grant eligibility criteria, and a streamlined student loan repayment system offering only two options: a modified standard plan and a new Repayment Assistance Plan (RAP). Additionally, Grad PLUS loans have been eliminated for new borrowers after July 1, 2026.