Major Federal Student Loan Reforms Set for 2026-2027 Academic Year

Significant federal student loan changes, enacted by the 'One Big Beautiful Bill Act,' will begin in the 2026-2027 academic year. New FAFSA rules will exclude family farms and small businesses from asset calculations. Borrowers will face new annual and lifetime caps, the elimination of Grad PLUS loans for new applicants, and a reduction to two repayment plan options, phasing out most existing income-driven plans. These reforms will substantially alter financial aid access and repayment strategies for future students.