U.S. Department of Education to Implement Major Federal Student Loan Changes in 2026, Including Elimination of Grad PLUS Loans and New Repayment Plans

The U.S. Department of Education intends to propose regulations to implement significant changes to federal student loans as part of the "One Big Beautiful Bill Act." These changes, effective July 1, 2026, include the elimination of Graduate PLUS Loans for new borrowers, new annual and lifetime loan caps for graduate/professional students and Parent PLUS borrowers, and the phasing out of most income-driven repayment plans (SAVE, PAYE, ICR) in favor of a modified standard plan and a new Repayment Assistance Plan (RAP).