Major Federal Student Loan Changes, Including New Repayment Plans and Loan Limits, Now in Effect

Significant changes to federal student aid programs, enacted by the 'One Big Beautiful Bill Act,' became effective July 1, 2026. These reforms include new borrowing limits, revised eligibility requirements, and a streamlined set of repayment options, primarily the Repayment Assistance Plan (RAP) and the Tiered Standard Plan. Notably, Graduate PLUS loans have been eliminated for new borrowers, and Parent PLUS loans now have new annual and aggregate limits.