Federal Aid Changes

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and finalized regulations were posted May 1, 2026. The legislation reshapes federal student aid, including significant changes to graduate and professional loan programs. Most provisions take effect for periods of enrollment beginning on or after July 1, 2026. This page summarizes what is changing, when, and what it means for current and future borrowers.

The Direct Grad PLUS Loan is eliminated for students who have not had a Direct Unsubsidized or Grad PLUS loan disbursed for their current program before July 1, 2026. A new maximum lifetime limit of $257,500 applies across all federal Subsidized, Unsubsidized and Grad PLUS loans combined, excluding Parent PLUS loans. Legacy provisions let many current borrowers continue under existing limits for a limited time.

Lifetime limits include all Subsidized and Unsubsidized loans borrowed at the graduate or professional grade level.

To be treated as a legacy borrower you must be enrolled in a Logan degree program during the Summer 2026 trimester, have received at least one Direct Unsubsidized or Grad PLUS disbursement before July 1, 2026, and remain continuously enrolled in that same program without withdrawing or taking a leave of absence.

Legacy borrowers may continue under their original federal loan programs for up to three additional academic years, or until their Expected Time to Credential, whichever comes first. Changing degree programs or transferring schools ends legacy status.

Expected Time to Credential. For DC students, beginning July 1, 2026, it is the lesser of three years or ten total trimesters minus trimesters already completed as of July 1, 2026. For EdD and MS students it is generally one year, or three trimesters; students already enrolled longer transition to the new limits after July 1, 2026.

Students enrolled less than full time have loans prorated by credit hours, and must be at least half time in degree-seeking coursework to keep federal loan eligibility.

Students who borrow a new federal Direct Loan on or after July 1, 2026 will have two repayment plans available:

• Tiered Standard Repayment — fixed monthly payments over a 10- to 25-year term based on the amount borrowed
• Repayment Assistance Plan (RAP) — income-based monthly payments, forgiveness after 30 years, and eligibility for Public Service Loan Forgiveness

As of July 1, 2027, economic hardship and unemployment deferments end; forbearance remains, limited to 9-month increments within any 24-month period. Borrowers whose loans all predate July 1, 2026 may stay on Standard, IBR, Graduated or Extended plans or opt into the new options. Borrowers on ICR, PAYE or SAVE must move to Standard, IBR, Graduated, Extended or RAP by July 1, 2028.

For a parent taking a federal Direct PLUS Loan on or after July 1, 2026, all parents combined may borrow $20,000 per year per dependent student, with a $65,000 aggregate limit per dependent student.

Federal Student Aid publishes the official loan program updates, and FastChoice compares private loan options if federal limits fall short. The Logan Financial Aid team can walk through your loan eligibility and borrowing plan. Reach them at financialaid@logan.edu or 877-408-6956.