Loan Changes: What To Expect in 2026-27 and Beyond

The 2025 federal budget reconciliation act (also known as the One Big Beautiful Bill Act, OBBBA, OB3, H.R.1, or the Working Families Tax Cuts Act), introduced some of the most significant changes to federal aid in decades. Graduate and professional students were particularly impacted by the new rules that went into effect July 1, 2026, for the 2026-27 aid year. 

What should you be aware of? 

• New borrowing limits have been introduced beginning in 2026-27. New Direct Loan borrowers and some current borrowers who do not qualify for a temporary exception are subject to annual, aggregate, and lifetime limits. 
• The Graduate PLUS loan program has been eliminated. In some limited circumstances, current borrowers will be able to continue utilizing this program for a short time. Note that anyone can still apply for the GradPLUS on the Federal Student Aid website. A borrower may even be approved based on the credit check from that application, but that does not mean everyone is eligible to borrow the funds. Federal Student Aid has required schools to confirm borrowing eligibility. If we receive an approved GradPLUS loan from you, OFA will make the final determination on if you qualify based on the exception permitted in the law.
• Additional borrowing may be possible through private educational loans.