What We Know As of December 2025
- Annual and aggregate loan limits will not change for undergraduate students. The aggregate limit for dependent undergraduate students is $31,000, and for independent undergraduate students, $57,500.
- Graduate students can borrow up to $20,500 in unsubsidized loan funds annually, with an aggregate borrowing limit of $100,000, excluding undergraduate loan borrowing. Existing borrowers can access unsubsidized loans under current limits until they complete their current degree, or for three additional years, whichever is shorter.
- The lifetime loan borrowing limit at all loan levels will be $257,500, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged. This amount excludes PLUS Loans.
- Parent PLUS Loan borrowers may borrow up to $20,000 annually, with an aggregate borrowing limit of $65,000 per dependent student, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged.
- The new limits apply to enrollment periods beginning on or after July 1, 2026.
- The Graduate PLUS loan program will be eliminated effective July 1, 2026; on that date, new loans will no longer be available to new borrowers.
- There will be some continuing eligibility for existing Grad PLUS borrowers as they complete their current degree.
- Current indications are that a student who borrows any Direct Loan or Grad PLUS before July 1, 2026, will remain eligible to borrow a Grad PLUS loan for the 鈥3-year or until program completion鈥 window, so long as that student remains in the same program at the same school for which they borrowed the pre-July 1, 2026 loan.
- Beginning July 1, 2026, Parent PLUS Loan borrowers may borrow up to $20,000 annually, with an aggregate borrowing limit of $65,000 per dependent student, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged.
- Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits for three more years or until the student's current degree ends.
- A student who changes majors within the same degree will be consider
- The bill includes a provision to prorate the annual loan limit amounts based on enrollment.
- Full-time enrollment status for undergraduates is twelve or more credit hours, and for graduate students, it is nine or more credit hours. Department definitions may vary.
- Based on the proposed changes, students enrolled below the full-time enrollment definitions, including part-time graduate students (e.g., those enrolled less than full-time), would be eligible for only a portion of the annual loan limit.
- We are awaiting clarification from ED on how this will be applied to both graduate and undergraduate students.
- There are no changes to PSLF provisions, although new eligibility limitations have been proposed separately from the OBBB in other regulatory action.
- The bill eliminates the current Income-Driven Repayment (IDR) plans (IBR, ICR, PAYE, and SAVE) and replaces them with a new Repayment Assistance Program (RAP).
- Borrowers with no new loans made on or after July 1, 2026, can continue to be eligible to enroll in the current Standard, Graduated,
Extended, ICR, PAYE, and IBR repayment plans. Borrowers may opt in to the new RAP or new tiered standard plans once available.- Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP. Borrowers may switch between, enter, or remain on existing IDR plans until July 1, 2028. Only Income-Based Repayment (IBR) will stay of the current IDR plans
- Borrowers with new loans disbursed on/after July 1, 2026, will have only two repayment options: the Standard 10-25 fixed repayment plan (Tiered Standard) or the Repayment Assistance Program (RAP). All loans must be paid under the same repayment plan.
- Parent PLUS loans can only be repaid under the tiered Standard plan.
- As of July 1, 2028, the SAVE, ICR, and PAYE plans will be eliminated.
- More information on updates to repayment plans is forthcoming.