Federal Student Aid Changes from the One Big Beautiful Bill Act Affecting Professional Students
Graduate PLUS Loan Program - Effective July 1, 2026
Eliminates the Graduate PLUS loan program effective July 1, 2026, for new borrowers.
Legacy Provision: If a borrower has a Graduate PLUS loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.
Professional Annual & Aggregate Loan Limits - Effective July 1, 2026
Caps the annual loan limits at $50,000* for professional students. The aggregate limit is capped at $200,000* for professional students and does not include amounts borrowed as an undergraduate. (Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total (for graduate and professional school.)
Legacy Provision: If a borrower has a Direct Unsubsidized Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.
* Current loan limits for medical students are:
– Annual: $47,167
– Aggregate: $224,000 (this amount includes med school and pre-med federal student loan debt)
Federal Loan Program Lifetime Loan Limits - Effective July 1, 2026
$257,500* lifetime borrowing limit on all federal student loans, excluding borrowed Parent PLUS loan amounts (in the case of a dependent student who had Parent PLUS borrowed on their behalf for education expenses).
Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under the current loan limits for 3 academic years or the remainder of their expected time to credential, whichever is less.
* Current lifetime borrowing limit for medical student is $224,000.
Repayment Plan/New Borrowers - Effective July 1, 2026
Borrowers with new loans made on or after July 1, 2026, can be repaid using only two plans: a new standard repayment plan and the new income-based repayment plan, RAP. If a borrower with new loans made on or after July 1, 2026, does not select a plan, they will be assigned to the new standard repayment plan.
All loans must be paid under the same repayment plan, so borrowers with loans made before July 1, 2026, who take out additional loans on or after July 1, 2026, will only have RAP and the new standard repayment plan as options.
Repayment Plan/Current Borrowers - Effective July 1, 2026 & July 1, 2028
Current borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans, and may also opt in to the new RAP.
Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a different repayment plan (current IBR, current standard plans, or RAP) by July 1, 2028. If no selection is made by that date, they will be moved into RAP automatically.
Repayment Assistance Plan - Effective July 1, 2026
Creation of a new IBR plan called the Repayment Assistance Plan (RAP). If married filing separately, the spouse’s AGI and number of dependents are not included in the payment calculation. $10 minimum payment. The monthly payment is 1-10% of income based on AGI. $50 off monthly payment (base payment) per dependent. 30-year repayment period. Eliminates negative amortization. No cap on monthly payment, even if it’s higher than the standard repayment plan would be. If a borrower makes an on-time payment that reduces their principal by less than $50, ED will cover the difference, up to the amount paid.
After all current borrowers move out of all other current IDR or Standard plans, they will be sunset.
IBR Plan (Current) - Effective July 1st, 2026
Removes the requirement for borrowers to demonstrate a partial financial hardship. Retains cancellation for balances of loans repaid under IBR at 25 years.
Standard Repayment Plan - Effective July 1, 2026
Creation of a new standard plan with 4 fixed terms of 10, 15, 20, or 25 years based on the amount borrowed (or outstanding balance if in repayment)
Additional Information
For additional information and source please visit: National Association of Student Financial Aid Administrators (NASFAA).