One Big Beautiful Bill Act (OB3)

On July 4, 2025, the One Big Beautiful Bill Act (OB3) was signed into law, resulting in changes to federal student aid programs. On May 1, 2026, the U.S. Department of Education published the finalized regulations.

Most changes will take effect for enrollment periods beginning on or after July 1, 2026. We are tracking changes and will update this website as additional guidance from the U.S. Department of Education becomes available. We appreciate your patience as we navigate these changes.

Students are encouraged to visit the Private Loan Guidance webpage to help navigate anticipated private loan needs including the ELM Select private lender platform.

Changes to Federal Graduate PLUS Loans effective Fall 2026

Beginning with the 2026–2027 academic year, incoming MD students and those who do not qualify for legacy provisions will no longer be eligible to borrow Federal Direct Graduate PLUS Loans.

Legacy Provision Qualifiers:

  1. Students must remain continuously enrolled in the UI COM MD program. Program changes or leave of absences exceeding 180 days in a 12-month period will affect a student’s eligibility for federal loan legacy provisions. This includes, but is not limited to, joint degree programs, medical leave, research leave, and general leave of absences.
  2. Students must have received a Direct Unsubsidized Loan or Direct Graduate PLUS Loan disbursement while enrolled as a UI COM MD student, prior to July 1, 2026. First-time professional student borrowers should accept summer loan offers, complete Entrance Counseling, and complete their Master Promissory Notes (MPN) by June 15, 2026, to allow sufficient time for loan origination and disbursement.
  3. In addition to the requirements above, eligibility for federal loan legacy provisions is determined using the standard UIC College of Medicine MD program length of 11 terms (MD/PhD students are excluded).
    ~Terms in which a student was registered either full-time or part-time will count toward the 11-term maximum.
    ~Terms during which a student was on an approved leave of absence will not count toward the 11-term maximum. Students who have not met or exceeded the 11-term maximum will retain eligibility for legacy provisions for the lesser of three academic years, or the point at which they reach the 11-term maximum or take a leave of absence that exceeds 180 days in a 12-month period. Students who have met or exceeded the 11-term maximum will not be eligible legacy provisions beginning Fall 2026. We encourage students to visit our Private Loan Guidance webpage to help navigate their private loan needs and to explore resources, including the ELM Select private lender platform.

Qualifying Current Students:

Students who qualify for legacy provisions will be eligible to receive a Direct Graduate PLUS Loan through June 30, 2029, or until they no longer qualify for the exception by ceasing continuous enrollment or meeting the 11-term maximum enrollment. No Direct PLUS Loans for graduate or professional students will be awarded starting with the 2029–30 award year.

Incoming and Non-Qualifying Current Students:

Federal aid eligibility for non-qualifying students will be dependent upon aggregate graduate and professional level borrowing.

Annual (Academic Year) Limit: $50,000
Aggregate (Lifetime) Limit: $200,000

Students who have borrowed less than $200,000 in combined Subsidized, Unsubsidized and Graduate PLUS Loans as a graduate or professional student, will be eligible to borrow up to $50,000 annually in Federal Unsubsidized Loans. You can review your current federal loan history through the Federal Student Aid website.

Students are encouraged to visit the Private Loan Guidance webpage to help navigate anticipated private loan needs including the ELM Select private lender platform.

Federal Loan Proration

Federal direct loans are required to be prorated for students enrolled less than full-time beginning with the 2026-2027 academic year. For MD students, full-time enrollment is 9+ credit hours in the fall and spring terms and 5+ credit hours in the summer term. Loan proration will occur even if a student’s tuition range & cost do not change, which may increase the need for private loans to meet students’ COA.

Changes to Federal Loan Repayment

Repayment Plans

OB3 Resources