What is OBBBA?

The One Big Beautiful Bill Act (OBBBA) was signed into law and goes into effect July 1, 2026. This legislation changes how students and their families obtain federal financial aid.  We are here to help guide you through these changes.

Information below reflects the most current guidance available and may change as federal rules are established. We will update this website as we receive more guidance.

Overview

Undergraduate Loan Eligibility

• Undergraduate Federal Direct Student Loan limits are not changing. Borrowers of undergraduate subsidized and unsubsidized loans will not see any changes to annual or lifetime loan limits under the OBBBA. 
• New limits on Parent PLUS loans for new borrowers beginning July 1, 2026: Annual loan limit is $20,000 with an aggregate limit of $65,000 per dependent student.

Graduate and Professional Loan Eligibility

• Graduate Federal Direct PLUS Loans have been eliminated for students who begin their degree programs on or after July 1, 2026.
• New limits on Federal Direct Unsubsidized Loans beginning July 1, 2026:
  • Graduate students: Annual loan limit of $20,500 with a lifetime limit of $100,000.
  • Professional students: Annual loan limit of $50,000 with a lifetime limit of $200,000 including borrowing as a graduate student. This only includes students in the DePaul College of Law Juris Doctorate (JD) program.

Additional Changes

• Legacy provisions cover many current borrowers who have received federal loans prior to July 1, 2026. Pausing your studies like taking a leave of absence or changing to a different degree program will affect current students. See FAQs below for more information.
• Part-Time Students now have prorated annual limits. Under the OBBBA, the borrowing limit is reduced for students enrolled in a program of study on less than a full-time basis during an academic year. Additionally, your enrollment status each term, along with the credit hours you attempt and complete, will influence the loan amount you are eligible for and may be adjusted for both your current and future terms.
• Loan Repayment is now limited to two options: The Standard Repayment Plan and the Repayment Assistance Plan (RAP) are available, with RAP set to replace all income-driven repayment (IDR) plans by July 1, 2028. See FAQs below for more information.