One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) was signed into US law in July 2025. This has made significant changes in the federal student loan programmes as a part of the shifts in fiscal policy. While there are no changes to federal student loans for the 2025–26 academic year, changes resulting from the legislation are due to be implements from July 1, 2026.  

We are continuing to track all of these changes and plan to update this site as more clarification from the US Department of Education is released. In the meantime, please note:

• There are no changes to financial aid for the 2025–26 academic year, stemming from this legislation.
• Students starting a postgraduate programme before July 1, 2026, may still be eligible for Grad PLUS under current rules. Specific guidance on this transition is expected but not yet available.

We're here to help. If you have questions or would like to speak with a financial aid staff member at the University of Aberdeen, please email usaloans@abdn.ac.uk

Important disclaimer: The information contained on this page is provided by University of Aberdeen financial aid staff to orient students to the changing landscape of federal student loan programmes. While it is based on our good faith understanding of the evolving federal standards, it is not official guidance and should not be regarded by students as definitive. Students should refer to federal governmental sources for official guidance. See studentaid.gov (new window) for more information.

What We Know As of March 2026

Grad PLUS Loans

• Grad PLUS loans will be phased out beginning on July 1, 2026; beginning on that date, new Grad PLUS loans will not be available for new borrowers or those on new programmes.
• There will be some continuing eligibility for existing Grad PLUS borrowers as they complete their current programmes. 
• If you are a current postgraduate research student and have not taken Grad PLUS loans in 2025/2026, you may wish to borrow a small amount to allow for your continued eligibility.  The guidance is not yet clear if those on current PGR programmes but not borrowing Grad PLUS loans will be eligible for them at a later date.

New Graduate Unsubsidized Direct Loan Limits (effective July 1, 2026)

• Graduate Programmes:
  • Up to $20,500/ year, $100,000 lifetime borrowing limit.
• There has been additional information released regarding "Professional programmes" however, none of the programmes at the University of Aberdeen currently meet this classification by the US Department of Education.
• Existing unsubsidized loan borrowers can access unsubsidized loans under the current limits until completing their current program or for three additional years, whichever is less.

Undergraduate Limits and Parent PLUS Loans

• There are no changes to undergraduate level subsidized and unsubsidized loans, although they will count towards the new lifetime limits.
• However, starting July 01, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Existing Parent PLUS borrowers who have borrowed for their students before July 01, 2026, can continue with the current limits for 3 more years or until the student's programme ends (whichever is earlier).
• It is currently unclear if students who have repeated a period of study, have taken a break from their studies, or if they transfer programmes will remain under the old regulations. We will update this information as soon as we have clarification. 

Public Service Loan Forgiveness (PSLF)

• No changes to PSLF provisions, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action.

What Remains Unclear

Grad PLUS Loans for Existing Borrowers

• It’s uncertain, but the current indication is 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 “3-year or until program completion” 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.
• Awaiting further guidance from ED.

Loan Proration for those studying less than 60 credits per semester

• The bill includes a provision to prorate loan amounts based on enrolment.
• This could mean that students with unbalanced credit loads (i.e. 75/45 credits) or a reduced credit load if they have taken additional credits in a previous year, may only be eligible for a portion of the annual loan limit in the semester with less than 60 credits.
• We are awaiting clarification from ED on how this will be applied if, under university regulations, the student is still classified as a full-time student.

New Repayment Plans

• For new loans disbursed after July 1, 2026, the bill eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
• Students who have borrowed loans before July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans for the new loan.
• RAP borrowers will not be locked into a 30-year plan. They can switch to a standard plan, which ranges from 10 to 25 years.
• Borrowers with no new loans made on or after July 1, 2026, can continue to be eligible to enrol in the current Standard, current Income Based (IBR), Graduated, and Extended repayment plans, and could also opt in to the new RAP. 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.
• More information on the new RAP is forthcoming.