One Big Beautiful Bill Act (OBBBA)
One Big Beautiful Bill Act (OBBBA) Updates
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, resulting in a significant change to federal student aid programs. Most changes are effective after July 1, 2026. Note: Many currently enrolled, continuing students will fall under a legacy provision which provides a limited exception to many of the new laws.
Who is subject to the new law?
New undergraduate, graduate, transfer, part time, and students who do not meet the legacy provision will be subject to the changes made under the One Big Beautiful Bill Act.
Who is considered a legacy student?
To be considered for a legacy provision, a student must:
- Be enrolled in a program of study at RMU before July 1, 2026.
- Remain continuously enrolled in that same program.
- Have received at least one prior disbursement of a Federal Direct loan prior to July 1, 2026.
- Not have exceeded the expected time to credential (program completion).
Below are highlights of the new law:
Learn more about the full list of changes from Federal Student Aid
| Topic | OBBBA Change | Legacy Exception Applicable? |
|---|---|---|
| Parent PLUS Loan Limits | Parents (combined) may borrow $20,000 per year, per dependent student. The lifetime limit is $65,000, per dependent student. | Yes |
| Loan adjustments when less than full time | Institutions must prorate annual Federal Direct loan amounts in direct proportion to the percent of full-time status the student is enrolled. | No |
| Graduate PLUS Loan | Elimination of the program. | Yes |
| Graduate Lifetime Borrowing Limit | Lifetime aggregate will be capped at $100,000, not including undergraduate borrowing. | Yes |
| Federal Lifetime Loan Limit | New lifetime federal loan limit of $257,500 for all Federal Direct student loans borrowed for all levels of study. | Yes |
| New Loan Repayment Plan | Creation of a new income-driven repayment plan called the Repayment Assistance Plan (RAP), other plans will be phased out. | No |