One Big Beautiful Bill Updates - Effective Fall 2026

In 2025, new federal legislation was passed, which will make changes to certain federal student aid programs starting July 1, 2026.

Revisions to the Federal Student Loans based on the One Big Beautiful Bill Act

On July 4, 2025, the One Big Beautiful Bill Act was passed by Congress, impacting certain Federal Student Aid programs starting July 1, 2026.

What We Know

Loan Proration for All Borrowers

Students enrolled less than full-time will have their loans prorated in direct proportion to their enrollment percentage.

Parent PLUS Loan Borrowers

All parents (combined) may borrow up to $20,000 per year. Per dependent student and the aggregate limit will be capped at $65,000 per dependent student.

Student Loan Repayment for new and current borrowers with new loans made on or after July 1, 2026

• There will be only two repayment plans, a new standard repayment plan and the new income-based repayment plan (RAP). 
• All loans must be paid under the same repayment plan.
• If a borrower does not select a plan, they will be assigned to the new standard repayment plan. 
• New Parent PLUS Loans are not eligible for RAP.

Current borrowers with no new loans made on or after July 1, 2026

• These borrowers will be eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans, or may opt into the new (RAP).
• These borrowers may switch between, enter, or remain on existing income-driven repayment plans until July 1, 2028.

Additional Resources

National Association of Financial Aid Administrators (NASFAA)Chart; Federal Student Aid Changes from the One Big Beautiful Bill Act

https://www.nasfaa.org/uploads/documents/Federal_Student_Aid_Change_OB3.pdf

Federal Student Aid – One Big Beautiful Bill Act Updates

https://studentaid.gov/announcements-events/big-updates

Disclaimer: The content on this page is provided by Community College of Philadelphia financial aid personnel solely for informational purposes. It reflects our current interpretation of federal loan regulations but is not an official or binding statement of policy. These changes are current proposals issued by Congress. Students are urged to consult the U.S. Department of Education’s official publications and website (studentaid.gov) for definitive guidance.