OBBBA Student Loan FAQs

No. Annual and lifetime Direct Loan limits for undergraduates are staying the same. Your limit depends on your year in school and whether you’re considered a dependent or independent student.

You’re likely a dependent student if you’re under 24, unmarried, not a veteran, and have no legal dependents or extenuating circumstances. You may qualify as independent if you’re 24 or older, married, a veteran or active-duty military member, an orphan or former foster youth, have legal dependents other than a spouse, or meet other circumstances defined by federal financial aid rules.

 

 

Your lifetime undergraduate limit is $31,000. Up to $23,000 of that can be subsidized loans, which don’t build interest while you’re in school.

 

Your lifetime undergraduate limit is $57,500. Up to $23,000 of that can be subsidized loans.

Yes. The OBBBA sets a new $257,500 lifetime limit on federal Direct Loan borrowing. That covers your entire education, including undergraduate, graduate, and professional programs. If you think a master’s degree, law school, medical school, or another program could be in your future, plan for those costs now, not just this year’s tuition.

Starting July 1, 2026, graduate students can borrow up to $20,500 per year, with a $100,000 aggregate limit. Undergraduate loans don’t count toward the $100,000 graduate limit. They do count toward the $257,500 lifetime limit.

The OBBBA eliminated the Graduate PLUS Loan program for new graduate borrowers beginning July 1, 2026. New graduate students borrowing federal loans after that date are subject to the new limits. If you were already enrolled and borrowing before July 1, see the Interim Exception question below.

Professional students can borrow up to $50,000 per year, with a $200,000 aggregate limit. Your graduate borrowing counts toward that $200,000, but your undergraduate loans don’t.

For example, if you borrowed $50,000 for graduate school, you’d have $150,000 left to borrow for your professional program ($200,000 minus $50,000). The $257,500 lifetime limit still applies.

Check with your school on how it defines an academic year. Some follow the calendar and others count back-to-back terms, which affects your annual limit.

The federal definition of a professional degree is part of ongoing litigation. While a court stay is in place, the Department of Education is using an interim list that includes:

• Law

• Medicine

• Dentistry

• Veterinary Medicine

• Pharmacy

• Optometry

• Physical Therapy

• Occupational Therapy

• Physician Associate/Assistant

• Athletic Training

• Audiology

• Speech-Language Pathology

• Several psychology programs, and others

This list may change as the litigation continues. Don’t assume your program qualifies just because it’s graduate-level or feels like a “professional” career. Check the current list and confirm with your school’s financial aid office before making a big borrowing decision.

Starting July 1, 2026, parents can borrow up to $20,000 per year, with a $65,000 aggregate limit. These limits apply per student, not per parent.

For example, if one of Johnny’s parents borrows $15,000 and the other borrows $50,000, they’ve reached the $65,000 Parent PLUS limit for Johnny. Neither parent can take out more Parent PLUS Loans for his education.

A court order ended the SAVE plan in March 2026. Borrowers on SAVE must choose a new repayment plan within 90 days of July 1, 2026. The Department of Education or your loan servicer will share your next steps and options.

You can generally stay on PAYE until July 1, 2028. Before then, choose a new repayment plan from the options available to you. If you don’t choose, the Department of Education will automatically enroll you in a plan you’re eligible for.

ICR is also ending. You can generally stay on it until July 1, 2028, then you’ll need to choose another plan. If you don’t choose, the Department of Education will automatically enroll you in an eligible plan.

Not for everyone. If your loans were first disbursed before July 1, 2026, you may be able to stay on or enroll in IBR. Borrowers with loans disbursed on or after July 1, 2026 generally won’t have access to IBR, and RAP becomes their income-driven option. Taking out new loans could change which plans are available to you.

If all your loans were first disbursed before July 1, 2026, you may be able to use or stay on these plans:

• Standard Repayment: fixed monthly payments, generally paid off in 10 years

• Graduated Repayment: payments start lower and increase over time

• Extended Repayment: more time to repay, with fixed or graduated payments

If you have at least one Direct Loan disbursed on or after July 1, 2026, these plans generally aren’t available for those loans. Your options are RAP or the Tiered Standard Repayment Plan. Sources: StudentAid.gov, NASFAA

It depends mostly on when you borrowed, or plan to borrow. Most borrowers fall into one of three groups: you’re not taking out new loans after July 1, 2026; you’re taking out loans on or after July 1, 2026; or you have loans from before July 1, 2026 and need to borrow more to finish school. People in that third group may qualify for an Interim Exception.

It’s for borrowers who were already working toward a degree when the new rules took effect and need more loans to finish. If you qualify, you may continue under the rules that applied to your earlier borrowing.

Undergraduate students and Parent PLUS borrowers may qualify if they meet all three requirements:

• The student was enrolled in a program of study at a school as of June 30, 2026.

• The student received at least one Direct Loan, or the parent received a Direct PLUS Loan, for that program before July 1, 2026.

• The student continues at the same school, pursuing the same credential, after July 1, 2026.

A break in enrollment can disqualify you unless it’s an approved leave of absence. You can change your major as long as you stay at the same degree level. Moving to a new credential level, like associate to bachelor’s or bachelor’s to graduate, doesn’t qualify.

Graduate and professional students may qualify if they meet all three requirements:

• They were enrolled in their program as of June 30, 2026.

• They received at least one Direct Loan for that program before July 1, 2026.

• They’re still enrolled at the same school, in the same program, pursuing the same credential, and haven’t stopped enrolling at any point on or after July 1, 2026. An approved leave of absence doesn’t count as a break.

Not sure you qualify? Your school’s financial aid office can walk you through how the exception applies to your enrollment and borrowing history. Source: StudentAid.gov

If you still have a gap after federal aid and other resources, a private student loan may help. Private student loans come from banks, credit unions and other private lenders. Interest rates, fees, eligibility, and repayment options vary by lender.

You may need to meet credit requirements or have a cosigner to qualify. A cosigner agrees to share responsibility for the loan, and if you don’t make your payments, they’re legally responsible for making them. Compare your options carefully and think about how the monthly payment fits into your overall financial plan.

Explore student loan options.