Impact of the “One Big Beautiful Bill Act” on Federal Student Aid Programs
The “One Big Beautiful Bill Act” was signed into law on July 4, 2025. This reconciled bill institutes significant modifications to federal student aid programs. Many changes are slated to begin July 1, 2026. The AUWCL Financial Aid Office will continue updating this page as new details are released.
Overview
- New federal loan limits and repayment options to go into effect July 1, 2026
- Legacy provisions may protect current borrowers from changes
- Repayment status will be checked daily
- Standard Repayment Plan remains unchanged
- Repayment Assistance Plan (RAP), replacing all current income-driven repayment (IDR) plans
Potential Impact for Current J.D., LL.M, MLS, and SJD Borrowers
If currently enrolled students meet both criteria below, legacy provisions may be applicable:
- Began enrollment in a J.D., LL.M, MLS, or SJD program prior to June 30, 2026; and
- Have federal loans disburse by June 30, 2026, under the student’s current program.
Legacy Provisions
Pre-reconciliation loan limits and borrowing programs for the expected time to degree completion or three academic years—whichever is shorter.
For current borrowers who take out loans before July 1, 2026:
- Annual Direct Unsubsidized Loan limits remain unchanged.
- Direct Grad PLUS borrowers remain eligible to borrow through their current program of study until degree completion, with no change to annual or aggregate limits.
Federal Loan Limits by Borrower Type Effective July 1, 2026
- All new federal student loan borrowers will have a lifetime borrowing maximum on all federal student loans of $257,500, excluding borrowed Grad PLUS Loan amounts.
- Direct Unsubsidized Loan borrowers will be subject to new borrowing limits.
- J.D. students may be eligible to receive up to $50,000 per academic year, with a lifetime maximum of $200,000.
- LL.M, MLS, and SJD students may be eligible to receive up to $20,500 per academic year, with a lifetime maximum of $100,000.
- Direct PLUS Loan is not available.
- Loan proration: Annual limits will be prorated for students enrolled less than full-time.