Most all of the provisions go into effect beginning with the 2026-27 school year (i.e., as of 07/01/2026, and applicable for enrollment beginning with the Fall 2026 semester and beyond),although some of the loan repayment provisions have an earlier effective date.

1. Annual Borrowing Limits (Subsidized and Unsubsidized loans): 
   • Undergraduate Students:  No Change (Subsidized and Unsubsidized) 
   • Graduate Students:    No Change (Unsubsidized) 
   • Professional Students:  Increased annual limit (Unsubsidized) 
2. Aggregate Borrowing Limits (Subsidized and Unsubsidized loans):  
   • Undergraduate Students:  No Change (Subsidized and Unsubsidized)
   • Graduate Students: Reduced aggregate limit, but will exclude from aggregate any amounts borrowed at the undergraduate level
   • Professional Students:  Increased aggregate limit, and will exclude from aggregate any amounts borrowed at the undergraduate level 
3. Lifetime Borrowing Limit (Subsidized, Unsubsidized, and GradPLUS loans): 
   • All students:  New lifetime borrowing limit across all federal student loan programs (Subsidized, Unsubsidized, and GradPLUS) but excludes ParentPLUS borrowing that occurred on the student’s behalf. 
4. ParentPLUS loan limits (loan program for parent(s) of dependent undergraduate students) 
   • New annual cap of $20,000 per dependent student (combined across all parents borrowing that year for the dependent student; previously no limit other than Title IV Cost of Attendance minus all other aid offered/received)
   • New aggregate limit of $65,000 per dependent student (combined across all parents borrowing ParentPLUS for the student); previously no aggregate limit  
5. GradPLUS loan program eliminated
   • See separate entry below for more information.
6. Reduction to Annual Loan Amounts when Enrolled Less-Than-Full-Time
   • When enrolled less than full-time, your federal student loan is subject to reduction. For more detailed information on this issue, please see the Loan Reductions When Enrolled Less Than Full-Time information page.

1. The loss of GradPLUS is significant. However, for students in Professional degree programs, the Reconciliation Bill expanded annual Unsubsidized loan borrowing limits from $20,500 to $50,000—an additional $29,500 per year.
2. Graduate students’ annual Unsubsidized loan borrowing limits remain the same at $20,500.
3. For graduate and professional students who need additional options or strategies beyond any federal/state financial aid program eligibility, the following are provided for consideration
   • Search for available/eligible departmental and external scholarships in ScholarshipU.
   • Investigate whether private/alternative student loan programs may help meet funding needs.
   • Consider using a payment plan, which can allow a student to make multiple payments of their balance due (or a portion of their balance due) across a fixed period of time; see the entry for Payment Plans at the U's Office of the Bursar payment options site.

*Only graduate and professional students are eligible for GradPLUS; undergraduates are ineligible

For students who need additional options or strategies beyond any federal/state financial aid program eligibility, the following are provided for consideration:

• Search for available/eligible departmental and external scholarships in ScholarshipU.
• Investigate whether private/alternative student loan programs may help meet funding needs.
• Consider using a payment plan, which can allow a student to make multiple payments of their balance due (or a portion of their balance due) across a fixed period of time; see the entry for Payment Plans at the U’s Office of the Bursar payment options site. 

Please see this chart comparing current rules (if any) compared to the OB3 changes. Keep in mind that some details are still emerging and evolving. The final regulationswere published on May 1, 2026. Implementing guidance from the U.S. Department of Education continues to emerge and develop, and that guidance has, at times, been inconsistent or has changed. In addition, there is at least one pending court case challenging a portion of the regulations, so be aware the rules may continue to shift. We will continue to update the chart with as much definitive information as we are able.