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On July 4, 2025, the One Big Beautiful Bill Act (OB3) was signed into law, resulting in changes to federal student loan programs. While there are no changes to federal student loans for the 2025-26 academic year, there are significant changes effective July 1, 2026.
Important Disclaimer: The information contained on this page is provided by Brenau’s financial aid staff to provide awareness of the impending changes to the federal loan programs. The information is based on our current understanding, it is not official guidance and should not be regarded as definitive.
Brenau will continue to update this webpage as the Department of Education (DoE) releases more information.
We are here to help you with any questions or concerns you may have! If you would like to speak with a financial aid counselor, please call us at 770-534-6152 or email us at financialaid@brenau.edu.
What we Know as of December 2025
- There are no changes to financial aid for the 2025-26 academic year as a result of OB3.
- Students starting graduate school before July 1, 2026, may still be eligible for Grad PLUS under the current rules.
Grad PLUS Loans
- Grad PLUS loans will be phased out beginning July 1, 2026. As of this date, new Grad PLUS loans will not be available to new borrowers.
- Legacy Provision: If a borrower has a Graduate PLUS loan before July 1, 2026, while enrolled in a program of study, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less.
New Graduate Unsubsidized Direct Loan Limits (effective July 1, 2026)
- Up to $20,500/year, $100,000 lifetime borrowing limit.
- Legacy Provision: If a borrower has a Direct Unsubsidized Loan made before July 1, 2026, while enrolled in a program of study, the current loan limits continue to apply for 3 academic years or the remainder of their expected time to credential, whichever is less.
Undergraduate Limits and Parent PLUS Loans
- There are no changes to the undergraduate annual or aggregate loan limits, however, all undergraduate loans will count toward the new lifetime limits.
- Starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a lifetime limit of $65,000 per dependent student.
- Legacy Provision: If a borrower has a Parent PLUS loan made before July 1, 2026, while the dependent student is enrolled in a program of study, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
What Remains Unclear
Grad PLUS Loans for Existing Borrowers
- It is uncertain, but the current indication is that a student who borrows any Direct Loan or Grad PLUS loan before July 1, 2026, will remain eligible to borrow a Grad PLUS loan for the legacy provision timeframe as long as that student remains in the same program at the same school for which the student borrowed the pre-July 1, 2026 loan.
- Awaiting further guidance from DoE
Loan Proration for Part-Time Students
- Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled.
- This could mean that part-time graduate students enrolled less than full-time would only be eligible for a portion of the annual loan limit.
- Awaiting clarification from DoE on how this will be applied to both graduate and undergraduate students.