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One Big Beautiful Bill Act (OBBBA)

one big beautiful bill act (obbba)

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, introducing significant changes to federal financial aid programs that are scheduled to take effect on July 1, 2026. While final rules and regulations have not yet been released, we are actively reviewing the legislation and will continue to share updates as additional guidance becomes available from the

U.S. Department of Education and other relevant authorities.

 

The information provided here reflects our current understanding of the law and is not official guidance. It should not be considered definitive. For official rules and regulations, please refer to federal government sources, including studentaid.gov.

 

There are no changes to federal student aid for the Fall 2025 and Spring 2026 semesters.

What We Know

 

  • Graduate PLUS loans will begin to be phased out on July 1, 2026. After that date, new Graduate PLUS loans will no longer be available to new borrowers.

  • Students who already have Graduate PLUS loans may remain eligible for limited continued borrowing while they complete their current academic programs.

  • Professional programs (e.g., medicine, law):
    • Up to $50,000/year
    • $200,000 lifetime borrowing limit.
  • Other graduate programs:
    • Up to $20,500/year
    • $100,000 lifetime borrowing limit.
  • Definitions of “professional” vs. “graduate” programs are still being clarified.

  • Students who currently borrow Unsubsidized Direct Loans may continue borrowing under the existing limits while completing their current program, or for up to three additional years, whichever comes first.

  • There are no changes to annual loan limits for undergraduate students. However, all undergraduate borrowing will now count toward new lifetime loan limits.
  • Beginning July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
  • Parent PLUS borrowers who took out loans for a student before July 1, 2026 may continue borrowing under the current limits for up to three additional years or until the student completes their program, whichever comes first.

 

Have Questions? Contact Us!

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Office of Financial Aid

Submit a Financial Aid Help Inquiry
Please contact us:

Office Hours:
  • Virtual (phone, video, and email) 
    Monday - Thursday, 10:00am to 6:00pm
    Friday: 10:00 am - 4:00pm

  • Walk-In Hours (on-campus)
    Monday - Thursday 10:00am to 6:00pm
Location:
Welcome Center
Office of Financial Aid
101 West Mount Royal Avenue
First Floor
Baltimore, MD 21201

Phone: 410.837.4763                                                       
Email: financialaid@ubalt.edu