Changes in Student Loans and Financial Aid beginning July 1, 2026
Information from Columbia University Financial Aid website and other colleges.
Congress passed the One Big Beautiful Bill Act (OBBBA) in July 2025, which introduced several changes to federal student loans beginning July 1, 2026. These changes do not affect student borrowing for the current academic year (2025–2026). Students who have already borrowed federal loans for their current academic program may be considered a “continuing borrower” and therefore grandfathered in if enrolled in the same academic program through June 30, 2026. The information below is intended to help you understand how these changes may apply to you.
Upcoming Changes to Federal Student Loan Limits
The following are new borrowing limits under the Federal Direct Loan Program, effective July 1, 2026:
- Graduate programs: Limited to $20,500 per year or $100,000 for the degree.
- Professional programs: Limited to $50,000 per year or $200,000 for the degree. The Department of Education is still finalizing the definition of “Professional” but is expected to include only M.D., J.D., and D.D.S. programs at Columbia.
- Undergraduate programs: Student borrowing remains unchanged, but Parent PLUS Loans will be capped at $20,000 per year and $65,000 for the degree.
Federal Loan Options
Federal student loans are government-funded loans designed to help students pay for post-secondary education, featuring fixed interest rates, flexible repayment options, and no credit check requirements for most borrowers.
Key benefits include income-driven repayment plans, loan forgiveness options, a 6-month grace period post-graduation, and interest subsidies for eligible students.
Additional Resources
For additional resources published by Federal Student Aid (FSA) and national associations, please visit:
