One Big Beautiful Bill Act (OBBBA)
High Point University > Office of Student Financial Planning > One Big Beautiful Bill Act (OBBBA)

On July 4, 2025, the President enacted the final version of the One Big Beautiful Bill Act (OBBBA) (H.R. 1) (“BBB”). We are diligently assessing the implications of this legislation and are anticipating further directives from the U.S. Department of Education on various matters. Although it is premature to identify all potential impacts, the University remains committed to understanding how this legislation will influence students, especially concerning the new restrictions on graduate and parent borrowing. The alterations affecting financial aid are set to take effect on July 1, 2026, unless otherwise specified. The updates provided below are informed by the latest sessions from the Reimagining Innovative Student Engagement Committee (RISE) negotiated rulemaking.

 

Undergraduate Students
Policy AreaFinal Measure
Pell Grant EligibilityMaintained the traditional 12-credit requirement per semester.
Continued support for part-time students.
Ineligibility for funding if the cost of attendance is already covered by other non-federal grants.
Max Pell GrantThe funding amount remains unchanged.
Parent PLUS Loan Limits*Funding of $20,000 per academic year, with a lifetime limit of $65,000 per dependent student.
Student Loan ProrationBorrowers enrolled in fewer than 12 credit hours will have access to a prorated maximum loan offer based on their enrolled hours.
Repayment PlansIntroduced a new and streamlined Repayment Assistance Plan (RAP) with rates ranging from 1% to 10% of discretionary income.
Discontinued the SAVE plan.
Extended the loan forgiveness period to 30 years.
Established minimum monthly payments.
All loans must be repaid under the same plan. Borrowers who take out loans before and after July 1, 2026, will be restricted to the Standard or RAP repayment plans.
Those who do not take out new loans after July 1, 2026, will be eligible to enroll in the existing Standard, Graduated, Extended, or current Income Based Repayment (IBR) plans, and may also choose to opt into the new RAP.

*Should a student or parent borrower have obtained a Federal Direct Loan before July 1, 2026, during the time the dependent student is enrolled in a program of study, the parent is permitted to borrow under the previous loan limits for a duration of up to three academic years or for the remainder of the dependent student’s anticipated time to credential, whichever duration is shorter.

 

Graduate/Professional Students
Policy AreaFinal Measure
Student Loan LimitsThe borrowing limit for graduates is set at $20,500 for the academic year, with a lifetime maximum of $100,000.
For professional students, the limit is $50,000 per academic year, extending to a lifetime maximum of $200,000.*
Student Loan ProrationBorrowers who are enrolled less than full-time (at least 9.0 hours, regardless of thesis or dissertation hours) will receive an adjusted maximum unsubsidized loan based on their enrollment status.
Graduate PLUS LoansThis provision will be eliminated for individuals commencing their academic programs on or after July 1, 2026.**
Public Service Loan Forgiveness (PSLF)The provision allowing medical and dental internships or residencies to count toward Public Service Loan Forgiveness (PSLF) has been retained.
Repayment PlansIntroduced a new and streamlined Repayment Assistance Plan (RAP) with rates ranging from 1% to 10% of discretionary income.
Discontinued the SAVE plan.
Extended the loan forgiveness period to 30 years.
Established minimum monthly payments.
All loans must be repaid under the same plan. Borrowers who take out loans before and after July 1, 2026, will be restricted to the Standard or RAP repayment plans.
Those who do not take out new loans after July 1, 2026, will be eligible to enroll in the existing Standard, Graduated, Extended, or current Income Based Repayment (IBR) plans, and may also choose to opt into the new RAP.
Borrowing CapNew lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Graduate or Parent PLUS loans) borrowed for all levels of study.

*The bill currently classifies professional students as those pursuing degrees in Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div. or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).

**Current graduate and professional students are permitted to complete their existing programs under the previous loan limits and will have access to Graduate PLUS loans until the conclusion of their academic programs or a maximum of three academic years, whichever comes first. For the purpose of this definition, current borrowers are those who have utilized at least one Graduate PLUS or Direct Unsubsidized loan before July 1, 2026, and who will continue in the same academic program thereafter.

 

2026-27 & Beyond Student Loan Borrowing Limits

Beginning July 1, 2026, the expected time for a student to earn their credential in a program will be determined by the following:

  • Three academic years, as outlined in 34 CFR 668.3; or
  • The difference between the total length of the program in which the student is enrolled and the duration of the coursework they have completed by the time of assessment.

All information provided below is provisional and subject to change based on the final regulatory text released by the Department of Education.