One Big Beautiful Bill Act (OBBBA)

Admissions & Financial Aid

One Big Beautiful Bill Act (OBBBA)

Changes to Financial Aid beginning July 1, 2026

Enacted in July 2025, the One Big Beautiful Bill Act (OBBBA) made significant changes in federal student loan programs as a part of the shifts in fiscal policy. While there are no changes to federal student loans for the 2025–26 academic year, changes resulting from the legislation are slated for July 1, 2026. 

Assumption University is continuing to track all of these changes and plans to update this site as more clarification from the Federal Department of Education (ED) is released. In the meantime, please note:

  • There are no changes to financial aid for the 2025–26 academic year, stemming from this legislation.
  • Students starting graduate school before July 1, 2026, may still be eligible for Grad PLUS under current rules.
  • We’re here to help! If you have questions or would like to speak with a financial aid staff member, please contact us:

Assumption University Office of Student Financial Services

Phone:                (508) 767-7158

Email:                 sfs@assumption.edu

Important disclaimer: The information contained on this page is provided by Assumption University’s Office of Student Financial Services to educate students and parents to the changing landscape of federal student loan programs.  While it is based on our good faith understanding of the evolving federal standards, it is not official guidance and should not be regarded by students and parents as definitive. Students should refer to federal governmental sources for official guidance. See studentaid.gov for more information.

What We Know as of March 2026

Graduate Students

Grad PLUS Loan program eliminated

  • Grad PLUS loans will be phased out beginning on July 1, 2026; beginning on that date, new loans will not be available for new borrowers.
  • Existing Grad PLUS loan borrowers can continue to access Grad PLUS loans under the current limits until completing their current program or for three additional years, whichever is less.
  • If you withdraw, take a break from enrollment, or change your graduate program while in graduate school at Assumption, you will lose your “legacy” status and will have to follow the new federal loan rules from the OBBBA. 

Graduate Unsubsidized Direct Loan Limits

Professional programs*

  • Up to $50,000/year, $200,000 lifetime borrowing limit.
  • Lifetime limit: $257,000 (includes amounts canceled, repaid, forgiven, or discharged)
  • No Graduate PLUS
  • Professional programs are defined by the Federal Department of Education as the following:
    • Pharmacy (Pharm.D.)
    • Dentistry (D.D.S. or D.M.D)
    • Veterinary Medicine (D.V.M.)
    • Law (LL.B or J.D.)
    • Medicine (M.D.)
    • Optometry (Q.D)
    • Podiatry (D.P.M., or M.H.L.)
    • Clinical Psychology (Psy.D. or Ph.D.)

Currently, there are no graduate programs at Assumption University that would be defined as a Professional program for purposes of federal student loan borrowing*.

        Waiting for final list of programs by the Federal Department of Education (ED).

  • Other graduate programs:
    • Up to $20,500/year, $100,000 lifetime borrowing limit (does not include undergraduate borrowing).
    • No Graduate PLUS
    • Lifetime limit: $257,000 (includes amounts canceled, repaid, forgiven, or discharged)
  • Existing Unsubsidized loan borrowers can access unsubsidized loans under the current limits until completing their current program or for three additional years, whichever is less.
  • If you withdraw, take a break from enrollment, or change your graduate program while in graduate school at Assumption, you will lose your “legacy” status and will have to follow the new federal loan rules from the OBBBA. 

Undergraduate Students

New Borrowing Limits for Parent PLUS Loan for Undergraduate Students

  • Starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime (aggregate) limit per dependent student.
  • Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits for 3 more years or until the student’s program ends whichever is less.
  •  If an undergraduate student withdraws or takes a break from enrollment (re-admitted), their parents will no longer fall under the “old” PLUS loan borrowing limits.  They will need to follow the new PLUS loan limits that take effect on July 1, 2026.  

Federal Subsidized and Unsubsidized Student Loans

  • There are no changes for undergraduate loans, although undergraduate loans will count towards the new lifetime limits ($257,000).

Public Service Loan Forgiveness (PSLF)

  • No changes to PSLF provisions, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action.

What Remains Unclear

What is considered a “Professional” vs. “Graduate” Program?

  • Other programs may qualify as professional.  Still waiting for final regulations.
  • We are awaiting clarification from the Federal Department of Education (ED).    

Grad PLUS Loans for Existing Borrowers

  • It’s uncertain if current students who remain eligible for Grad PLUS loans after July 1, 2026, can choose to decline Grad PLUS in order to access the new $50,000 Unsubsidized loan cap.
  • We are awaiting clarification from the Federal Department of Education (ED).    

Loan Proration for Part-Timers

  • The bill includes a provision to prorate loan amounts based on enrollment.
  • This could mean that part-time graduate and undergraduate students (e.g., those enrolled less than full-time) would only be eligible for a portion of the annual loan limit which includes the Federal Unsubsidized, Federal Subsidized, and Grad PLUS loans.  This does not impact the Parent PLUS loan.
  • We are awaiting clarification from the Federal Department of Education (ED) on how this will be applied to both graduate and undergraduate students.