What you Need to Know: What Changed and When
A new federal law, called the One Big Beautiful Bill Act (also called OBBBA or OB3), will impact some Federal Financial Aid programs beginning July 1, 2026 and/or with the 2026-27 federal award year. These changes may affect future financial aid eligibility, such as how much you can borrow and which federal programs are available to you.
What We Know
Loan Limits
Undergraduate Students
- Federal Direct Subsidized and Unsubsidized Loans still exist.
- Federal Direct Loan Limits for undergraduates remain the same.
- Pell Grants are still available for eligible students.
Graduate Students
- New Federal Direct Unsubsidized loan limits apply:
- Annual limit: Up to $20,500 per year for most graduate programs
- Lifetime limit: Up to $100,000 total for most graduate programs
- Graduate PLUS loans will not be available for new borrowers on July 1, 2026.
Graduate Plus (“Legacy”) Students
Some students may qualify for a legacy provision that allows continued borrowing through the Graduate PLUS loan program:
- If you borrowed a federal student loan before July 1, 2026, and
- If you stay in the same program at the same institution
Eligible students may borrow a Graduate Plus Loan for up to three additional academic years or for the remainder of their program. Changing programs, schools, or pausing enrollment will end the legacy provision.
Professional Students
- As of 2026, Herzing University has no programs designated as professional programs by The Department of Education. Click here for more information about professional degrees.
Less Than Full-Time Loan Reductions
New Less Than Full-Time (LTFT) enrollment loan limit requires the amount of any Direct Loan a student may borrow to be reduced based on enrollment intensity (the number of credits in the semester and/or academic year).
Parent Loans (Parent PLUS)
- Parent PLUS loans have new annual and lifetime borrowing limits for new loans after July 1, 2026:
- Annual limit: $20,000 per dependent student
- Lifetime limit: $65,000 per dependent student
- New Parent PLUS loans after that date cannot enter income-driven repayment plans. They will be eligible for the standard repayment plan only.
- Parents who have already borrowed loans should review loan and repayment options before July 1, 2026.
Student Loan Repayment
Repayment plan options will change beginning July 1, 2026:
New and Current Borrowers with new loans after July 1, 2026
Students who have borrowed before July 1, 2026, and will borrow a new loan after July 1, 2026, will have two repayment options:
Standard Repayment
- Fixed monthly payments
- Repayment terms vary between 10 to 25 years, depending on the loan amount
Repayment Assistance Plan (RAP)
- Monthly payment based on income
- Terms can last up to 30 years
- Any remaining balance may be forgiven at the end of the repayment terms
Current Borrowers with no new loans after July 1, 2026
- Borrowers will be eligible to enroll in the current Standard, Graduated, Extended, or Income-Based repayment plans, or may opt into RAP.
- Several income-driven plans (SAVE, PAYE, ICR) will close over time. Borrowers in those plans must choose a new plan by July 1, 2028.
What is Still Uncertain
As of April 2026, OBBBA federal regulations have not been finalized. As a result:
- Loan reductions for less than full time enrollment (used to calculate federal loan limits) rules are not fully defined yet.
- Additional definitions and requirements may change.
What Students and Parent Borrowers Can Do Now
- Review the Federal Student Aid Website for updates about OBBBA
- Check your federal loan history at StudentAid.gov
- Pay attention to start dates and whether you borrowed any federal loans before July 1, 2026.
- Learn more about loan and repayment options here:
- Plan ahead. If unsure of how these changes will apply to you, contact your Financial Aid Advisor.