One Big Beautiful Bill Act (OBBBA) Financial Aid Updates
Last updated: March 13, 2026
The OBBBA introduces significant changes to federal student aid beginning July 1, 2026 (unless otherwise noted). The most current information available to us regarding these changes and their impact on students and families is below. We are closely monitoring this legislation and will update this page as necessary.
Please Note:
These changes do not apply to the 2025-2026 academic year.
Rutgers University does not have the authority to grant exceptions to regulations or changes mandated by the federal government.
Federal Direct Loan Programs
Grad PLUS Loan Changes and Alternative Options
Prior to the implementation of the OBBBA, Grad PLUS loans allowed graduate and professional students to borrow up to the full cost of attendance (minus other aid). As of July 1, 2026, the option to borrow a Grad PLUS loan will be eliminated for students who have not previously borrowed a Federal Direct Loan or are in a different degree program or institution than they were when they borrowed.
Students who previously borrowed a federal direct loan of any kind while in their current degree program at their current institution, before July 1, 2026, may borrow a Grad PLUS loan for up to three additional academic years or until they complete their program, whichever comes first. This continuation applies only for the degree program the student was enrolled in when they borrowed their federal loan. In addition students must still be attending the same institution they were when they first borrowed.
Incoming or continuing students who have not borrowed a Federal Direct Loan of any kind for their current degree program, prior to July 1, 2026, continuing students who enroll in another degree program on or after July 1, 2026, and transfer students, will not retain eligibility for Grad PLUS loans. However, students still have options to cover their remaining costs. Learn more below about how to prepare.
Check Your Loan History
Log in with your FSA ID (username and password) at StudentAid.gov.
Select View Details on the dashboard.
Review the My Loans section to understand your total loan amounts and outstanding balances, loan types, and loan statuses.
View specific details for each loan including disbursement dates, interest rates, and loan servicer information.
Explore Private Loans
If you are not eligible for the Grad PLUS Loan Program under the rules imposed by the OBBBA, visit our private loans information page to learn more about what you should consider, questions you should ask, choosing a lender, and how to apply.
Reach Out If You Need Help
We’re here to help you navigate these changes!
Students should contact their regional One Stop Student Services Center.
Rutgers Health students should contact their campus Office of Financial Aid.
Unsubsidized Loan Borrowing Limits for Graduate and Professional Students
Graduate and Professional students will be subject to new annual and lifetime borrowing caps as detailed in the chart below. These limits do not include amounts borrowed as an undergraduate.
| effective 7/1/2026 | Annual | Lifetime |
| Non-Professional | $20,500 | $100,000 |
| Professional | $50,000 | $200,000 |
Loan limits prior to the implementation of the OBBBA will continue to apply to students who received a Federal Direct loan of any kind before July 1, 2026 for up to three more academic years or until they finish their degree program, whichever comes first. This continuation applies only for the degree program the student was enrolled in when they first borrowed. In addition students must still be attending the same institution they were when they first borrowed.
Redefinition of Professional Degrees
| Category | Professional Programs | Non-Professional Programs |
| Health & Medicine | Medicine (M.D.) Dentistry (D.D.S., D.M.D.) Pharmacy (Pharm.D.) Veterinary Medicine (D.V.M.) Optometry (O.D.) Osteopathic Medicine (D.O.) Podiatry (D.P.M.) Chiropractic (D.C.) |
Nursing (including NP) Physician Assistant (PA) Physical Therapy (PT) Occupational Therapy (OT) Audiology Speech Language Pathology Public Health |
| Law & Theology | Law (J.D., L.L.B.) Theology (M.Div., M.H.L.) |
Religious Studies (non-ministerial) Ethics programs |
| Psychology | Clinical Psychology (Psy.D.) | Counseling School Psychology Non-clinical Psychology tracks |
| Arts & Humanities | None | MFA (Master of Fine Arts) MA in Literature, History, Philosophy Performing Arts |
| Social Sciences | None | Sociology Political Science Anthropology |
| Business & STEM | None | MBA MS in Finance Accounting Engineering Computer Science Mathematics |
| Education & Social Services | None | M.Ed. Ed.D. Social Work |
Borrowing Limits for Parent PLUS Loans
Parents will be subject to new annual and lifetime borrowing caps per dependent student as detailed in the chart below.
| effective 7/1/2026 | Annual | Lifetime |
| Parent PLUS Loans | $20,000 | $65,000 |
If a student or parent received a Federal Direct loan of any kind before July 1, 2026, the parent can continue to borrow under the loan limits prior to the implementation of the OBBBA for up to three more academic years or until the student finishes their degree program, whichever comes first. This continuation applies only for the degree program the student was enrolled in when the student or parent first borrowed. In addition students must still be attending the same institution they were when they first borrowed.
Federal Loan Program Lifetime Loan Limits
A $257,500 lifetime borrowing limit will apply to all federal student loans, with the exception of Parent PLUS and Graduate PLUS loans.
Loan limits prior to the implementation of the OBBBA will continue to apply to students who received a Federal Direct loan of any kind before July 1, 2026 for up to three more academic years or until they finish their degree program, whichever comes first. This continuation applies only for the degree program the student was enrolled in when they first borrowed. In addition students must still be attending the same institution they were when they first borrowed.
Federal Loan Reductions for Less-Than-Full-Time Enrollment
Loan limits will be prorated depending on enrollment level, similar to grant funding. This means borrowers enrolled less than full time will only be able to borrow loan amounts in direct proportion to their credit load, with a minimum half-time enrollment requirement. Reductions apply to Subsidized, Unsibsidized and Grad Plus loans. Parent PLUS loans will not be reduced.
The Department of Education has not yet provided proration amounts. This section will be updated accordingly when further information is available.
Loan Repayment
Repayment Assistance Plan (RAP) - NEW
RAP is a newly created income-based repayment plan. Some important details about this new plan are as follows:
- If married, filiing separately, the spouse’s AGI and number of dependents are not included in the payment calculation.
- Monthly payment is 1-10% of income based on AGI ($10 minimum payment applies).
- $50 off monthly base payment per dependent.
- 30 year repayment period.
- No negative amortization.
- No cap on monthly payment, even if it’s higher than the standard repayment plan would be.
- If a borrower makes an on-time payment that reduces thier principal by less than $50, the U.S. Department of Education will make a payment to the principal, up to the amount paid, minus what was applied to the principal, or $50, whichever is less.
Standard Repayment Plan - NEW
A new standard plan has been created with 4 fixed terms of 10, 15, 20, or 25 years, based on the amount borrowed (or outstanding balance if already in repayment).
Income Based Repayment (IBR) Plan - CURRENT
Important information about changes to the current IBR plan are as follows:
- Requirement for borrowers to demonstrate a partial financial hardship has been removed.
- Allows for covered income contigent loans to be repaid under IBR.
Repayment Options for CURRENT student borrowers
Current borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current Standard, Graduated, Extended or current IBR repayment plans. They can also enroll in the new RAP.
Until July 1, 2028, current borrowers may also switch between, enter, or remain on existing Income-Driven Repayment (IDR) plans, such as Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE). Current borrowers enrolled in these plans must transition to a different repayment plan (IBR, Standard, RAP) by July 1, 2028. If no selection is made by that date, they will be automatically moved into RAP.
Repayment Options for new student borrowers
New loans made on or after July 1, 2026, can only be repaid using the new standard repayemnt plan or the new RAP. If a borrower with new loans made on our after July 1, 2026 does not select a plan, they will be automatically assigned to the new standard repayment plan.
All loans must be paid under the same repayment plan. This means that borrowers with loans made before July 1, 2026 who take out additional loans on or after July 1, 2026, will only be able to choose from the new standard plan or RAP.
Repayment Options for Consolidation & Parent PLUS Loans
Information about consolidation loan changes is as follows:
- Consolidation loans made on or after July 1, 2026 are only eligible for the new standard repayment plan or RAP.
- Until July 1, 2028, borrowers with consolidation loans (subsidized or unsubsidized) taken out before July 1, 2026, may also switch between, enter, or remain on existing Income-Driven Repayment (IDR) plans, such as Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE). Current borrowers enrolled in these plans must transition to a different repayment plan (IBR, Standard, RAP) by July 1, 2028. If no selection is made by that date, they will be automatically moved into RAP.
- If a consolidation loan was used to pay off a Parent PLUS loan, it must enter repayment under ICR before July 1, 2028 to become eligible for Income-Based Repayment (IBR). If the borrower takes no action by that date, all eligible loans will be automatically moved to RAP and any loans not eligible for RAP will be placed into IBR.
Information about Parent PLUS changes is as follows:
- All new Parent PLUS loans made on or after July 1, 2026 are not eligible for RAP. They must be paid under the standard repayment plan.
- All Parent PLUS loans must be paid under the same repayment plan. This means that borrowers with Parent PLUS loans made before July 1, 2026 who take out additional loans from the program on or after July 1, 2026, will only be able to choose the new standard plan.
Loan Rehabilitation Terms
As of July 1, 2027, borrowers can rehabilitate a defaulted loan twice instead of once as is currently allowed. Rehabilitating a loan involves working with the loan servicer to bring the loan back to good standing by making a series of agreed-upon monthly payments. The minimum rehab payment for Direct Loans will be $10.
Loan Deferment
As of July 1, 2027, Economic Hardship and Unemployment deferments will no longer be available for new loans. Borrowers with loans made on or before July 1, 2027 can still use these deferment options under the current rules.
Loan Forbearance
Loans made on or after July 1, 2027 are eligible for forbearance for up to nine months in any two-year period. This is a change from the current rules which allow for a forbearance up to 12 months in a three-year period.
Pell Grants (Undergraduate Students)
Cost of Attendance (COA) covered by scholarships/grants
Students who receive scholarships or grants from non-federal sources that cover their entire COA will not be eligible to receive Pell Grants, even if they meet other eligibility criteria for the program.
Students with a High Student Aid Index (SAI)
Students whose SAI exceeds twice the maximum Pell Grant award will not be eligible to receive a Pell Grant. The maximum Pell Grant award for 2026-2027 is $7,395. Therefore, a student whose SAI is over $14,970 will not be eligible.
Learn more about SAI and Pell Grants.
Additional Resources
Federal Student Aid OBBBA Update Webpage
If you need additional assistance, please contact your regional One Stop Student Services Center. If you are a Rutgers Health student, please contact your campus Office of Financial Aid.