Overview
- The U.S. Department of Education began rolling out the One Big Beautiful Bill Act on July 1, 2026, launching two new repayment options—the Repayment Assistance Plan (RAP) and a Tiered Standard Repayment Plan—and starting notices for roughly 7–7.5 million former SAVE enrollees who have 90 days to choose a new plan.
- New borrowing caps for loans taken after July 1 limit most graduate students to $20,500 a year and $100,000 total, professional students to $50,000 a year and $200,000 total, and Parent PLUS borrowers to $20,000 per year and $65,000 per child.
- The Grad PLUS program was eliminated for new borrowers while existing Grad PLUS borrowers are grandfathered and can keep their loans under prior rules.
- A federal judge blocked parts of the Education Department’s narrower definition of “professional” degrees, prompting the agency to publish a temporary revised list to comply as it appeals the ruling, leaving which programs qualify for higher caps in flux.
- Officials announced a temporary 1 percentage‑point interest cut for borrowers who enroll in autopay by Sept. 30 that runs through June 30, 2028, but experts warn many people will face higher monthly bills, possible shifts to private loans, and operational strain from servicer notices, consolidation cutoffs, and ongoing litigation.