One Big Beautiful Bill Act Info
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025. For students, families, and institutions like NLU, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. For example, the bill:
- Changes some rules for determining Pell Grant eligibility
- Modifies the Federal Direct Parent PLUS Loan program
- Eliminates the Federal Direct Grad PLUS Loan program for new borrowers
- Introduces new eligibility criteria and reporting requirements that could affect how aid is awarded and maintained
As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026-27 Free Application for Federal Student.
Students can monitor or review their federal student loan information and borrowing history by visiting studentaid.gov. For direct updates from the Department of Education visit: https://studentaid.gov/announcements-events/big-updates.
Please use the navigation menu on to explore detailed information about each program, including answers to frequently asked questions about loan limits.
Changes Affecting All Borrowers
New Loan Limit Structure
Beginning July 1, 2026, federal Direct Loans are governed by three distinct types of limits. Understanding the difference between them is important — they work differently and have different consequences when reached.
| Limit Type | What It Means | Does It Reset? |
|---|---|---|
|
Annual loan limit |
The maximum you can borrow in a single academic year. Varies by program level and enrollment intensity. |
N/A — resets each new award year |
|
Aggregate loan limit |
The maximum unpaid balance you can carry at any time across all your Subsidized and Unsubsidized loans for a given program level (undergraduate, graduate, or professional). |
Yes — as you repay loans, you can borrow again up to this ceiling |
|
Lifetime Maximum Aggregate Loan Limit ($257,500) |
The total amount of Title IV federal loans you can ever receive across your entire educational career, across all programs. Includes undergraduate loans, graduate loans, and Grad PLUS. |
NO — this never resets, regardless of repayment, forgiveness, or discharge. Once reached, no further federal loans are available. |
New: Annual Loan Amounts Are Reduced for Part-Time Enrollment
Starting with the 2026–2027 award year, students who enroll less than full-time will have their annual federal loan limit reduced proportionally based on their enrollment intensity. This is called the schedule of reductions.
How it works:
- Full-time enrollment → full annual loan limit applies
- Three-quarter time → approximately 75% of annual limit
- Half-time → approximately 50% of annual limit
- Less than half-time → reduced further proportionally
Key points about proration:
- This applies to ALL Direct Loan borrowers — both undergraduate and graduate students.
- There are no exemptions for work obligations, caregiving, disability, or how a program is designed.
- It applies even to legacy/grandfathered borrowers.
- If you start a year full-time and drop credits mid-year, your first disbursement is NOT retroactively reduced — but your next disbursement will be reduced to reflect your new enrollment intensity.
What Is Included in the $257,500 Lifetime Maximum?
The following loan types count toward the $257,500 Lifetime Maximum Aggregate Loan Limit:
- All Direct Subsidized Loans (undergraduate and graduate)
- All Direct Unsubsidized Loans (undergraduate and graduate)
- All Grad PLUS Loans received as a student borrower
- Federal Family Education Loans (FFELP) — older federal loans
- Federal Perkins Loans
The following do NOT count:
- Parent PLUS Loans taken by a parent on behalf of a dependent student
- HEAL/Health Profession loans made under the Public Health Service Act
- Consolidation Loans, though the underlying loans they paid off are still counted
- Loan amounts discharged due to false certification or identity theft
If you have repaid, refinanced, or had loans forgiven in the past, those amounts still count toward the $257,500 ceiling. Students with significant prior borrowing — including undergraduate debt — should review their full federal loan history at nslds.ed.gov or contact Financial Aid before borrowing additional funds.
FAQs
Yes. The $257,500 Lifetime Maximum Aggregate Loan Limit counts all federal loans ever disbursed to you, regardless of whether they have been repaid, forgiven, cancelled, or discharged. Repaying your loans does not free up lifetime borrowing capacity. This is the key difference between the aggregate limit (which does reset with repayment) and the lifetime maximum (which does not).
If you have already reached or exceeded the $257,500 lifetime limit and are not eligible for the interim exception, you have no remaining federal loan eligibility. Contact NLU's Financial Aid office to discuss alternative funding options for your continued enrollment.
Yes. All Direct Loans, FFELP loans, and Perkins Loans received at any point in your educational career — including undergraduate study — count toward the $257,500 lifetime cap. Incoming graduate students with significant undergraduate debt should review their NSLDS history before enrolling.
Not during your protected period. Legacy borrowers are exempt from the lifetime cap while their interim exception is active. However, once your expected time to credential ends, all loans you received — including those borrowed during your protected period — will count toward the $257,500 ceiling for any future borrowing.
Loan Limit Quick Reference
Use this table to quickly locate the loan limits that apply to your situation. 'New limits' apply to students who do not qualify for the interim exception. 'Legacy limits' apply to grandfathered students during their expected time to credential.
| Student Type | Annual limit — New Rules | Aggregate — New Rules | Legacy Protection |
|---|---|---|---|
|
Undergraduate — dependent |
$5,500–$7,500 Sub/Unsub (unchanged) |
$31,000 (unchanged) |
Limits unchanged — no material legacy difference |
|
Undergraduate — independent |
$9,500–$12,500 Sub/Unsub (unchanged) |
$57,500 (unchanged) |
Limits unchanged — no material legacy difference |
|
Graduate student |
$20,500 Unsubsidized; Grad PLUS eliminated |
$100,000 graduate; $257,500 lifetime |
Old limits + Grad PLUS for expected time to credential |
|
Professional student (JD, MD, PharmD, DDS) |
$50,000 Unsubsidized; Grad PLUS eliminated |
$200,000 professional; $257,500 lifetime |
Old limits + Grad PLUS for expected time to credential |
|
Parent PLUS (per dependent student) |
$20,000/year |
$65,000 lifetime per student across all schools |
Up to COA minus aid during student's protected period — no cap |
