Announcements

Federal Student Aid Changes Coming in 2026

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. It brings significant changes to how students and families pay for college, starting July 1, 2026. Those changes, as we know them currently, are summarized below by type of aid.  

The U.S. Department of Education (ED) should release final OBBBA regulations in late spring 2026. For more detailed information and guidance, please be sure to review ED's One Big Beautiful Bill Act Update webpage. 

We will continue to update this page with the most accurate and actionable information available. We understand that students, families, and others have questions, and we are here to help.

Undergraduate and Graduate Loans

Watch this short video for a summary of changes to federal graduate loans.

Federal loans borrowed in the student's name which must be repaid after graduation or if they drop below less than half-time enrollment status or leave school.  

What's Changing on July 1, 2026  

• The Grad PLUS Loan program will be discontinued and unavailable for new borrowers.
• Legacy Provision: Graduate students who have borrowed a Direct Loan (an Unsubsidized or Grad PLUS Loan) disbursed before July 1, 2026 for their program, may continue borrowing under existing loan limits and Grad PLUS Loan rules for up to three more academic years or until their program ends - whichever comes first. A stop in enrollment or a change to program of study will end Legacy Provision eligibility, and the student will be held to the new OBBBA rules.
• Borrowing limits will now be capped as follows:
  • Undergraduate: no changes
  • Graduate (unsubsidized only): $20,500 per year, up to $100,000 lifetime
  • Total lifetime borrowing limit for all federal student loans (except Parent PLUS): $257,500 (Note that all student loans, including Graduate PLUS Loans, will count against the new lifetime borrowing limit).

• Enrollment Status: If enrolled less than full-time, loan eligibility (annual amount) will be prorated (reduced). 

What This Means for You  

• Current graduate student borrowers: If your Direct Loan(s) have been or will be disbursed before July 1, 2026 (for academic year 2025-2026), you may keep borrowing under the old terms for up to 3 more academic years or until your program ends, whichever comes first.
• Prospective graduate students: Grad PLUS Loans won't be available starting with the 2026-2027 academic year. Students with financial need will still be eligible for federal unsubsidized Direct Loans (with the new caps), private loans, and scholarships.
• All graduate students: Connect with the CCSFC for one-on-one guidance on how these changes may affect you.

Parent PLUS Loans  

These federal loans are borrowed by parents to help pay for a child's undergraduate education. Parents - not students - are responsible for repayment.  

What's Changing on July 1, 2026  

• Parents may borrow up to $20,000 per year, with a $65,000 lifetime maximum per student.
• Legacy Provision: Parents who borrowed before July 1, 2026, may continue borrowing under existing Parent PLUS Loan rules for up to three more academic years or the student completes their program ends - whichever comes first. 

What This Means for You  

• Current Parent PLUS borrowers: You may still borrow under the old rules for the length of the Legacy Provision (see above).
• New Parent PLUS borrowers: Be aware of the new caps listed above. Families may need to consider borrowing private loans.

Repayment Plans for Student Borrowers  

After a student graduates, drops below half-time enrollment status, or leaves school, they are required to repay their federal student loans under a chosen repayment plan.  

We encourage any borrower who is currently in repayment of their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview, and there may be other details a current borrower in repayment will want to consider before deciding how to proceed.  

What's Changing on July 1, 2026  

• Some existing repayment plans will end (ICR, PAYE, and SAVE).
• A new income based repayment plan (Repayment Assistance Plan, or RAP) will be created. Payments under this plan will be determined based upon several factors:
  • payments may be as low as $10/month,
  • adjusted for dependents,
  • and possibly forgiven after 30 years of payments.
• A new standard repayment plan will be created. Payments under this plan will have four fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed). 

What This Means for You  

• Current Borrowers:
  • If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income based (IBR) repayment plan, or you may opt into the new RAP.
  • If you are currently enrolled in ICR, PAYE, or SAVE, you must transition to a different repayment plan by July 1, 2028, (either current income based repayment plan, current standard plan, or RAP). If no selection is made, you will be moved to RAP automatically.
  • It's important to note that all loans must be repaid under the same plan. So, borrowers with loans made before July 1, 2026, who take out additional loans on or after July 1, 2026, will be limited to choosing between the RAP and the new standard plan. 
• New Borrowers: For loans made on or after July 1, 2026, there will be two repayment plan options - the new standard repayment plan or RAP. If no selection is made, you will be assigned to the new standards payment plan. 

Repayment Plans for Parent Borrowers

Parent borrowers may choose to defer payments until six months after their student graduates, leaves school, or drops below half-time enrollment status. Otherwise, payments begin once the loan is fully disbursed (paid out) unless you request a deferment.  

We encourage any borrower who is currently in repayment of their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview, and there may be other details a current borrower in repayment will want to consider before deciding how best to proceed.  

What's Changing on July 1, 2026  

• A new standard repayment plan will be created. Payments under this plan will have four fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed).

What This Means for You  

• Current Borrowers:
  • If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income based (IBR) repayment plan.
  • If you borrowed prior to July 1, 2026, AND subsequently borrow after July 1, 2026, repayment for all loans must be under the same payment plan, which is the new standard payment plan.
• New Borrowers: Loans made on or after July 1, 2026, can be repaid using only the new standard plan to choose from.