Summary
The Department of Education announced changes to federal student loan programs under President Trump's One Big Beautiful Bill Act (OBBBA). These changes remove the Grad PLUS program, set limits on Parent PLUS loans, and create a new Repayment Assistance Plan (RAP). The revisions also alter eligibility for Public Service Loan Forgiveness (PSLF), excluding some nonprofit and government workers from benefits.
Key Facts
- The Grad PLUS program has been eliminated.
- Parent PLUS Loans now have stricter borrowing caps.
- A new Repayment Assistance Plan (RAP) will start in July 2026.
- Graduate students can borrow up to $20,500 annually, with a lifetime limit of $100,000.
- Professional students have a cap of $50,000 per year, with a total limit of $200,000.
- The Public Service Loan Forgiveness (PSLF) program will exclude organizations with "substantial illegal purposes."
- Some organizations may be excluded for supporting undocumented immigrants or providing certain healthcare services against specific regulations.
- Four U.S. cities and labor unions have filed a lawsuit against the new PSLF criteria.
