One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) was signed into US law on 04 July 2025. This has made significant changes in the federal student loan programmes as a part of the shifts in fiscal policy. While there are no changes to federal student loans for the 2025–26 academic year, changes resulting from the legislation are due to be implemented from 01 July 2026. 

We are continuing to track all of these changes and plan to update this site as more clarification from the US Department of Education is released. In the meantime, please note:

• There are no changes to financial aid for the 2025–26 academic year, stemming from this legislation.
• Students starting a postgraduate programme before 01 July 2026, may still be eligible for Grad PLUS under current rules. Specific guidance on this transition is expected but not yet available.

We're here to help. If you have questions or would like to speak with a financial aid staff member at the University of Edinburgh, please email usloans@ed.ac.uk 

Important disclaimer: The information contained on this page is provided by University of Edinburgh financial aid staff to orient students to the changing landscape of federal student loan programmes. While it is based on our good faith understanding of the evolving federal standards, it is not official guidance and should not be regarded by students as definitive. Students should refer to federal governmental sources for official guidance. See studentaid.gov for more information.

Grad PLUS Loans

• Grad PLUS loans will be phased out beginning on 01 July 2026; beginning on that date, new Grad PLUS loans will not be available for new borrowers or those on new programmes.
• There will be some continuing eligibility for existing Grad PLUS borrowers as they complete their current programmes. These students will be known as legacy students.

New Graduate Unsubsidized Direct Loan Limits (effective 01 July 2026)

• Professional Programmes (e.g. BVMS 4-year GEP Vet Programme; LLB Graduate Entry Law)
  • Up to $50,000/year, $200,000 lifetime borrowing limit.
• Other Graduate Programmes
  • Up to $20,500/ year, $100,000 lifetime borrowing limit.
• Definitions of “professional” vs. “graduate” programs are still unclear though it's expected further clarification will be released in due course.
• Existing unsubsidized loan borrowers can access unsubsidized loans under the current limits until completing their current program or for three additional years, whichever is less.

Undergraduate Limits and Parent PLUS Loans

• There are no changes to undergraduate level subsidized and unsubsidized loans, although they will count towards the new lifetime limits.
• However, starting 01 July 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Existing Parent PLUS borrowers who have borrowed for their students before 01 July 2026, can continue with the current limits for 3 more years or until the student's programme ends (whichever is earlier).
• It is currently unclear if students who have repeated a period of study, have taken a break from their studies, or if they transfer programmes will remain under the old regulations. We will update this information as soon as we have clarification.

Public Service Loan Forgiveness (PSLF)

• No changes to PSLF provisions, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action.