Division of Student Success
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University of Nebraska Medical Center

Financial Aid Changes from the One Big Beautiful Bill Act

Financial Aid Changes from the One Big Beautiful Bill Act are effective July 1, 2026. The information on this page is current as of October 28, 2025, and the website will be updated as additional information becomes available. Please email finaid@unmc.edu if you have questions regarding the One Big Beautiful Bill Act.   

Elimination of Grad PLUS Loan Program

  • The Bill eliminates the Direct PLUS Loan program for graduate and professional students (commonly referred to as a Grad PLUS Loan) for new borrowers effective July 1, 2026.

  • Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can borrow from the Grad PLUS Loan program for 3 academic years or the remainder of their expected time to be credentialed, whichever is less.  The Grad PLUS Loan will no longer be available after June 30, 2029. 

New Parent PLUS Loan Annual and Aggregate Loan Limits

  • All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled or discharged).
  • Legacy Provision: If a borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to be credentialed, whichever is less. 

Summary of Additional Changes

A summary of other changes from the bill is provided below.

  • Prevents students with a Student Aid Index (SAI) more than double the maximum Pell Grant award amount from being Pell eligible.  
  • Reinstates the exemptions for family farm and family-owned small business assets from the SAI calculation.   
  • Annual loan limit for the Federal Direct Unsubsidized Loan is $20,500 per academic year 
  • Maximum graduate loan level borrowing is $100,000 
  • Annual loan limit for the Federal Direct Unsubsidized Loan is $50,000 per academic year 
  • Maximum graduate and professional loan debt is $200,000 
  • Maximum undergraduate, graduate, and professional federal student loan limit is $257,500 

*The Department of Education has established that Medicine, Dentistry, and Pharmacy are professional programs. With future updates, additional guidance will be provided to schools on the required definition of what constitutes a graduate level program vs. a professional level program.  

There will be 2 federal student loan repayment plans for borrowers with a loan on or after July 1, 2026.   

  • The Repayment Assistance Plan (RAP) will be the new income-based repayment plan for borrowers.   
  • Standard Repayment will offer 4 fixed terms of 10, 15, 20 or 25 years based on loan debt.   
  • More information on both repayment plans will be forthcoming from the Department of Education.