How the “Big Beautiful Bill” Will Affect Your Student Loans

Change is coming to federal student loans, and whether you’re a current borrower, planning for college, or helping your kids pay for school, the “Big Beautiful Bill” is about to reshape the rules. Here’s what’s changing, what isn’t, and how you can plan ahead to protect your financial future.

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🚦 Big Dates to Remember

July 2026: New rules for borrowing and consolidating federal loans begin.
July 2028: Most older repayment plans will CLOSE to new borrowers. (If you’re enrolled, you can stay, but only if you don’t take out new loans or consolidate after July 2026.)

🤔 Already Have Student Loans? Here’s How You’re Affected

Will my repayment plan change?

Good news: If you’re already on an income-driven repayment plan, you get to keep it! But if you borrow more federal loans or consolidate after July 2026, you’ll have to switch to one of the new repayment plans.

What about deferment and forbearance?

Economic hardship and unemployment deferments are going away for new loans after July 2026.
Forbearance will only be available for short-term, limited use.

Can I still qualify for loan forgiveness?

Yes, but future access may get trickier. If you’re already enrolled in Public Service Loan Forgiveness (PSLF), stay the course, but double-check your qualifying employment and payment status.

🎓 Thinking of Borrowing for the Future? Here’s What’s New

Borrowing Limits Are Changing

Who	Annual Limit	Lifetime Limit	Note
Graduate	$20,500	$100,000	Grad PLUS loans eliminated
Professional	$50,000	$200,000	Law/Medical students
Parent PLUS	$20,000	$65,000 per student	Income-based repayment goes away

Repayment Options: Only 2 for New Loans After July 2026

Standard Repayment: 10–25 years depending on the loan balance.
Repayment Assistance Plan (RAP): Payment based on your income; forgiveness after 30 years. You’ll never pay less than $10/month, no matter your income, but any unpaid interest gets waived, so your loan balance never grows out of control.

Pell Grants: From July 2026 on, only full-time students can get Pell Grants. If you’re attending part-time, working a lot, or have family care duties, you may see less grant support.

✅ How to Stay Ahead of the Changes

Review your loans and plans now.
Consider consolidating or making changes before July 2026 if you want to keep your current repayment plan.
Set calendar reminders for July 2026 and July 2028.
Stay in the loop: Check for official updates on Federal Student Aid’s website and reach out to LendKey or your loan servicer if you have questions.

💡 FAQ Quick Hits

Are private loans changing?
No, these rules only hit federal loans. However, more students may start needing private loans as federal limits tighten.
What should parents know?
PLUS loan borrowing gets capped ($65,000 per student). Planning ahead—and talking as a family—is more important than ever.

🚨 Disclosure: Always use grants, scholarships, and federal student loans first. Private loans should only fill the gap after you’ve exhausted all your federal aid options—federal loans offer more protections and better terms for most students.

The “Big Beautiful Bill” is big, but you have time to prepare. Learn the dates, know your options, and don’t hesitate to ask for help—so you can make confident decisions about your student loans, starting now.