Federal Legislation Updates

Federal student aid policy is constantly changing. We recognize that these decisions are deeply personal and often stressful. Our goal is to provide clear information and connect you with people who can help you plan with confidence. This page reflects what we know right now, organized to help you understand what’s changing, what it means for your program, and what steps, if any, you should be taking. We’ll update this page as new guidance becomes available, and our financial aid team is always available to help you think through your specific situation.

Last Update: June 2026

Helpful Resources:

Students are encouraged to check these sources regularly to remain informed about potential impacts to federal borrowing limits, repayment plans, and eligibility.

The One Big Beautiful Bill Act: What JD and MBLT Students Need to Know

last updated:
June 2026

Federal legislation known as the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, makes significant changes to federal student loans. Most changes take effect July 1, 2026. We know these changes can be confusing, particularly for students already mid-program or just beginning to plan. Our goal here is to give you the clearest picture possible, so you can make decisions with confidence.

Do these changes affect my financial aid for the 2025–2026 academic year?

No. Aid for the 2025–2026 academic year will follow the current federal rules. The new loan limits and repayment structure begin with loans first disbursed on or after July 1, 2026, which generally corresponds to the 2026–2027 award year.

If you are currently enrolled and receiving federal aid, you will continue under your existing aid offer for this academic year.

What is happening to Graduate PLUS Loans?

For new borrowers: Grad PLUS Loans will not be available for students whose first Direct Loan for their program is made on or after July 1, 2026.
•If you previously received a federal direct loan while enrolled in your current COL program before July 1, 2026, you may borrow under prior limits for up to three academic years or until program completion — whichever comes first (the ‘legacy provision’).
- Important: To be eligible for the previous loan limits; you must be continuously enrolled. If you take a leave of absence or don’t complete a term, you will be considered a new borrower and subject to the new limits.

What are the new federal loan limits for law students?

For new borrowing starting July 1, 2026:

The JD degree (LL.B. or J.D.) is explicitly listed as a professional degree program in federal regulation, qualifying JD students for the higher professional borrowing caps:

Note: Students enrolled less than full-time will have their annual loan limits reduced proportionally based on the percentage of full-time enrollment

What should I be doing now as I make decisions about starting or continuing a graduate program?

You don’t need to make rushed decisions — but if you have questions about how these changes apply to your program and timeline, the best thing you can do is connect with our financial aid team. Some things worth discussing:

Clarify your timeline, especially if you are considering beginning or completing your program before July 1, 2026
Whether you may benefit from the legacy Grad PLUS provision based on your current enrollment status.
How the new loan limits affect your projected borrowing for the remainder of your program.
Which repayment plan is right for you, especially if you are currently on SAVE.
Scholarship opportunities, employer benefits, or other funding sources that may reduce your federal borrowing need.

Contact Financial Aid

What Is Changing with Repayment Plans?

Currently enrolled students and graduates with federal loans should pay close attention to these changes.

SAVE Plan Vacated — The SAVE plan was vacated on March 10, 2026. If you were on SAVE, you must switch to another plan.
Repayment Assistance Plan (RAP) — The new income-driven plan created by the OBBBA, expected to launch July 1, 2026. For borrowers with loans first disbursed on or after July 1, 2026, RAP will be the only available income-driven repayment plan. Forgiveness after 30 years.
Existing Borrowers — Borrowers with loans disbursed before July 1, 2026 can stay on their current plan until July 1, 2028. PAYE, ICR, and SAVE close permanently after that date. IBR remains available indefinitely.
Tax Implications — IDR forgiveness discharged in 2026 or later is taxable at the federal level unless you qualify for an exception (e.g., insolvency exclusion under IRS Form 982).

A Note on Public Service Loan Forgiveness (PSLF)

Law graduates in public interest careers — public defenders’ offices, legal aid organizations, government agencies, and nonprofits — commonly qualify for PSLF. If you work or plan to work for a qualifying employer, PSLF may be one of the most impactful tools for managing your law school debt. Contact Financial Aid or visit studentaid.gov to learn more.

Who can I talk to with questions or worries about these changes?

If you are feeling uncertain or anxious about these changes, you are not alone. Financing graduate education is a significant decision, and it is appropriate to ask questions.
For specific questions about your eligibility and loan options, contact our Financial Aid Office.

We are committed to giving you timely information, realistic options, and a supportive environment as you plan your next steps.