P.L. 119-21, also known as the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, includes significant changes to federal student loan programs. It sets new limits for federal student loans, phases-out the Graduate PLUS Loan program, and requires loan proration for less than full-time enrollment.
While many of the provisions become effective for the academic year 2026-2027, the loan program changes will allow for interim exceptions for current borrowers to continue borrowing under the current limits.
All information provided here is based on MIT’s understanding of the OBBBA implementation by the U.S. Department of Education, based on draft regulatory text. All information provided here is subject to change pending final regulatory text, which is expected in the first half of 2026. MIT will update this site as new information becomes available.
Changes starting with the 2026–27 academic year may include:
Undergraduate Students and Parents
- There are new limits for the new limits for the Parent Loan for Undergraduate Students (PLUS). New borrowers will have an annual limit of $20,000 and an aggregate limit of $65,000 per dependent student. Historically, borrowers have been able to cover the full cost of attendance (both direct and indirect costs) through this program, as there was no specific limit.
- Annual loan amounts must be prorated for students enrolled in a less-than-full-time status.
- New lifetime loan limit of $257,500 includes student borrowing for undergraduate, graduate, and professional study without regard to any amounts repaid, forgiven, canceled, or otherwise discharged.
Graduate Students
- Graduate PLUS Loans have been eliminated for new borrowers.
If you are a current MIT graduate student and you borrowed a federal student loan for a term that begins before July 1, 2026, you may be eligible to continue borrowing Grad PLUS loan to finish your current program of study or for three years, whichever is shorter. - Graduate student Direct Unsubsidized Loan annual limit unchanged ($20,500); new aggregate limit of $100,000 (not including undergraduate loans). The previous aggregate limit was $138,500, including undergraduate loans. Existing MIT borrowers may be eligible to continue borrowing under previous limit for up to three academic years or the remainder of their program, whichever is less.
- Annual loan amounts must be prorated for students enrolled in a less-than-full-time status.
- New lifetime loan limit of $257,500 includes student borrowing for undergraduate, graduate, and professional study without regard to any amounts repaid, forgiven, canceled, or otherwise discharged.