One Big Beautiful Bill Act: What Students Need to Know
Federal student loan rules are changing as a result of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. While many of these changes will take effect July 1, 2026, the U.S. Department of Education has not yet released full implementation guidance. Goodwin University is closely monitoring updates and will revise this page as more details become available.
Below is what we know as of February 2026:
How part-time enrollment may affect your loans
Starting July 1, 2026, federal student loans will be prorated based on the number of credits you take, rather than simply whether you are enrolled full-time or part-time.
- If you enroll in fewer than the full-time credit minimum, your loan amount may be reduced.
- Full-time minimums are:
- 9 credits for graduate and professional programs
- 12 credits for undergraduate programs
If you are planning to enroll part-time, this change could affect how much you are eligible to borrow.
Graduate PLUS Loans
- The Graduate PLUS Loan program will begin to phase out on July 1, 2026.
- New borrowers (students who have not borrowed federal loans in their current graduate program) will no longer be eligible.
- If you have already borrowed federal loans for your current graduate program, you may continue to borrow Graduate PLUS Loans for up to three additional academic years or until you complete your program, whichever comes first.
New lifetime loan limit for graduate students
For students in all other graduate programs:
- The annual loan limit remains $20,500.
- A new $100,000 lifetime borrowing limit will apply to graduate study
New Parent PLUS Loan limits
Changes are also coming to Parent PLUS Loans beginning July 1, 2026:
- Parents may borrow up to $20,000 per student per academic year
- A new $65,000 lifetime limit will apply per dependent student
- Parents who have already borrowed Parent PLUS Loans may continue borrowing for up to three additional academic years, or until the student completes their degree, and will not be subject to the new limits
What happens next?
We expect to receive more detailed guidance from the U.S. Department of Education soon. As new information becomes available, this page will be updated to reflect the latest federal requirements and how they may affect your financial aid.