Tools and Resources

One Big Beautiful Bill Act
(OBBA):
What You Need to Know & FAQs

On July 4, 2025, the One Big Beautiful Bill Act (OBBA) was signed into law, introducing significant changes to federal student aid programs. Beginning July 1, 2026, several important changes will reshape how students and families pay for higher education. We are actively reviewing the legislation and will continue to share updates as additional guidance becomes available from the U.S. Department of Education and other relevant authorities.

Below is a summary of what we know so far, what these changes may mean for you, and the steps you can take to begin preparing. The information on this page is provided to help students and families navigate and prepare for the changes to federal student aid programs. We are still awaiting official guidance, and this information is subject to change at any time.

Professional Students 

New loan borrowers as of July 1, 2026 

Professional borrowers who first borrow federal graduate-level loans on or after July 1, 2026, for a professional academic program will be considered NEW borrowers. These borrowers will be subject to the newly established loan limits and rules that apply to enrollment periods on or after that date. 

This includes students who: 

  • Begin a new professional program on or after July 1, 2026;
  • Enroll in a professional program for the first time; or
  • Have previously completed a graduate or professional program but are now starting a different program (e.g., finishing a master’s degree and then enrolling in law school).
  • Students who take a leave of absence or take extra time to complete their degree will be considered a New Borrower.

Current borrowers who borrowed a loan before July 1, 2026: 

CURRENT (grandfathered) professional borrowers include those who borrowed federal graduate-level loans, including Direct Unsubsidized or Graduate PLUS loans, for a term that began before July 1, 2026, and remains enrolled in the same professional program at the same institution. Under the proposed regulations, eligible professional students may continue to borrow under the current loan rules for a limited period based on their “expected time to credential.” 

The proposed language indicates eligibility will be determined using an “expected time to completion,” as July 1, 2026, which would generally be the shorter of: 

  • Up to three academic years.
  • The remaining length of your program at the time eligibility is determined. 

Federal Direct Unsubsidized Loans for Professional Students: 

Updated Annual and Lifetime Limits for Professional Student Unsubsidized Loans ( New Borrowers): 

  • Up to $50,000 per year
  • $200,000 lifetime professional borrowing limit (excluding undergraduate loans)
  • Annual and lifetime limits for grandfathered students remain at previous levels.

Federal Graduate PLUS Loans: 

  • Federal Graduate PLUS Loans will be phased out beginning July 1, 2026.
  • After this date, Graduate PLUS Loans will not be available for new borrowers.

Updated Lifetime Limits for All Federal Loan Programs (New Borrowers): 

  • $257,500 lifetime aggregate borrowing limit on all federal student loans (excluding any loan amounts for Federal Parent PLUS Loans, Graduate PLUS Loans).
  • $138,500 lifetime aggregate borrowing limit will still apply to grandfathered borrowers.

Changes to Loan Eligibility Based on Enrollment (All Borrowers):

Direct Loans are awarded based on your enrollment status. If you are enrolled in less than full-time coursework, your Direct Loan eligibility will be reduced proportionally based on the number of credits you are enrolled in for the term. This adjustment is required by federal regulations and applies to all Direct Loan borrowers.

FAQ

Annual caps will be set at $50,000 for professional students. In the aggregate, loans will be capped at $200,000 for professional students.

The new loan limits take effect on July 1, 2026 for new borrowers.  

The bill provides an exception to the limits for borrowers enrolled in a program of study prior to July 1, 2026 to allow them to complete their program subject to the prior loan limits. Under this exception, if a student has an Unsubsidized and/or Grad PLUS Loan made before July 1, 2026, while enrolled in a professional degree program, the student can continue to borrow from the Grad PLUS Program for three academic years or the remainder of their expected time to credential, whichever is less.

Students placed in the interim legacy exception (grandfathered) cannot request to move to the new limits while they remain enrolled.

No. Award years for federal student loan distribution begin on July 1 and end the following June 30. A student enrolling in a program that begins in September 2026 would borrow a loan on or after July 1, 2026 for that academic year.

No. Any amount borrowed for a graduate degree will be subtracted from the amount available to borrow for a professional degree, just as any amount borrowed for a professional degree will be subtracted from the amount available to borrow for a graduate degree. In total, students who borrow federal loans for both a graduate and a professional degree may only borrow up to $200,000.

The lifetime borrowing cap will be $257,500 on all federal subsidized and unsubsidized student loans ($200,000 for graduate and professional degrees, plus $57,500 for undergraduate degree). This does not include Parent PLUS or Graduate PLUS Loans, which have separate caps.

The bill reduces how much a student may borrow per year if the student is enrolled less than full time. The reduction is determined by the amount of the academic year loan limit and the borrower’s eligibility for disbursement.

Financial aid is based on the number of credit hours you are enrolled in. Before disbursement, your financial aid is reviewed and adjusted to match your enrolled credit hours at that time. If you drop a class and your enrollment status changes (for example, from full-time to half-time), your financial aid may be reduced.  Depending on when the change occurs, this could affect your current term aid or a future term’s disbursement.

UNT Dallas offers payment plans each semester. Further information about how to install a payment plan can be found here. 

For students considering private loans, UNT Dallas does not provide a recommended lender list or endorse any lender. ELMSelect is a lender-neutral platform to display a historical list of lenders and education loan products that our students have used in previous years. The ELMSelect portal can be accessed here or the lender's website to receive the Application Disclosure Statement and to complete the Self-Certification form.

Students expecting to start a new program after July 1, 2026, should evaluate how OBBBA’s new limits align with total program costs, timeline to completion, and anticipated financial resources. Early planning will help avoid surprises once the new borrowing rules take effect.  

Once you have submitted your FAFSA application to UNT Dallas, continue to monitor your email and student portal for potential additional tasks and/or updates.

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