October 7, 2025   1 PM Easstern

There have been lots of questions as to the impact on financial aid and student loans as a result of "The One, Big, Beautiful Bill Act." Here's a brief synopsis...

For families with Class of 2026 High School graduates it's important to plan for new student loan limits:

• Parent PLUS loans are capped at $20,000/year, $65,000 lifetime.
• Graduate loans are capped at $20,500/year, $100,000 lifetime.
• Federal student loan limits will remain unchanged.
• Private loans or savings will likely be needed to fill the gap.
• File FAFSA because it keeps federal loan and aid eligibility open.
• Let's plan to search for more free scholarship money!

For families with students entering college in Fall 2025 or who are already a college student, you will have “legacy borrower” protections until your student receives their degree or 3 years out

Stay the Course with FAFSA

• Existing loan programs (including Grad PLUS) remain available for current undergrads/grad students until their program ends or until 2029 at the latest.
• Filing FAFSA annually keeps them eligible for maximum federal aid under old rules.

Plan for Transition

• If a student will continue to grad school beyond July 2026, anticipate new borrowing caps and start scholarship searches early.
• Families may need to pivot toward private lenders sooner.

Monitor Repayment Plan Simplification

• The hardship requirement for income-driven repayment (IBR/RAP) is gone — so students with existing federal loans should file FAFSA, borrow as needed, and know they can later select an income-based repayment option without the extra eligibility hurdle.

CSS Profile Families

• FAFSA changes don’t affect CSS Profile directly — but some private colleges may adjust their own aid formulas in response to shrinking federal loan availability. Continue submitting both financial aid applications.