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An Analysis of the One Big Beautiful Bill Act’s Effect on Student Loans
Congress passed the One Big Beautiful Bill Act (OBBB), which makes numerous changes to the federal student loan program, saving $307 billion.
Graduate students and parents of undergraduates will be subject to new caps on federal lending. Loan limits for undergraduate students remain unchanged.
The bill creates a new income-driven student loan repayment plan that will prevent borrowers’ balances from rising over time and ensure that most borrowers pay down their loans quickly.
Colleges and universities are held accountable for poor student outcomes; degree programs where graduates’ earnings are too low will lose access to federal funding.
Graduate students and parents of undergraduates will be subject to new caps on federal lending. Loan limits for undergraduate students remain unchanged.
The bill creates a new income-driven student loan repayment plan that will prevent borrowers’ balances from rising over time and ensure that most borrowers pay down their loans quickly.
Colleges and universities are held accountable for poor student outcomes; degree programs where graduates’ earnings are too low will lose access to federal funding.
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