Federal Loan Changes Under the One Big Beautiful Bill Act (OB3)

NEED HELP?
1
Help With ...
2
Submit Case
3
Contact Us

Beginning July 1, 2026, changes to the law will affect the amount graduate students can borrow, the types of loans available, and their repayment options after graduation. This page is intended for graduate students and families and explains what’s changing, when it will take effect, and how it may impact them. If you are unsure about how this impacts your academic studies, we encourage you to contact Canes Central before making enrollment or borrowing decisions.

While federal loan programs are changing nationwide, the University of Miami remains committed to helping graduate and professional students navigate these changes, understand their eligibility, and develop a financing plan that supports their educational goals.

Primary Changes and Legacy Eligibility for Current Students

  • Under the new rules, the Graduate PLUS program and the Parent PLUS programs are being eliminated, in addition there are new limits for graduate and professional student borrowers.
  • Current students may be permitted to continue borrowing under the previous (“legacy”) federal loan rules for a limited period of time.  This status varies by student and is limited by the “remaining time” (the published program length less the student’s prior enrollment including transferred credits) in the program and capped at a maximum of three years.
  • Students have received or will receive an individualized notification indicating how much legacy eligibility remains. Students eligible for legacy status will receive a value between 0  (no legacy status) and 3 years.

New Federal Loan Limits

Graduate Students

  • Annual borrowing limit: $20,500
  • Lifetime borrowing limit: $100,000

Professional Students (e.g., medicine, law, dentistry, pharmacy)*

  • Annual borrowing limit: $50,000
  • Lifetime borrowing limit: $200,000

 

*As of July 1, 2026, the law as defines professional students as those pursuing a degree in Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div., or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).

Impact on Graduate and Professional Students

  • The most notable change for many graduate and professional students is the eventual elimination of the Graduate PLUS Loan program.
  • Some students may be able to complete their programs before their legacy eligibility expires, while others may become subject to the new federal loan limits before graduation. Students may also be able to complete their programs under the new federal limits.
  • Student Financial Assistance and Employment is committed to helping students understand their options and develop a financing plan that supports their educational goals. While no institution can guarantee access to financing, the University is committed to helping students identify and evaluate funding resources that may assist them in completing their academic programs.
  • Financing options may include private educational loans, payment plans, and other financing resources.
  • The University does not want students to be surprised by these changes and encourages students to engage early with Canes Central to discuss their circumstances and explore available options.

Resources

Key Takeaways

  • Graduate PLUS Loans will be eliminated for new borrowers beginning July 1, 2026.
  • Graduate students will face new annual and lifetime federal borrowing limits.
  • Students in higher-cost programs may need to consider additional funding sources beyond federal loans.
  • Early financial planning and understanding total educational costs will become increasingly important.
  • Many currently enrolled students may qualify for legacy status, allowing them to continue borrowing under previous federal loan rules for a limited period while they complete their degree.
  • These changes are the result of federal legislation and will affect graduate and professional students nationwide.

 

Page updated July 9, 2026

 

Top