H. R. 1 (One Big Beautiful Bill Act)

Student loan proration

Students enrolled less than full time (12 credits) will have their student loans adjusted based on actual enrollment levels. If you enroll in fewer than 12 credits, your loan eligibility is reduced to match your actual enrollment level.

Student direct (subsidized/unsubsidized) loan limits

Students may not exceed a total of $57,500 (independent) or $31,000 (dependent) in federal student borrowing. This excludes borrowed private and/or Parent PLUS loan amounts. This federal loan limit remains unchanged under the new legislation. You can see current annual loan limits on the Federal Student Aid website.

Parent PLUS loan limits

Under the new legislation, each dependent student can receive up to the following in Parent PLUS loans:

• $20,000 per academic year
• $65,000 throughout their lifetime

This loan limit applies to the student, regardless of the number of parents who borrow.

Legacy students

Students who received a Parent PLUS Loan disbursement before July 1, 2026, and who remain continuously enrolled in a credentialed program* may continue to receive Parent PLUS Loans** under the current regulations for up to 3 academic years or for the remainder of their program’s standard length, whichever occurs first. Standard length is typically 4 academic years for undergraduate programs.

*The guidance we’ve received so far indicates that undergraduate students will remain eligible for interim legacy provisions if they change their major.

**Current Parent PLUS regulations do not include a lifetime borrowing limit and allow parents to borrow up to the student’s cost of attendance each year after other aid is considered.

Examples

• If a student has been continuously enrolled for three years, the parent may borrow a Parent PLUS Loan for one additional year.
• If a student has been continuously enrolled for two years, the parent may borrow a Parent PLUS Loan for up to two additional years.
• Students who withdraw from their program but return before 2028 will no longer be eligible for legacy provisions, and their Parent’s PLUS loan eligibility will be capped at $65,000, including previously borrowed Parent PLUS loans. Legacy eligibility does not pause and resume.

Student loan proration

Graduate and professional students enrolled less than full time will have their student loans adjusted based on actual enrollment levels. Full-time credits vary per program. 

Student direct (unsubsidized) loan limits

Graduate students can borrow up to the following:

• $20,500 per academic year. This annual limit remains unchanged. 
• $100,000 in graduate-level loans over a lifetime. This excludes undergraduate amounts.

Professional students can borrow up to the following:

• $50,000 per academic year.
• $200,000 in graduate and professional-level loans over a lifetime. This excludes undergraduate amounts.
• Note: We are awaiting guidance from the U.S. Department of Education on which specific University of Minnesota programs are considered ‘professional,’ as this federal definition is changing under the new legislation.

No student may exceed a total of $257,500 in all federal student loan borrowing, excluding Parent PLUS loans, over their lifetime.

Graduate PLUS Loans

Graduate PLUS Loans will be eliminated starting as of  July 1, 2026. Any student starting a new program after June 30, 2026 will not be eligible for Graduate PLUS Loans.

Legacy students

Graduate and professional students can continue borrowing Graduate PLUS loans as “legacy students” under the previous regulations for 3 academic years, or for the remainder of their academic program’s standard length, whichever comes first. The program’s standard length determines the eligibility, not the student’s enrollment level. Time in the program counts toward the standard program length regardless of whether the student was enrolled full‑time or part‑time.

Legacy student eligibility requirements

Students are considered eligible if they meet the following requirements:

• Borrowed at least one federal loan while attending the University of Minnesota prior to July 1, 2026.
• Remain enrolled in the same academic program of study as when that loan was borrowed.

Students can lose eligibility after July 1, 2026 if they do any of the following:

• Change degree level (e.g., from a master’s to a doctoral program)
• Change program of study (e.g., from fine arts to engineering)
  • Change in track or emphasis but within the same program does not affect eligibility (e.g., biomedical engineering to chemical engineering)
• Withdraw from their program, take a leave of absence, or not enroll in a summer term when the program requires summer enrollment. Eligibility does not pause and resume.

Legacy student loan limits

Legacy students can continue borrowing federal loans, including Graduate PLUS loans, up to the following limits:

• $20,500 unsubsidized loans per academic year.
• $138,500 unsubsidized loans for graduate students throughout their lifetime. These limits include undergraduate borrowing.
• $224,000 unsubsidized loans for professional students throughout their lifetime. These limits include undergraduate borrowing.
• Cost of Attendance (COA) in Graduate PLUS loans, minus any other financial aid.

Examples

• If a student is enrolled in a two-year graduate program and has borrowed a Direct Loan during the first year of their program, the student may borrow Graduate PLUS Loans for one additional year to complete the program. The student must be continuously enrolled and complete the program on time.
• If a student is enrolled in a program with a standard length of three years but has been attending half‑time for two years, the student is not eligible for  additional years of Graduate PLUS loans to complete their program at that pace.  Because they have already been enrolled in the program for two years, they have one year of Graduate PLUS legacy eligibility remaining, based on the program’s three‑year standard length.

Repayment plans

The following changes were made to repayment plans:

• Eliminated Saving on a Valuable Education (SAVE) plan.
• Implemented Repayment Assistance Plan (RAP) with rates 1% to 10% of discretionary income.
• Extended forgiveness periods to 30 years.
• Introduced minimum monthly payments.

Public Service Loan Forgiveness (PSLF)

Medical and dental internships and residencies can continue to count towards Public Service Loan Forgiveness (PSLF).