Key Federal Financial Aid Changes

New federal legislation, the One Big Beautiful Bill Act (OB3), introduces changes to student loans and financial aid.

Understanding Upcoming Changes to Student Loans & Financial Aid

New federal legislation, the One Big Beautiful Bill Act (OB3), introduces changes to student loans and financial aid starting July 1, 2026, beginning with the 2026–2027 award year. These changes* include new federal student loan limits, updated repayment options, and revised eligibility requirements that may affect both current and future students.

No matter where you are in your journey, Ross Med is committed to providing clear guidance and support at every step.

students on campus

The information on this page reflects Ross Med current understanding of these changes, as of March 2026. This page will be updated as the U.S. Department of Education issues implementing regulations and guidance.

How Does the One Big Beautiful Bill Act (OB3) Impact You

Select the options that apply to you to see how this new law will impact you, more than one situation may apply.

You are currently enrolled in the DVM program which is considered a professional program.

What Are The New Loan Limits?

Graduate PLUS loans will no longer be available for new borrowers starting July 1, 2026. Current borrowers eligible for the grandfathering provision can receive Graduate PLUS loans as long as they remain eligible for the grandfathering provision.

Effective July 1, 2026, a student has a limit on the annual and lifetime amount of federal loans they can access. The caps are different for graduate, professional and parent borrowers. Note, existing continuously enrolled students may retain access to current loan limits and rules.

Borrower TypeAnnual LimitAggregate Limit
Professional Students
(e.g., medical, veterinary law)
$50,000$200,000

All Direct Subsidized and Unsubsidized loans have a lifetime limit of $257,500 for all levels of enrollment, undergraduate, graduate and professional regardless of any loans that are repaid or forgiven.

What Can You Do?

If you need additional funding, consider other financing options.

Will there be an exception for current students through a grandfathering provision?

Most current students will qualify for a limited grandfathering provision that delays the start of the new loan limits.

To qualify for this grandfathering provision you must:

  • Enroll and begin courses on or before June 30, 2026
  • Receive a Direct Loan disbursement on or before June 30, 2026 for that program
    • This includes Direct Subsidized, Unsubsidized and PLUS loans

The grandfathering provisions last until the first of these events occurs:

  • Three academic years pass
  • The remaining normal program completion time passes
  • You stop being continuously enrolled

You are enrolled less than full time over a full academic year.

Is My Loan Amount Reduced?

If you enroll less than full time over a full academic year the annual amount of loans you qualify for will be reduced.

Example if you enroll in half the credits required for full-time enrollment, your annual loan amount will be reduced by half.  Note that this change takes effect with the 2026/2027 award year and is not delayed for students eligible for grandfathering.

What Can You Do?

If you need additional funding, consider other financing options.

Will there be an exception for current students through a grandfathering provision?

Most current students will qualify for a limited grandfathering provision that delays the start of the new loan limits.

To qualify for this grandfathering provision you must:

  • Enroll and begin courses on or before June 30, 2026
  • Receive a Direct Loan disbursement on or before June 30, 2026 for that program
    • This includes Direct Subsidized, Unsubsidized and PLUS loans

The grandfathering provisions last until the first of these events occurs:

  • Three academic years pass
  • The remaining normal program completion time passes
  • You stop being continuously enrolled

What Are My New Repayment Options?

Once you graduate or stop enrolling, you’ll choose one of the following repayment options for your federal student loans.

Standard Repayment Plan

  • Fixed payments over 10-25 years (based on debt amount)
  • Pays off loans fastest, lowest total interest

Repayment Assistance Plan (RAP)

  • Income-based payments (minimum $10/month)
  • Forgiveness after 30 years (360 payments)
  • Good for variable income or public service careers

Income-Based Repayment (IBR)

  • Only available if you borrowed prior to July 1, 2026, and do not borrow after July 1, 2026
  • Payments capped at 10% of discretionary income
  • Forgiveness after 20 years

Is My Repayment Plans Changing?

Yes, your repayment plans may be changing.

If you are enrolled in any of the repayment plans listed here:

  • Standard repayment plan
  • Income Based Repayment (IBR) plan
  • Graduated repayment plan
  • Extended repayment plan

You can 1) retain the payment plan, or 2) change to the new standard plan, or 3) enroll in the new Repayment Assistance Plan

If you are enrolled in these repayment plans:

  • PAYE
  • ICR
  • SAVE

You will need to select a new repayment plan, beginning July 1, 2026. You will only be able to enroll in the new standard plan, the new repayment assistance plan or income-based Repayment (IBR).

Reach out to your loan servicer to explore the repayment options available to you.

Are Federal Student Loans Changing?

The Graduate PLUS loan program is unavailable for new borrowers beginning on July 1, 2026. The Professional Direct Unsubsidized loan limits are changing, see below for the new amounts.

Effective July 1, 2026, a student has a limit on the annual and lifetime amount of federal loans they can access. The caps are different for graduate, professional and parent borrowers. Note, existing continuously enrolled students may retain access to current loan limits and rules.

Borrower TypeAnnual LimitAggregate Limit
Professional Students
(e.g., medical, veterinary law)
$50,000$200,000

All Direct Subsidized and Unsubsidized loans have a lifetime limit of $257,500 for all levels of enrollment, undergraduate, graduate and professional regardless of any loans that are repaid or forgiven.

What Can You Do?

If you need additional funding, consider other financing options.

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