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One Big Beautiful Bill reshapes student aid: Grad PLUS eliminated for new borrowers, Parent PLUS capped
Summary
The One Big Beautiful Bill Act, signed in December, restructures federal student aid: Grad PLUS loans will be phased out for new borrowers starting in July, Parent PLUS borrowing will be capped at $20,000 per year ($65,000 aggregate), repayment plans consolidated, and Pell eligibility expanded to short workforce programs.
Co-hosts Tiffany De Van and Diana Brown explained changes in federal student aid stemming from the One Big Beautiful Bill Act (OBB3), which was signed into law in December and begins to take effect this summer.
The most immediate change for many borrowers is the end of Grad PLUS loans for new borrowers. The hosts said graduate and professional (Grad PLUS) loans "are being eliminated as of July 1 for new borrowers," while students who already hold Grad PLUS loans will have a limited transition period to borrow under existing terms for up to three more years. The change will likely leave some graduate students searching for private loans or alternative funding.
The law also alters Parent PLUS borrowing. The program now imposes an annual cap of $20,000 per student and an aggregate limit of $65,000 per dependent…
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