What families planning for college need to know about the ‘One Big Beautiful Bill’ and how we can help   

If you’re a student or family budgeting for college in the coming years, you may be wondering how the “One Big Beautiful Bill” may affect your plans. Historically, federal loans have served as the backbone of college funding. With the new law going into effect, the federal government is paring down its loan program and giving students and schools a short window to adjust. Here’s what to know and how to plan.    

What’s changing?    

Starting July 1, 2026, the lifetime total amount a student can borrow across all types of federal loans (undergraduate and graduate) will be capped at $257,500. Undergraduate federal loan limits will not change. Federal loan limits for graduate students and parents of undergraduate students, however, will undergo changes:   

• The Parent PLUS loan, a credit-based federal loan that many families utilize to cover funding gaps after using federal direct loans, will be capped at $20,000 per year and $65,000 per child.    

• Grad PLUS loans, which grad students could previously use to cover up to the full cost of attendance, will not be available for new borrowers (there will be a short transition window for students already in a program who have already received a Direct Loan for the program by the end of June 2026).    

• After July 1, 2026, annual Federal Direct Unsubsidized Loan limits will be $20,500 for most graduate students and $50,000 for professional students, that is, students pursuing a professional degree. The lifetime aggregate limits will be $100,000 for graduate students and $200,000 for professional students. While the regulations to implement these changes are still in the process of being finalized, negotiators agreed on a revised and slightly expanded definition for a professional degree, which it appears will include the following components:  
  • Signifies both completion of the academic requirements for a given profession and a level of professional skills beyond that normally required for a bachelor’s degree 
  • Is generally at the doctoral level and requires at least six academic years of postsecondary coursework, including at least two at the post-baccalaureate level 
  • Generally requires professional licensure 
  • Is in one of 11 fields that have been accepted by the Department of Education, or a related field, as determined by the Secretary of Education 
    
    Read more about the “One Big Beautiful Bill” and graduate students here.    

What the new law means for families

In the past, federal student loans effectively covered the gap between the cost of school and what students could afford. The new limits mean many students will be left with unmet financial need. And without private lending options or institutional support, these students may be accepted into programs but ultimately unable to attend, or, worse, unable to finish. It’s more important than ever to plan ahead and explore your options.    

The new limits are expected to affect students in high-cost graduate programs such as medicine, dentistry, law, and some MBAs most profoundly. International students and those without a strong credit history may also face gaps.     

How to plan    

It’s a good idea to map out a plan now, especially if you or your student is planning or considering graduate or professional school. Research the cost of attendance for the undergraduate or graduate school you plan to attend and make a budget that reflects the new federal lending limits. Use our calculators to get realistic estimates.    

If there’s a gap between your costs and what you anticipate you can pay under the new limits, it’s time to start exploring your options, including private student loans. Here are some tips: 
   

• Have an honest conversation about money. Many graduate students will need to turn to private student loans to cover funding gaps. Families may want to think ahead about whether and how much they’re helping with graduate school bills and whether they’re willing to cosign on loans. For students with a thin credit history, a U.S. cosigner with strong credit can help unlock better pricing and approval odds. If you’re an international student attending in the U.S., a U.S.-based cosigner is often required.   

• Look closely at interest rates and ranges. Federal loans use one fixed rate each year. Private and nonprofit loans usually post a range. For example, some private lenders advertise rates as low as 2.99%, but on the high end their rates can climb to nearly 15%, depending on the borrower’s credit profile. In some cases, only a small fraction of a percent of qualified applicants might receive that lowest advertised rate. Ask the lender what percentage of applicants qualify for the lowest listed rate.    

• Compare options beyond loans. Some programs are re-examining assistantships, paid clinical placements, fellowships, and tuition guarantees.    
  

How we can help   

Finally, reach out to us if you need help creating a plan to pay for college, comparing funding options, or financing your education. We’re a New Hampshire nonprofit that offers free college-and-career planning services and resources to NH families. We also offer private student loans nationwide, to both undergraduate and graduate students. Our rates are competitive but more consistent than some large lenders, with far less variability between borrowers. We do not charge an origination fee, and we offer helpful benefits including a choice of repayment terms and optional .25% discount for automatic debit.

• The Granite Edvance Private Student Loan is available to students who are NH residents or attending college in NH.  

• The Granite Edvance Parent Loan is available to NH residents who are parents or stepparents of undergraduate students enrolled at least half time at an eligible institution.  

Compare our loan products here.  

• The Granite Edvance Refinance Loan is available to NH residents who want to refinance existing federal and private loans.  

We also offer private student loans for students and families outside NH. Learn about our EdvestinU loan products here.  

Helping students and families cover funding gaps so they can reach their goals is part of our nonprofit mission. Plus, we’re here to support you throughout your journey! 

 Call us at 603-225-6612, email [email protected], or make an appointment at Graniteedvance.org/help.    

Caption information: Attendees at Granite Edvance’s 2024 Destination College event at Saint Anselm College review materials. Photo by Corey Garland.