FEDERAL LOAN OPTIONS
Federal Student Loan Changes Under the One Big Beautiful Bill Act (OBBB)
The One Big Beautiful Bill Act (OBBB), enacted in July 2025, introduces significant updates to federal student loan programs. While these changes do not affect borrowing for the 2025–2026 academic year, most provisions will take effect beginning July 1, 2026.
Villanova University Charles Widger School of Law is continuing to monitor federal guidance and will update this page as additional details become available.
Federal Loans
Please review your rights and responsibilities in borrowing federal student loans in the U.S. Department of Education's Student Aid website.
Basic Student Eligibility Criteria
In order to receive Federal student aid, you must meet the basic eligibility requirements. For a comprehensive review of basic student eligibility requirements, please visit studentaid.gov.
Eligibility Formulas
Eligibility for need-based financial aid (i.e. scholarships and Federal Work-Study) is determined by the first formula; non need-based aid (i.e. Federal Unsubsidized Stafford Loans, Federal Graduate PLUS Loans, private loans) by the second formula.
| Formula 1 | Formula 2 |
|---|---|
| Cost of Education Minus Student Contribution Equals Eligibility for Need-Based Aid |
Cost of Education |
Notice of Eligibility
Once all of the necessary forms have been received by the Office of Financial Aid and your information reviewed, we will notify you of your eligibility for funds by an Estimated Award Offer, listing the aid for which you are eligible. Aid is only processed for returning students and accepted incoming students. Financial aid information received from students who have not been admitted will be held until such time as they are admitted. Notification of any scholarships may come separately.
Federal Direct Loan Options
Beginning July 1, 2026:
- Graduate programs:
- $20,500 annual limit
- $100,000 aggregate limit
- Professional programs (including law):
- $50,000 annual limit
- $200,000 aggregate limit
- Students who pursue both graduate and professional study are subject to a combined maximum of $200,000 for those programs.
Federal Student Loan Changes
What We Know: Graduate and Professional Students
Grad PLUS Loans
- Grad PLUS Loans will no longer be available to new borrowers as of July 1, 2026.
- A “new borrower” is defined as a student who has not received a federal loan (Direct Unsubsidized or Grad PLUS) for their current program prior to that date.
Transition (Legacy) Provision:
Students who borrowed a federal loan for their current program before July 1, 2026, may continue to access Grad PLUS Loans under current rules for up to three academic years or until program completion, whichever occurs first.
Lifetime Borrowing Limit
- A new overall federal student loan lifetime limit of $257,500 will apply across graduate, and professional study, which includes loans borrowed as an undergraduate student.
- This total includes Direct Loans and Grad PLUS Loans borrowed by the student, but excludes Parent PLUS Loans.
Transition (Legacy) Provision:
Students who borrowed for their current program prior to July 1, 2026, may continue under existing lifetime limits for up to three academic years or until program completion, whichever is sooner.
Loan Proration
- Students enrolled less than full-time will have their federal loan eligibility reduced proportionally based on their enrollment level.
- Additional implementation guidance is expected.
- May continue to access existing repayment plans, including:
- Standard
- Graduated
- Extended
- Income-Based Repayment (IBR)
- May also choose to enroll in RAP once available.
- Borrowers currently using income-driven repayment plans may remain in those plans or switch between them through July 1, 2028, at which point transition requirements may apply.
Repayment Changes
Borrowers with New Loans on or After July 1, 2026
- Two repayment options will be available:
- A revised standard repayment plan
- A new income-based option, the Repayment Assistance Program (RAP)
- All federal loans must be repaid under a single repayment plan.
- Borrowers who do not select a plan will be automatically placed into the standard repayment plan.
For more information, please refer to the following: