The U.S. Department of Education finalized regulations implementing student loan provisions enacted as part of the One Big Beautiful Bill Act (P.L. 119-21). The final rule largely mirrored the proposed rule, on which AAOMS had provided comments.
The regulation establishes a $257,500 lifetime federal borrowing cap, inclusive of undergraduate, graduate and professional loans as well as a $50,000 annual federal borrowing limit for professional students. It also phases out the Graduate PLUS Program, which had allowed graduate and professional students to borrow up to the full cost of their education. The Department clarified from the proposed rule that borrowers who received a Graduate PLUS loan prior to July 1, 2026, will not be subjected to the lifetime borrowing limits if they remain continuously enrolled in the same program at the same institution and complete their studies within three years or the expected time to credential, whichever is less. However, the cap will affect borrowers who decide to take a break from their education or pursue a dual-degree program requiring more than three years. It may also impact individuals who previously borrowed more than $257,500 through the Graduate PLUS program and seek future federal loans for another degree.
This chart offers a useful summary of the final rule’s provisions, which take effect July 1.
