ONE BIG BEAUTIFUL BILL ACT
On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (OBBBA), resulting in major changes to federal programs, such as federal student loan programs.
We realize many Tiger families have concerns about how these changes might affect their ability to pay for college, so we have provided a summary of the changes below, as well as FAQ for Undergraduate Students, Graduate Students, and Parents.
This information is based on the current understanding of new rules and regulations as they relate to federal student financial aid and could change with little notice. LSU will update this page as additional guidance is received from the U.S. Department of Education. For the most current information, visit studentaid.gov.
EFFECTIVE JULY 1, 2026:
GRADUATE PLUS LOAN PROGRAM
The Graduate PLUS Loan program will be discontinued and will not be available for new borrowers (anyone who has not had a federal student loan disbursed prior to July 1, 2026).
LEGACY PROVISION: Students with a Federal Direct Loan disbursed before July 1, 2026, may continue
to borrow under existing Graduate PLUS Loan rules for up to 3 more academic years
or until their program ends – whichever comes first.
PARENT PLUS LOAN LIMITS
Parents of new students may borrow up to $20,000 per academic year, with a $65,000 lifetime maximum per student.
LSU will provisionally package Parent PLUS loans at $15,000 per year to help families preserve eligibility across four years, up to the lifetime limit. Parents may choose to apply for the full $20,000 annual maximum at studentaid.gov. However, families are encouraged to borrow carefully, as borrowing the maximum amount each year may result in exhausting eligibility before the student completes their degree.
LEGACY PROVISION: Parents who borrowed before July 1, 2026 may continue borrowing under existing Parent PLUS Loan rules which allows for a PLUS
loan up to the Cost of Attendance for up to 3 more academic years or the student completes their program – whichever comes first.
STUDENT LOAN BORROWING LIMITS
|
|
YEARLY LIMIT |
LIFETIME LIMIT |
|---|---|---|
|
UNDERGRADUATES |
NO CHANGE |
NO CHANGE |
|
GRADUATE DEGREES (UNSUBSIDIZED ONLY) |
$20,500
|
$100,000 (EXCLUDES UNDERGRADUATE BORROWING) |
|
PROFESSIONAL DEGREES LAW, VETERINARY MEDICINE, CLINICAL PSYCHOLOGY (UNSUBSIDIZED ONLY) |
$50,000
|
$200,000 (EXCLUDES UNDERGRADUATE BORROWING) |
|
TOTAL LIFETIME BORROWING LIMITS FOR ALL FEDERAL STUDENT LOANS (EXCLUDING PARENT PLUS LOANS BORROWED ON YOUR BEHALF) |
N/A |
$257,500 |
ENROLLMENT STATUS
If enrollment is less than full-time, your loan eligibility (annual amount) will be prorated (reduced).
Examples:
UNDERGRADUATE STUDENT
A dependent undergraduate student enrolls in 6 credit hours in the Fall semester and 6 credit hours in the Spring semester, for a total of 12 credit hours for the academic year.
Annual loan eligibility is prorated based on enrollment intensity. In this case:
12 (credit hours) ÷ 24 = 0.5000
0.5000 x $7,500 (senior level loan limit) = $3,750.
In this example, the student would be eligible to receive $3,750 in federal student loans for the academic year. Under prior regulations, the student could have received the full $7,500 annual loan limit, even when enrolled at this level.
GRADUATE STUDENT
A graduate student enrolls in 6 credit hours in the Fall semester and 6 credits hours in the Spring semester, for a total of 12 credit hours for the academic year.
Annual loan eligibility is prorated based on enrollment intensity. In this case:
12 (credit hours) ÷ 18 = 0.6667
0.6667 x $20,500 = $13,667
The student would be eligible to receive $13,667 in Direct Unsubsidized Loan funds for the academic year. Under prior regulations, the student could have received the full $20,500 annual loan limit, even when enrolled at this level.
FREQUENTLY ASKED QUESTIONS
For the purposes of this FAQ, the following definitions apply:
• Disbursement: Fund(s) have been applied to your student account.
• New borrowers: Anyone who has not had a federal student loan disbursed prior to July 1, 2026.
• Less than half time: Any undergraduate student attempting less than 6 credits in each term. Different
credit levels may exist for graduate and professional students
UNDERGRADUATE STUDENTS FAQ
No. Your current summer 2025/fall 2025/spring 2026 financial aid package will not be impacted by this new law.
Your 2025-26 Pell Grant award will not change. Congress provided an additional $10 billion to make sure Pell recipients were fully-funded for the 2025-26 school year.
Additional action will need to be taken by Congress to secure funding for 2026-27 and beyond.
Campus-based programs including FSEOG have been funded for the current 2025-26 school year.
We are hopeful that this program will be part of Congressional appropriations for the 2026-27 school year and beyond.
Campus-based progress including FWS have been funded for the current 2025-26 school year.
We are hopeful that this program will be part of the Congressional appropriations for the 2026-27 school year and beyond.
Yes. Under current federal rules and regulations, eligible undergraduate students with demonstrated financial need can still qualify for a subsidized loan for the current aid year and beyond.
Yes. Under current federal rules and regulations, undergraduate students can still qualify for an unsubsidized loan for the current aid year and beyond.
Beginning with the 2026-27 school year, students enrolled less than full time may have their loans adjusted accordingly.
Students enrolled less than half time are not eligible for federal student loan disbursement.
GRADUATE AND PROFESSIONAL STUDENTS FAQ
No. Your current summer 2025/fall 2025/spring 2026 financial aid package will not be impacted by this new law.
Prior to July 1, 2026: Eligible graduate and law students can borrow up to $20,500 annually. Clinical Psychology students can borrow up to $33,000 annually. Veterinary Medicine students can borrow up to $40,500 annually.
July 1, 2026 and Beyond: Eligible graduate students can borrow up to $20,500 annually. Clinical Psychology, Law, and Veterinary Medicine students can borrow up to $50,000 annually.
Prior to July 1, 2026: Eligible graduate and law students have a lifetime aggregate limit of $138,500. Eligible medical students can borrow up to $224,000.
These lifetime amounts include any subsidized and unsubsidized loans borrowed at the undergraduate level.
July 1, 2026 and Beyond: Eligible graduate students have a lifetime aggregate limit of $100,000. Clinical Psychology, Law, and Veterinary Medicine students have a lifetime aggregate limits of $200,000.
These lifetime amounts do not include any subsidized and unsubsidized loans borrowed at the undergraduate level.
Yes. If a borrower has a federal student loan (Direct Unsubsidized or Graduate PLUS) disbursed in their current academic program before July 1, 2026, the student can borrow under current annual and lifetime loan limits for three academic years or the remainder of their expected time to graduation, whichever is less.
For financial aid purposes at LSU, a ‘professional’ student is defined as a student earning a degree in Veterinary Medicine (D.V.M.), Law (J.D.), or Clinical Psychology (Ph.D).
There is no change in the way LSU designates a professional student for financial aid purposes prior to the OBBBA.
No. Current guidance says that students who withdraw or take a leave from their program will lose access to the legacy provisions immediately.
There are no extensions to the three-year grandfathering provisions so at the end of that period you will be subject to the new annual and aggregate loan limits.
Prior to July 1, 2026: If a borrower has a federal loan (Federal Unsubsidized or Grad PLUS) disbursed for their current academic program before July 1, 2026, the student can continue to borrow for three academic years or the remainder of their expected time to graduation, whichever is less.
July 1, 2026 and Beyond: New graduate and professional student borrowers are not eligible for the Graduate PLUS Loan program.
Yes. Federal loans may be prorated based on enrollment below full time.
We are still waiting for additional guidance from the U.S. Department of Education.
Graduate and professional students continue to have access to private students loans from a variety of lenders.
Please visit our private loan page to look at ways to find the correct lender for you.
PARENTS FAQ
Prior to July 1, 2026: Eligible parents of dependent undergraduate students can borrow Parent PLUS Loan funds up to the full Cost of Attendance, minus any other financial aid, to help finance their student’s education.
July 1, 2026 and Beyond: Eligible parents of dependent undergraduate students can borrow up to $20,000 annually in Parent PLUS Loan to help finance their student’s education.
Prior to July 1, 2026: There is no lifetime borrowing limit for parents of students with Parent PLUS Loans who have borrowed under the Parent PLUS Loan program prior to July 1, 2026.
July 1, 2026 and Beyond: New parent borrowers have a $65,000 lifetime aggregate limit per dependent student.
Parents and their students may research and apply for private student loans if they require additional funding.
Your financial aid package can contain both a Parent PLUS Loan and a private loan, but your total financial aid can never exceed the overall Cost of Attendance.
Our private loan page will provide you ways to find the correct lender for you.
Yes. If a student or parent borrower has any federal loans disbursed before July 1, 2026, the parent can continue to borrow under pre-July 1, 2026, annual and lifetime Parent PLUS Loan limits for three academic years or the student’s completion of their degree, whichever is less.
No. Current guidance says that students who withdraw or take a leave from their program will lose access to the legacy provisions immediately.
There are no extensions to the three-year grandfathering provisions, so at the end of that period you will be subject to the new annual and aggregate loan limits.
Contact financialaid@lsu.edu or 225-578-3103.
PLEASE NOTE: LSU does not have the ability to grant exceptions to federal regulations, including those concerning enrollment, legacy provisions or federal loan eligibility.