Financial aid impacts of the One Big Beautiful Bill Act
ASU is committed to providing you clear answers to changes in federal policy
Background
In 2025, the U.S. Department of Education’s RISE negotiated rulemaking committee reached consensus on the One Big Beautiful Bill Act student loan provisions, with final regulatory text expected in early 2026.
What that means
New One Big Beautiful Bill Act rules include changes to student loans that are funded by the federal government. These changes are expected to go into effect on July 1, 2026, and thus, impact students who newly enroll at ASU for fall 2026.
The One Big Beautiful Bill Act introduced the following changes to federal student loans.
Changes with the new One Big Beautiful Bill Act provisions vs. legacy provisions
The updates to federal financial aid rules do not apply to everyone in the same way. Students who already received federal loans before July 1, 2026, may continue some policies under legacy rules, while students borrowing for the first time after that date will follow the new provisions under the One Big Beautiful Bill Act.
Use the information below to understand which rules apply to you.
Frequently Asked Questions
General FAQs
July 1, 2026.
The changes are the result of the One Big Beautiful Bill Act, which was passed by Congress and is scheduled to take effect on July 1, 2026.
ASU recommends responsible borrowing and always encourages students to speak with us to understand their loan options and the impact that borrowing will have on their lives after graduation.
Regardless of the forthcoming changes, ASU will continue to counsel students looking for ways to finance their education about all the options available to them.
The vast majority of Pell eligible students were not included in the One Big Beautiful Bill Act.
ASU is closely monitoring these rule changes and is committed to keeping current and prospective students informed. These proposed rule changes do not impact our curriculum, nor do they reflect the quality of the degree you earn while attending ASU.
Our faculty and staff are dedicated to expanding access to our degree programs. We are working to help you confidently pursue your degree and will work with you to understand these federal rules and how they may impact borrowing limits and loan types.
Loan FAQs
If you are currently enrolled at ASU and received federal student loans, you qualify for legacy provisions for up to three academic years or through expected program completion (based on the school’s official program length). This protection allows you to maintain the annual and aggregate loan limits of federal financial aid you are receiving until graduation.
If you are enrolled less than full time, your federal student loan amounts will be prorated based on your enrollment status.
Annual borrowing limits | Aggregate borrowing limits | ||||
Student by borrowing year | Student population | GradPLUS Loan | Unsubsidized Loan | GradPLUS Loan | Unsubsidized Loan |
Current borrowers* | Graduate and professional | Up to total cost of attendance minus any financial aid | $20,500 | No limit | $138,500; the graduate aggregate limit includes all federal loans received for undergraduate study |
New borrowers starting July 1, 2026 | Graduate | Eliminated | $20,500 | Eliminated | $100,000 |
Professional** | Eliminated | $50,000 | Eliminated | $200,000 | |
*Legacy provision: If a borrower has a Direct Loan made before July 1, 2026, while enrolled in a credential program, the borrower can continue to borrow from the program for 3 academic years or the remainder of their expected time to credential, whichever is less. | |||||
**The definition of professional programs is being determined through negotiated rulemaking. Final information to be shared in spring 2026. | |||||
If you have received federal student loans as a borrower before July 1, 2026, you would fall under legacy provisions for PLUS loan eligibility, even if your parent did not borrow a PLUS loan prior.
You may keep or switch among current income-driven repayment plans until the federal transition window closes (mid to late 2028). After that, older plans are phased out for most borrowers, and future repayment must use Repayment Assistance Plan, Tiered Standard or Income Based Repayment (if eligible).
Graduate student FAQs
For new borrowers, all graduate degrees will be impacted by the elimination of the Graduate PLUS loan program, which previously allowed students to borrow up to the cost of attendance. However, students in professional programs are able to borrow more throughout their lifetime. A professional program is currently defined as an advanced degree that typically requires professional licensure to work in the field. These programs:
- Result in a professional degree that reflects both academic achievement and the development of professional skills beyond the bachelor’s level;
- Are generally at the doctoral level and require at least six years of postsecondary education, including at least two years of post-baccalaureate coursework;
- Generally require professional licensure to begin practicing in the field; and
Are classified under specific program CIP codes aligned with recognized professional fields.
Professional programs with a $200,000 loan limit | Programs with a $100,000 loan limit |
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If you’re currently enrolled in a graduate program, these changes will not affect you, so long as you remain in your current program until completion. The rules, as they currently stand, will be implemented on July 1, 2026, and will not be applied retroactively. You’ll be able to borrow up to the total cost of your degree program.
These rule changes only impact the definition of a degree and its status under financial aid guidelines and are not a reflection of the quality or rigor of degree programs at ASU.
If you're planning to enroll in a graduate program on or after July 1, 2026, you will be under the new loan rules, unsubsidized loans only and a borrowing cap based on your degree program.
These rule changes only impact the definition of a degree and its status under financial aid guidelines and are not a reflection of the quality or rigor of degree programs at ASU.
Legacy provision FAQs
You may be considered a legacy student if both of the following apply to you:
- You were officially enrolled in your current program by June 30, 2026
- You had at least one Direct Loan disbursement for that program before July 1, 2026
Admission or intent to enroll is not enough — at least one actual financial aid disbursement must occur.
Legacy protections last for the shorter of these options:
- Three academic years
- The remaining “expected time to credential” (your program’s normal length at ASU)
An approved leave of absence will end your eligibility for legacy status. If you withdraw from all courses or take a leave of absence, you will be subject to the new provisions when you return.
To remain eligible for legacy provisions, you must stay continuously enrolled.
If you are considering taking a leave of absence or leaving ASU, we encourage you to contact Financial Aid and Scholarship Services before making a decision so we can discuss how it may affect your eligibility.