Recent Reconciliation Bill
The recently passed H.R. 1 One Big Beautiful Bill Act includes significant changes to student loan programs, especially for graduate and professional students. While the final rule has now been issued and some details are clear, many nuances are still being finalized by the U.S. Department of Education.
To help you make sense of what’s changing (and what isn’t), we’ve put together a list of frequently asked questions for current students, incoming students, alumni, and those pursuing loan forgiveness. We’ll continue to update this section as more information becomes available.
What We Know
Grad PLUS Loans Are Being Phased Out
Starting July 1, 2026, new borrowers will no longer be eligible for the federal Grad PLUS Loan.
However, if you are enrolled in your current program and have borrowed a Grad PLUS loan before July 1, 2026, you will still be able to access Grad PLUS for up to three additional years of continuous enrollment or until your program ends—whichever comes first.
This “legacy clause” applies only to loans borrowed for your current program. If you borrowed Grad PLUS for a previous program and start a new one after July 1, 2026, you won’t be eligible for the loan in your new program.
New Graduate Loan Limits Are Coming
Starting July 1, 2026:
Professional students (e.g., law, medicine, etc.) may borrow up to $50,000 per year in Unsubsidized Loans, with a lifetime limit of $200,000.
Graduate students in other programs may borrow up to $20,500 per year, with a lifetime limit of $100,000.
If you have borrowed an Unsubsidized Loan in your current program of study, you will continue to qualify for the existing Unsubsidized Loan limits, along with the Grad PLUS loan (if you have also borrowed a Grad PLUS loan in your existing program of study) for an additional three years or until the end of your program, whichever comes first.
Public Service Loan Forgiveness (PSLF) Is Unchanged
There are no changes to PSLF in this bill. Students pursuing careers in qualifying public service roles will still have this option available.
What We Don’t Know (Yet)
What Counts as a “Professional” Program?
Students in the following programs are considered professional students for purposes of federal student loan limits:
- Pharmacy (Pharm.D.)
- Dentistry (D.D.S. or D.M.D.)
- Veterinary Medicine (D.V.M.)
- Chiropractic (D.C. or D.C.M.)
- Law (LL.B. or J.D.)
- Medicine (M.D.)
- Optometry (O.D.)
- Osteopathic Medicine (D.O.)
- Podiatry (D.P.M., D.P., or Pod.D.)
- Theology (M.Div. or M.H.L.)
- Clinical Psychology (Psy.D. or Ph.D.)
Can Students Opt Out of the Grad PLUS Grandfathering?
No, the Department of Education has clarified that students who are otherwise eligible may not opt out of legacy eligibility.
Loan Proration for Part-Time Students
The bill includes a provision to prorate loan amounts based on enrollment. This could mean that part-time students (e.g., those enrolled half-time) would only be eligible for half of the annual loan limit. Students must be enrolled full-time for the entire academic year to qualify for the full annual loan limits.
Major Changes to Repayment Plans
For new loans disbursed after July 1, 2026, the bill eliminates eligibility for current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
Because all federal loans must be repaid under the same repayment plan, students who have borrowed loans prior to July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans.
In addition to the Repayment Assistance Plan (RAP), students may also select a Standard-Tiered plan. The length of repayment is tied to the total amount borrowed.
Current borrowers with no new loans disbursed on or after July 1, 2026, can continue to enroll in and switch between the current 10-year Standard, Graduated, Extended, Income Contingent (ICR, PAYE, or REPAYE), and Income Based Repayment (IBR) plans until June 30, 2028. They can also remain in the 10-year Standard, Graduated, Extended, or IBR plan until their loans are paid in full. However, if they are enrolled in ICR, PAYE, or SAVE as of June 30, 2028, they will need to switch to either the tiered Standard, RAP, or IBR plan. Borrowers who fail to make a selection will be automatically enrolled in the RAP. Current borrowers in repayment can also opt in to the RAP at any point after July 1, 2026.
What’s Next?
The Financial Aid Office is closely tracking these changes to help students and alumni understand what they may mean for their financial aid. As soon as we have more concrete answers from the Department of Education and NASFAA, we’ll post updates.
The National Association of Student Financial Aid Administrators has put together a helpful chart that reviews all the provisions of the reconciliation bill. (PDF)
We understand this is a lot to take in, and we’re here to support you as we all learn more.
FAQs
I’m currently enrolled as a student at the Stritch School of Medicine. What should I expect?
If you’ve borrowed a Grad PLUS Loan for your current program before July 1, 2026, you are eligible for the Legacy Clause under the existing rules. This means you can continue borrowing Grad PLUS loans (and Unsubsidized Loans up to current limits) for up to three more years or until you are no longer eligible for the interim exception, whichever comes first. Eligibility for the interim exception will end once a student has completed four academic years of enrollment at the Stritch School of Medicine, regardless of their remaining degree requirements at that time. The four years include any repeated semesters or extensions for remediation or additional dedicated study.
You do not need to take any immediate action, but be aware that starting July 1, 2026, new rules will apply to students who haven’t borrowed by then.
I’ll be starting my program at Stritch after July 1, 2026. What changes apply to me?
You will not be eligible for the Grad PLUS Loan. Instead, the amount you can borrow is up to $50,000 per year, with a $200,000 lifetime limit.
I’ve already graduated and am in repayment. Do these changes affect me?
Yes, the changes to the federal repayment plan options will affect all borrowers. Current borrowers with no new loans disbursed on or after July 1, 2026, can continue to enroll in and switch between the current 10-year Standard, Graduated, Extended, Income Contingent (ICR, PAYE, or REPAYE), and Income Based Repayment (IBR) plans until June 30, 2028. They can also remain in the 10-year Standard, Graduated, Extended, or IBR plan until their loans are paid in full. However, if they are enrolled in ICR, PAYE, or SAVE as of June 30, 2028, they will need to switch to either the tiered Standard, RAP, or IBR plan. Borrowers who fail to make a selection will be automatically enrolled in the RAP. Current borrowers in repayment can also opt in to the RAP at any point after July 1, 2026.
I’m working toward Public Service Loan Forgiveness (PSLF). Is that still available?
Yes, the PSLF program remains unchanged in this legislation. However, future changes may be possible, including under Executive Orders.
If you are already pursuing PSLF—or plan to—you can continue making qualifying payments under an eligible repayment plan. Just be sure to certify your employment and remain in good standing. Future changes to loan repayment options (like RAP) may affect how payments are counted, so keep records and watch for updates.
When will we know more?
Now that the bill has passed and final rules and regulations will be set through the Negotiated Rulemaking Process, the university is working to understand the final rule and implement the changes in our system. Students can reach out to the Financial Aid Office for any questions regarding their eligibility under these changes.
The recently passed H.R. 1 One Big Beautiful Bill Act includes significant changes to student loan programs, especially for graduate and professional students. While the final rule has now been issued and some details are clear, many nuances are still being finalized by the U.S. Department of Education.
To help you make sense of what’s changing (and what isn’t), we’ve put together a list of frequently asked questions for current students, incoming students, alumni, and those pursuing loan forgiveness. We’ll continue to update this section as more information becomes available.
What We Know
Grad PLUS Loans Are Being Phased Out
Starting July 1, 2026, new borrowers will no longer be eligible for the federal Grad PLUS Loan.
However, if you are enrolled in your current program and have borrowed a Grad PLUS loan before July 1, 2026, you will still be able to access Grad PLUS for up to three additional years of continuous enrollment or until your program ends—whichever comes first.
This “legacy clause” applies only to loans borrowed for your current program. If you borrowed Grad PLUS for a previous program and start a new one after July 1, 2026, you won’t be eligible for the loan in your new program.
New Graduate Loan Limits Are Coming
Starting July 1, 2026:
Professional students (e.g., law, medicine, etc.) may borrow up to $50,000 per year in Unsubsidized Loans, with a lifetime limit of $200,000.
Graduate students in other programs may borrow up to $20,500 per year, with a lifetime limit of $100,000.
If you have borrowed an Unsubsidized Loan in your current program of study, you will continue to qualify for the existing Unsubsidized Loan limits, along with the Grad PLUS loan (if you have also borrowed a Grad PLUS loan in your existing program of study) for an additional three years or until the end of your program, whichever comes first.
Public Service Loan Forgiveness (PSLF) Is Unchanged
There are no changes to PSLF in this bill. Students pursuing careers in qualifying public service roles will still have this option available.
What We Don’t Know (Yet)
What Counts as a “Professional” Program?
Students in the following programs are considered professional students for purposes of federal student loan limits:
- Pharmacy (Pharm.D.)
- Dentistry (D.D.S. or D.M.D.)
- Veterinary Medicine (D.V.M.)
- Chiropractic (D.C. or D.C.M.)
- Law (LL.B. or J.D.)
- Medicine (M.D.)
- Optometry (O.D.)
- Osteopathic Medicine (D.O.)
- Podiatry (D.P.M., D.P., or Pod.D.)
- Theology (M.Div. or M.H.L.)
- Clinical Psychology (Psy.D. or Ph.D.)
Can Students Opt Out of the Grad PLUS Grandfathering?
No, the Department of Education has clarified that students who are otherwise eligible may not opt out of legacy eligibility.
Loan Proration for Part-Time Students
The bill includes a provision to prorate loan amounts based on enrollment. This could mean that part-time students (e.g., those enrolled half-time) would only be eligible for half of the annual loan limit. Students must be enrolled full-time for the entire academic year to qualify for the full annual loan limits.
Major Changes to Repayment Plans
For new loans disbursed after July 1, 2026, the bill eliminates eligibility for current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
Because all federal loans must be repaid under the same repayment plan, students who have borrowed loans prior to July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans.
In addition to the Repayment Assistance Plan (RAP), students may also select a Standard-Tiered plan. The length of repayment is tied to the total amount borrowed.
Current borrowers with no new loans disbursed on or after July 1, 2026, can continue to enroll in and switch between the current 10-year Standard, Graduated, Extended, Income Contingent (ICR, PAYE, or REPAYE), and Income Based Repayment (IBR) plans until June 30, 2028. They can also remain in the 10-year Standard, Graduated, Extended, or IBR plan until their loans are paid in full. However, if they are enrolled in ICR, PAYE, or SAVE as of June 30, 2028, they will need to switch to either the tiered Standard, RAP, or IBR plan. Borrowers who fail to make a selection will be automatically enrolled in the RAP. Current borrowers in repayment can also opt in to the RAP at any point after July 1, 2026.
What’s Next?
The Financial Aid Office is closely tracking these changes to help students and alumni understand what they may mean for their financial aid. As soon as we have more concrete answers from the Department of Education and NASFAA, we’ll post updates.
The National Association of Student Financial Aid Administrators has put together a helpful chart that reviews all the provisions of the reconciliation bill. (PDF)
We understand this is a lot to take in, and we’re here to support you as we all learn more.
FAQs
I’m currently enrolled as a student at the Stritch School of Medicine. What should I expect?
If you’ve borrowed a Grad PLUS Loan for your current program before July 1, 2026, you are eligible for the Legacy Clause under the existing rules. This means you can continue borrowing Grad PLUS loans (and Unsubsidized Loans up to current limits) for up to three more years or until you are no longer eligible for the interim exception, whichever comes first. Eligibility for the interim exception will end once a student has completed four academic years of enrollment at the Stritch School of Medicine, regardless of their remaining degree requirements at that time. The four years include any repeated semesters or extensions for remediation or additional dedicated study.
You do not need to take any immediate action, but be aware that starting July 1, 2026, new rules will apply to students who haven’t borrowed by then.
I’ll be starting my program at Stritch after July 1, 2026. What changes apply to me?
You will not be eligible for the Grad PLUS Loan. Instead, the amount you can borrow is up to $50,000 per year, with a $200,000 lifetime limit.
I’ve already graduated and am in repayment. Do these changes affect me?
Yes, the changes to the federal repayment plan options will affect all borrowers. Current borrowers with no new loans disbursed on or after July 1, 2026, can continue to enroll in and switch between the current 10-year Standard, Graduated, Extended, Income Contingent (ICR, PAYE, or REPAYE), and Income Based Repayment (IBR) plans until June 30, 2028. They can also remain in the 10-year Standard, Graduated, Extended, or IBR plan until their loans are paid in full. However, if they are enrolled in ICR, PAYE, or SAVE as of June 30, 2028, they will need to switch to either the tiered Standard, RAP, or IBR plan. Borrowers who fail to make a selection will be automatically enrolled in the RAP. Current borrowers in repayment can also opt in to the RAP at any point after July 1, 2026.
I’m working toward Public Service Loan Forgiveness (PSLF). Is that still available?
Yes, the PSLF program remains unchanged in this legislation. However, future changes may be possible, including under Executive Orders.
If you are already pursuing PSLF—or plan to—you can continue making qualifying payments under an eligible repayment plan. Just be sure to certify your employment and remain in good standing. Future changes to loan repayment options (like RAP) may affect how payments are counted, so keep records and watch for updates.
When will we know more?
Now that the bill has passed and final rules and regulations will be set through the Negotiated Rulemaking Process, the university is working to understand the final rule and implement the changes in our system. Students can reach out to the Financial Aid Office for any questions regarding their eligibility under these changes.