The U.S. Department of Education has announced changes to Federal Student Aid programs as part of the One Big Beautiful Bill (OBBBA), which was signed into law on July 4, 2025. Below is a summary of these updates for graduate students.

*Please refer to FAQs here if additional support needed.

Federal Direct Unsubsidized Loan Reductions:

Direct Unsubsidized Loan amounts will be based on the number of credits you are taking.

Example:

If you enrolled in 6 credits during the Summer, 9 credits in the Fall, and 5 credits in the Spring, you would be considered half-time status for the academic year and eligible to borrow 74% of the full annual loan amount (6 + 9 + 5 = 20, 20 ÷ 27 = 74%). 

Student Financial Services would use 74% to calculate the maximum annual loan amount you would be eligible for and divide it equally across your three terms. ($20,500.00 x 74% = $15,170.00, $15,170.00 ÷ 3 terms = $5,057.00 per term). 

Updated Direct Loan Lifetime Borrowing Limits:

Beginning July 1, 2026, new federal loan borrowers will have updated lifetime borrowing limits. Relay graduate students who have borrowed Direct Unsubsidized Loans in their current program of study will be considered “legacy” borrowers and not subject to these new limits.

• Graduate students may be eligible for an increased $200,000.00 lifetime limit, from $100,000.00, if previously enrolled in a Professional degree program, or are actively enrolled in Graduate and Professional degree programs at the same time and more than 51% of credit hours are from the Professional degree program.

• The new overall borrowing limit includes all loan amounts, including any that have been repaid, cancelled, forgiven, or discharged. This goes into effect for all student borrowers, whether “legacy” or “new.”