Graduate and Post-bacc Financial Aid

Federal Financial Aid Changes Under the One Big Beautiful Bill Act (OB3)

In July 2025, Congress enacted the One Big Beautiful Bill Act (OB3), a major federal budget law that includes significant changes to the federal student loan and financial aid systems. Most of the provisions will take effect for loans disbursed on or after July 1, 2026, impacting students beginning in the 2026-27 award year. 

What Is Changing

New Federal Loan Limits

OB3 establishes new borrowing limits for federal student loans:

• Graduate PLUS Loans will be eliminated for new borrowers for loans first disbursed on or after July 1, 2026. 
• Direct Unsubsidized Loan limits for graduate and professional students are also changing:
  • Graduate programs: $20,500 annual limit; $100,000 aggregate loan limit
  • Professional programs: $50,000 annual limit; $200,000 aggregate loan limit
• A new lifetime borrowing limit of $257,500 will apply across all federal student loans, including any undergraduate and graduate borrowing such as:
  • Direct Subsidized Loan
  • Direct Unsubsidized Loan
  • Direct Grad PLUS Loan (Parent PLUS Loan excluded)

Once a student reaches the $257,500 lifetime limit, they are no longer eligible to receive additional federal student loan funding.

Legacy Borrowing Protections

Students who borrow federal loans before July 1, 2026 retain legacy borrowing protections:

• Current borrowing limits (annual and lifetime) remain available for a period of time depending on enrollment and program length.
• Graduate students who borrowed Federal Direct Loans before July 1, 2026 may still be eligible for Graduate PLUS loans under existing rules for a limited time. 

Enrollment Status and Loan Eligibility

OB3 introduces changes to how enrollment status affects federal loan eligibility:

• Students enrolled less-than-full-time may see their loan amounts prorated based on enrollment percentage (e.g., half-time enrollment may result in up to a 50 % reduction in maximum federal borrowing). 

What This Means for Tufts Students

Because these changes will affect how much students and families can borrow through federal loan programs after July 1, 2026, it’s important to plan ahead:

• Understand future federal borrowing limits: New annual and lifetime loan caps may reduce the amount of federal aid available, particularly for graduate and professional programs.
• Review your credit profile: Students and families should consider reviewing their credit reports and learning how credit history may affect eligibility, interest rates, and terms for private student loans, which may become a more important financing option under OB3.
• Learn about private loan readiness: Understanding how credit scores, co-signers, and debt-to-income ratios factor into private loan approval can help families prepare if additional funding is needed.
• Consider legacy loan eligibility: Current students may want to explore borrowing a federal student before May 1, 2026 to establish eligibility under existing (“legacy”) federal loan rules prior to the OB3 changes taking effect.
• Explore all funding options: Students are encouraged to balance federal loans with institutional scholarships, grants, work-study, and other available resources.

The U.S. Department of Education continues to issue guidance related to OB3 implementation. Tufts Financial Aid Services will share updates as more details become available.

Important Disclaimer: The content on this page is provided for informational purposes to assist Tufts students and families in understanding federal student aid programs and related changes. This information reflects our current interpretation of available federal guidance but does not represent official federal policy. Students and families should consult official U.S. Department of Education resources for authoritative information. Please visit StudentAid.gov for the most current guidance.

For additional resources published by Federal Student Aid (FSA) and national associations, please visit:

• National Association of Independent Colleges & Universities (NAICU)
• National Association of Student Financial Aid Administrators
• One Big Beautiful Bill Act Updates (Federal Student Aid)
• Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act (GEN-25-04)

Contact Us

Before reaching out, we recommend thoroughly reviewing our website, as it contains answers to many commonly asked questions. If you still need assistance, your first point of contact should be the Student Services team. These specialists are trained to answer a wide range of questions related to financial aid and billing. If your question requires further support, they will refer you to your assigned financial aid counselor.

Email Consent

Please be aware that the University’s primary method of communicating with students is through email. We will do our best to limit the number of emails that you receive from us, but in many cases, including information about registration, campus emergencies, special events, and Commencement, email may be the only communication used. It is your responsibility to check your Tufts email account regularly. Please do not forward your Tufts email to any other account (Gmail, etc.) because forwarding may prevent your emails from being delivered.

If you do not give your consent to receive financial aid information via email, please email studentservices@tufts.edu.