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One Big Beautiful Bill Act

With the passing of the One Big Beautiful Bill Act, significant changes have been made to federal graduate student loans that will impact graduate and professional students. 

Beginning July 1, 2026, graduate students will fall under different federal loan programs and borrowing limits depending on when they begin their program of study:

1. New Students

   • Students who begin their program on or after July 1, 2026, will be subject to the updated federal loan programs, limits, and terms established under the new legislation as outlined below.

2. Legacy Provision Students

   • Students who began their program prior to July 1, 2026, fall under Legacy provisions. These students will continue under the current federal loan structure for up to three academic years or for the remainder of their current program, whichever is shorter. Throughout this page, we have clearly noted where Legacy provisions differ and what applies to these students.

In this , SoFi breaks down exactly what is changing, who is impacted, and what these updates mean for graduate students and their families. 

Loan Types

• Federal Direct Loans
• Private/Alternative Loans
• Grad PLUS Loans (Legacy Students Only)

Federal Direct Loans

Federal Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education for eligible students to help cover the cost of higher education.

Unsubsidized Loans:

• Require at least half-time enrollment (3 credits)
•  Amounts will be prorated based on enrollment status in direct proportion to the percentage of full-time enrollment.
• Enter repayment six months after graduation or when you cease attending a place of higher education at least half time (3 credits)
• Are set at a fixed-interest rate
• Have an origination fee deducted from the loan funds by the Department of Education
• Accrue interest at the point the loan is disbursed onto your student account (typically 10 days before your first class)

Unsubsidized Loans are available to undergraduate and graduate students, regardless of financial need. Graduate students are not eligible for subsidized Loans.

For more information on the current interest rates and origination fees, see .

This lifetime limit does not apply to students under legacy provisions. 

Private Loans

Private (or alternative) loans are loans that are not part of the federal financial aid program but are instead offered through a private loan lender.

Ready for a quick overview? Here we go!

• Borrower: Typically, private loans would be in your name. In some cases, you may need a cosigner on your loan to help you qualify or get you a better interest rate.
• Loan Amount: The loan total cannot exceed the Cost of Attendance (COA) minus all other financial aid (COA – all other financial aid = maximum private loan you can borrow).
• Private loans have no loan origination fee, so you should apply for the exact amount you want to receive.
• Repayment: Some lenders will want you to begin repayment of the loan while you’re enrolled in school, but most offer loan deferment, meaning no payment on the loan is required while you’re enrolled at least half-time (3 credits).
• Interest: There are both fixed and variable interest rate options. We generally recommend going with a fixed rate loan because the interest will stay the same for the entire loan term.
  • Interest rates and fees also vary greatly and may depend on the borrower’s credit score and history. The lender will run a hard credit check to pull this information.
  • Interest begins accruing at the point the loan is disbursed onto your student account (this is typically 10 days before the semester begins).
    Where do I find a private loan?

These resources will help you make an informed decision about the most appropriate loan for you:

• Check with your personal bank or credit union.
• Try  to view and compare lenders that have provided private loans to SPU students in the past.
  • Please note that you are not required to select a lender on this list.

Your Financial Aid Specialist cannot recommend any private lender but can help you understand your options.

Grad PLUS Loans (Legacy Provision Students Only)

The One Big Beautiful Bill Act discontinued the Federal Grad Plus loan program for new borrowers as of July 1, 2026. Under legacy provisions, students who began their program and borrowed a Federal Direct or PLUS Loan prior to July 1, 2026, are still eligible. These students will continue under the current federal loan structure for up to three academic years or for the remainder of their current program, whichever is shorter. Throughout this page, we have clearly noted where Legacy provisions differ and what applies to these students.

Federal Grad PLUS Loans are federal loans provided by the U.S. Department of Education that graduate or professional degree students can use to help pay education expenses. To be eligible, borrowers must apply online at Studentaid.gov and be approved. The maximum loan amount is the student’s Cost of Attendance minus other aid.

Here are some quick facts about Grad PLUS Loans:

• The U.S. Department of Education is the lender.
• PLUS Loans are approved based on a credit check of the student.
• The credit check is not a review of your credit score, but for adverse credit history.
• The maximum loan amount is the student’s Cost of Attendance minus any other financial aid received.
• PLUS Loans have an origination fee deducted by the Department of Education.
• You’ll receive an automatic deferment of repayment while you’re enrolled in school at least half time.
• The PLUS Loan must be applied for each year the student wishes to borrow.

Additional information is available at .