The One Big Beautiful Bill Act (OBBB), enacted in July 2025, introduced major changes to U.S. federal student loan programs. These updates take effect on July 1, 2026.
Undergraduate and Graduate Loan amounts will be prorated based on course load.
Undergraduate Students
- Parent PLUS Loans will be capped at $20,000 USD per dependent per year, with a lifetime loan limit of $65,000 USD.
- Current Parent PLUS borrowers with loans first disbursed before July 1, 2026 may continue to borrow under the pre-July 1, 2026 rules while the student remains eligible for the federal grandfathering provision. Grandfathered eligibility is limited to the lesser of three academic years or the student's remaining expected time to complete their current degree program, provided the student remains continuously enrolled in the same program at McGill University.
Graduate/Professional Students
Graduate PLUS Loans will be discontinued.
- New borrowers will no longer be eligible for Graduate PLUS Loans.
- Existing borrowers with loans first disbursed before July 1, 2026 may continue to borrow under the pre-July 1, 2026 federal loan limits while eligible for the grandfathering provision. Eligibility is limited to the lesser of three academic years or the student's remaining expected time to complete their current degree program, provided the student remains continuously enrolled in the same program at McGill University.
Unsubsidized Loan limits will change.
- Professional programs: up to $50,000 USD per year; lifetime limit $200,000 USD.
- Graduate programs: up to $20,500 USD per year; lifetime limit $100,000 USD.
- The U.S. Department of Education still needs to confirm the definition of “professional” programs.
Resources:
Updates: This page will be revised as the U.S. Department of Education releases additional information.