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Frequently Asked Questions: One Big Beautiful Bill Act

The One Big Beautiful Bill Act (Public Law 119-21), signed in July 2025, made significant changes to federal student loans, especially for graduate and professional students. The U.S. Department of Education published final regulations in May 2026, and most changes took effect July 1, 2026. One area remains unsettled: which programs qualify for the higher "professional" loan limits is the subject of ongoing litigation (see below).

Below are answers for current students, incoming students, alumni, and borrowers pursuing loan forgiveness. We will update this page as guidance changes For the most up to date information surrounding changes made to student aid eligibility, please visit the Federal Student Aid Announcements page .

Q1: I'm a currently enrolled graduate or professional student at Northwestern. What should I expect?

If you were enrolled in your current program as of June 30, 2026, and you received a Federal Direct Loan disbursement (Unsubsidized or Grad PLUS) for that program before July 1, 2026, you qualify for the federal interim exception. Under the interim exception, you may continue borrowing Grad PLUS loans and Unsubsidized Loans under the limits in effect before July 1, 2026.

The interim exception lasts for three academic years or your remaining expected time to complete your program, whichever is shorter. Your remaining time is based on your program's published length, not your individual completion date.

You will lose the interim exception if you:

• withdraw or otherwise stop being enrolled in your program, or
• transfer to another program or institution.

The interim exception does not protect you from the part-time reduction. If you enroll less than full-time, your annual loan limit is reduced in proportion to your enrollment (see Q7).

If you are considering a leave of absence, a program change, or adding a dual degree, contact our office first.

Q2: I'm a current student but did not borrow federal loans before July 1, 2026. Which rules apply to me?

The new federal loan limits apply to you, even though you are a continuing student. Grad PLUS loans are not available to you.

Q3: I started (or will start) a graduate or professional program on or after July 1, 2026. What loans are available to me?

This answer also applies to continuing students who do not qualify for the interim exception (see above).

Grad PLUS loans are not available to you. Your federal borrowing is limited to Direct Unsubsidized Loans. How much you can borrow depends on whether your program is classified as professional or graduate:

Some important details about these limits:

• Federal loans you have already borrowed for graduate or professional study count toward the aggregate limit.
• A separate lifetime maximum of $257,500 applies to all federal Direct Loans combined.
• Annual limits are reduced for students enrolled less than full-time (See Q7).
• Your loan can never exceed your cost of attendance minus other aid you receive.

How Northwestern Chicago-campus programs are classified:

• Professional: JD, JD-MBA, MD
• Professional (temporary, see note below): Physician Assistant, Doctor of Physical Therapy
• Graduate: LLM and other Pritzker non-JD programs, Kellogg Evening & Weekend MBA, all SPS graduate programs, Prosthetics-Orthotics

Note on temporary classifications: On June 24, 2026, a federal court paused part of the Department of Education's definition of a "professional degree." While that pause is in effect, ED is treating certain additional programs as professional, including physician assistant and physical therapy. The litigation is ongoing. If the court's final ruling upholds ED's original definition, these programs would return to the graduate limit of $20,500 for future loans. Students may also be required to return amounts already received above that limit.

Northwestern's policy for Physician Assistant and Physical Therapy students: We will initially offer you Direct Unsubsidized Loans up to the graduate limit of $20,500. If you want to borrow above $20,500 (up to $50,000) while the court's pause is in effect, you must first complete a Provisional Professional Program Designation Form confirming that you understand the following:

• The professional classification for your program is temporary and may be reversed by the court's final ruling.
• If it is reversed, you may be required to repay any amount you borrowed above $20,500 for that year, and any loan disbursements not yet paid to you may be cancelled.
• All federal loans you borrow count toward the $100,000 aggregate limit for graduate students. If your program returns to the graduate classification, borrowing above $20,500 now may leave you with little or no federal loan eligibility in later years of your program.

To request the form, email [financial-aid-chicago@northwestern.edu]. We recommend reviewing your full program cost with a counselor before borrowing above $20,500.

If federal loans don't cover your full cost of attendance, private loans may help fill the gap. See Private Loans and contact our office to review your options.

 

Q4: I'm an undergraduate student. How do these changes affect my financial aid?

This applies to both continuing and new undergraduate students.

Federal Direct Loans: Undergraduate annual and aggregate Direct Loan limits did not change. However, beginning July 1, 2026, if you enroll less than full-time, your loan eligibility is reduced in proportion to your enrollment. For SPS undergraduates, full-time is 3 units per quarter; students enrolled in 2 units are eligible for two-thirds of the annual limit. You must be enrolled in at least 2 units per quarter to receive federal loans (See Q7).

Federal Pell Grant: Beginning with the 2026-27 award year, you are not eligible for a Pell Grant if:

• your Student Aid Index (SAI) is $14,790 or higher, or
• grants and scholarships from non-federal sources cover your full cost of attendance.

Foreign income is now also included when determining Pell eligibility.

Repayment: Federal loans first disbursed on or after July 1, 2026 are eligible only for the new Repayment Assistance Plan and Tiered Standard plan. See the repayment answer below.

Parent PLUS Loans (dependent students only): Beginning July 1, 2026, Parent PLUS borrowing is limited to $20,000 per year and $65,000 total per dependent student, regardless of how many parents borrow.

• Continuing students: If you were enrolled in your program as of June 30, 2026, and your parent received a Parent PLUS disbursement for that program before July 1, 2026, your parent may continue borrowing under the previous rules (up to your cost of attendance minus other aid). This lasts for three academic years or your remaining expected time to complete your program, whichever is shorter. It ends if you withdraw or transfer.
• New students: The new limits apply.

Q5: I've already graduated and am in repayment. Do these changes affect me?

It depends on your repayment plan and whether you borrow again.

If all your federal loans were disbursed before July 1, 2026, and you do not borrow or consolidate again, you keep access to the Standard, Graduated, Extended, and Income-Based Repayment (IBR) plans. You may also choose the new Repayment Assistance Plan (RAP).

If you were enrolled in the SAVE plan: SAVE has ended, and you must select a new repayment plan. Borrowers who do not choose a plan by their deadline are placed in the Standard plan, which may significantly increase monthly payments. Contact your loan servicer or visit studentaid.gov now if you have not yet chosen a plan.

If you are enrolled in PAYE or Income-Contingent Repayment (ICR): Both plans end July 1, 2028. You must move to another plan before then; borrowers who don't will be moved to IBR or RAP.

If you take out a new federal loan or consolidate on or after July 1, 2026: Your new loans, and generally all of your federal loans once the new loan enters repayment, will be limited to RAP or the Tiered Standard plan. If you are considering returning for another degree, contact our office before borrowing so we can help you understand the effect on your existing loans.

Link to studentaid.gov Loan Simulator

Q6: I'm working toward Public Service Loan Forgiveness (PSLF). Is it still available?

Yes. The 2025 legislation did not change PSLF itself: you still need 120 qualifying monthly payments while working full-time for a qualifying employer. However, changes to repayment plans affect which payments count:

• IBR and the new Repayment Assistance Plan (RAP) are qualifying plans.
• PAYE and ICR payments count only through June 30, 2028, when those plans end. Switch to a qualifying plan before then to avoid a gap.
• If you were in SAVE, you must move to a qualifying plan to continue earning credit.

Employer eligibility: In 2025, the Department of Education issued a rule that would allow it to disqualify certain employers from PSLF. Federal courts struck down that rule in June 2026, and it is not in effect. The Department has appealed, so the outcome may change.

We recommend certifying your employment annually using the PSLF Help Tool on studentaid.gov so your qualifying payment count stays current.

Q7: How is my enrollment level determined for federal loans?

Beginning July 1, 2026, federal loan limits are reduced for students enrolled less than full-time. Your loan eligibility is based on the number of units or credits you are enrolled in each term compared with full-time enrollment for your program. You must be enrolled at least half-time to receive federal loans.

JD-MBA students: during Kellogg terms, each Kellogg unit counts as 2.5 Law credits.

Example: A student in a graduate program with a $20,500 annual limit who enrolls in half of full-time each term is eligible for up to $10,250 for the year.

If you have questions about how your enrollment will affect your loans, contact our office before changing your registration.