On July 4, 2025, Congress enacted P.L. 119-21, commonly referred to as the One Big Beautiful Bill Act (OBBBA). This legislation introduces major changes to federal student financial aid programs, with an effective date of July 1, 2026.

Key provisions include:

• Phasing out the federal Direct Graduate PLUS Loan

• Introducing loan proration for students enrolled less than full-time

• Establishing new limits on federal student loan borrowing

Many implementation details will require federal rulemaking. CAPACRAO will continue to monitor developments and share updates as new guidance becomes available.

We encourage members to begin considering how these changes may impact enrollment planning, advising conversations, and institutional policy.