# LoanGap.org

> Free independent calculator to estimate federal student aid funding gaps under the 2026 One Big Beautiful Bill Act (OBBBA). Not affiliated with any government agency.

## ⚠️ Critical Update: How the OBBBA Impacts Your Funding

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces the most significant changes to federal student aid in decades. Effective July 1, 2026, these changes will create substantial "funding gaps" for millions of students:

- **Grad PLUS Eliminated**: New graduate students can no longer borrow up to the full cost of attendance through the government.
- **Graduate Loan Caps**: $20,500/year (standard grad), $50,000/year (Core 11 professional programs only — Medicine, Law, etc.)
- **Parent PLUS Caps**: $20,000/year, $65,000 lifetime maximum per child.
- **RAP Replaces IDR**: All Income-Driven Repayment plans replaced by RAP with AGI-tiered payments and 30-year forgiveness.
- **Pell Grant Restrictions**: Students with full-COA scholarships lose Pell eligibility.
- **Low Earnings Accountability**: Programs failing earnings benchmarks may lose federal loan eligibility entirely.

## About

LoanGap.org is a free, browser-based tool that helps students and families calculate their federal student aid funding gap under the OBBBA (One Big Beautiful Bill Act), signed July 4, 2025, effective July 1, 2026. All calculations run client-side — no data is collected or transmitted.

## Key Features

- **Gap Calculator**: Estimate your annual federal aid shortfall for Undergraduate ($5,500–$7,500/yr), Graduate ($20,500/yr), Professional Core 11 ($50,000/yr), and Parent borrowers ($20,000/yr)
- **Legacy Lock-In Calculator**: Check if your pre-OBBBA borrowing limits are protected (expires June 30, 2029)
- **30-Year RAP vs Private Payoff Comparison**: Compare Repayment Assistance Plan (RAP) costs against private loan options
- **Co-Signer Risk Assessment**: Score co-signer risk based on age, income, debt, and credit
- **CIP Code Lookup**: Search which programs qualify for Core 11 ($50,000) vs Standard Graduate ($20,500) caps
- **PDF Report Generation**: Download a print-friendly funding gap estimate

## OBBBA Key Changes (Effective July 1, 2026)

- Graduate PLUS loans eliminated for new borrowers
- New annual caps: $20,500 (standard grad), $50,000 (Core 11 professional)
- Aggregate limits: $257,500 total, $200,000 professional
- RAP (Repayment Assistance Plan) replaces all IDR plans
- Legacy borrowers protected until June 30, 2029
- Workforce Pell expanded to short-term programs (8–15 weeks)
- In-school deferment eliminated July 1, 2027
- All IDR plans sunset July 1, 2028

## RAP Payment Tiers

- Under $50K AGI: $10/month minimum
- $50K–$100K: 5% of discretionary income
- $100K–$150K: 10% of discretionary income
- $150K+: 15% of discretionary income
- Balance protection (balance never grows beyond original amount)
- $50/month mandatory principal payment
- Forgiveness after 30 years

## Core 11 Programs ($50,000 Annual Cap)

Medicine (MD/DO), Dentistry (DDS/DMD), Optometry (OD), Veterinary Medicine (DVM), Podiatry (DPM), Pharmacy (PharmD), Chiropractic (DC), Osteopathic Medicine (DO), Law (JD), Nursing Practice (DNP), Clinical Psychology (PsyD)

## Important Disclaimers

- NOT financial advice, a loan offer, or a government document
- NOT affiliated with the U.S. Department of Education, FSA, CFPB, or any government agency
- Not a lender or broker
- Actual eligibility determined by ED and your institution
- OBBBA provisions subject to regulatory interpretation

## Frequently Asked Questions

**What are the new federal student loan limits under the OBBBA in 2026?**
Effective July 1, 2026, the OBBBA sets new annual caps: $5,500–$7,500 for undergraduates, $20,500 for standard graduate programs, and $50,000 for Core 11 professional/doctoral programs. Grad PLUS loans are eliminated. Aggregate limits: $257,500 total, $200,000 professional.

**What is RAP (Repayment Assistance Plan)?**
RAP replaces all current IDR plans for new loans after July 1, 2026. Payment tiers: under $50K AGI = $10/month, $50K–$100K = 5% discretionary income, $100K–$150K = 10%, $150K+ = 15%. Includes balance protection, $50/month mandatory principal, and 30-year forgiveness.

**What is a Legacy Borrower?**
Someone who had an outstanding federal loan or was enrolled in a Title IV institution before July 1, 2026. Legacy borrowers retain pre-OBBBA limits until June 30, 2029 with continuous enrollment.

**Which programs qualify for the $50,000 cap?**
Only Core 11: Medicine (MD/DO), Dentistry (DDS/DMD), Optometry (OD), Veterinary Medicine (DVM), Podiatry (DPM), Pharmacy (PharmD), Chiropractic (DC), Osteopathic Medicine, Law (JD), Nursing Practice (DNP), Clinical Psychology (PsyD).

**When does the OBBBA take effect?**
July 4, 2025 — signed. July 1, 2026 — new caps, RAP, Grad PLUS eliminated. July 1, 2027 — in-school deferment eliminated. July 1, 2028 — IDR sunset. June 30, 2029 — Legacy protections expire.

## Sources

- OBBBA Bill Text: https://www.congress.gov/bill/119th-congress/house-bill/1/text
- Federal Student Aid: https://studentaid.gov
- Department of Education: https://www.ed.gov
- NCES CIP Codes: https://nces.ed.gov/ipeds/cipcode
- CFPB: https://www.consumerfinance.gov

## URLs

- Homepage / Calculator: https://loangap.org/
- Planning Tools: https://loangap.org/tools
- Resources & FAQ: https://loangap.org/resources
- Private Loans: https://loangap.org/private-loans
- Legal: https://loangap.org/legal

## Additional Resources

- Full content version: https://loangap.org/llms-full.txt
- AI context: https://loangap.org/context.md
- Structured feed: https://loangap.org/feed.json