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 (prorated by enrollment), $20,500 for standard graduate programs, and $50,000 for Core 11 professional/doctoral programs (Medicine, Dentistry, Law, Pharmacy, etc.). Grad PLUS loans are eliminated for new borrowers. Aggregate limits are $257,500 total and $200,000 for professional programs.

What is RAP (Repayment Assistance Plan) under the OBBBA?

RAP replaces all current IDR plans (SAVE, PAYE, IBR, ICR) for new loans after July 1, 2026. Payment tiers: under $50K AGI = $10/month minimum, $50K–$100K = 5% discretionary income, $100K–$150K = 10%, $150K+ = 15%. Includes balance protection (balance never grows), $50/month mandatory principal, and forgiveness after 30 years.

What is a Legacy Borrower under the OBBBA?

A Legacy Borrower is someone who had an outstanding federal loan or was enrolled in a Title IV institution before July 1, 2026. Legacy borrowers retain pre-OBBBA annual and aggregate loan limits for up to 3 academic years (until June 30, 2029), provided they maintain continuous enrollment. Starting a new degree after July 1, 2026 resets status to New Borrower.

Which graduate programs qualify for the $50,000 annual cap under OBBBA?

Only the Core 11 professional/doctoral programs qualify: Medicine (MD/DO), Dentistry (DDS/DMD), Optometry (OD), Veterinary Medicine (DVM), Podiatry (DPM), Pharmacy (PharmD), Chiropractic (DC), Osteopathic Medicine, Law (JD), Nursing Practice (DNP), and Clinical Psychology (PsyD). All other graduate programs including MBA, MFA, MSW, and MPH are capped at $20,500 annually.

When does the OBBBA take effect for student loans?

Key dates: July 4, 2025 — OBBBA signed into law. July 1, 2026 — New caps take effect, RAP replaces IDR, Grad PLUS eliminated. July 1, 2027 — In-school deferment eliminated. July 1, 2028 — All remaining IDR plans sunset. June 30, 2029 — Legacy Borrower protections expire.

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