The “One Big Beautiful Bill Act” rushed through Congress last year included a number of major changes to the federal student loan system. Many of those changes required rulemaking by the Department of Education (via a negotiated rulemaking process), and, today, the Department finalized one set of rules.
The rules published today (1) implement OBBBA’s new loan limits for graduate students, professional students, and parents; (2) eliminate several repayment options for low-income borrowers, replacing them with a less-borrower-friendly “Repayment Assistance Plan”; and (3) make it easier for borrowers in default to rehabilitate their loans.
The National Consumer Law Center’s press release on the Rule is available here. Several professional organizations have already said they plan on challenging the Department’s implementation of the statutory “professional degree” versus “graduate degree” distinction.
