One Big Beautiful Bill Act will impact loan repayment and borrowing limit

The One Big Beautiful Bill Act, enacted on July 4, 2025, included multiple changes to federal financial aid. Specifically, the bill decreased student loan borrowing limits and overhauled income-based loan repayment plans.

For undergraduate students, the Pell Grant and Parent PLUS Loans are the most drastically impacted.

The SAI ranges from -1500 to 99999, with a negative number demonstrating a higher need for financial aid.

The maximum Pell Grant for the 25-26 school year is $7,395. The new changes mean that if a student’s SAI is over 14790, they no longer qualify for a pell grant

Turner, who previously worked at the White House Council of Economic Advisers in 2023-24 and as a Ph.D.

“A lot of the provisions have to do with making sure the government is getting a good return on their investment,” said Turner.

She added that the fields most likely to be impacted by the lifetime loan limits would be medicine and dentistry.

The largest OBBBA-caused change to financial aid, however, is an overhaul of income-based repayment plans.