The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, includes several changes to federal student loan regulations and limits. These changes impact federal loan limits, eliminate the Graduate PLUS loan program, and alter repayment options.
These changes affect the Class of 2030 and continuing students in different ways.
Please note that in some cases, some aspects of the new law require additional clarity, and we anticipate more information will come from the Department of Education. We will monitor changes and update this page as additional information becomes available.
Class of 2030 Students
The OBBBA considers all incoming students as “new borrowers,” and you will be affected by these changes.
Direct Unsubsidized Loans
Direct Unsubsidized loans to new borrowers will be subject to new limits:
- New Annual Direct Unsubsidized Loan Limit: $50,000
- New DO Degree Total Direct Unsubsidized Limit: $200,000
- New Lifetime Aggregate Federal Student Loans Limit: $257,500
Important note: The new DO Degree Total Direct Unsubsidized Limit is $200,000 minus any amount you received as a graduate student. Also, the new Lifetime Aggregate Federal Student Loans Limit includes all federal student loans (Subsidized, Unsubsidized, and Graduate PLUS) from all schools. Together, that means that if you have already borrowed for graduate school, or if you have borrowed more than $57,500 in federal student loans from all schools combined before VCOM, you will not be able to use the entire $200,000 DO Degree Limit for your VCOM degree.
Your Lifetime Aggregate Federal Student Loans amount cannot be reduced by repaying part of your loans. All prior federal student loans count toward the limit, even if you've already repaid them in full.
Graduate PLUS loans will not be available at all to new borrowers; however, many private educational loans are available.
If you need loan money beyond the Direct Unsubsidized amount, you will have to secure a Private Education Loan. For more information about the process, including credit considerations and next steps, see the Financial Aid Process page.
Continuing Students
The OBBBA exempts many continuing students, but includes restrictions that can cause a continuing student to be reclassified as a “new borrower.” Students reclassified to the new borrower category will be subject to the new loan limits above.
If you already have a Direct Unsubsidized or Graduate PLUS loan this year or in a previous year with VCOM, then you will be exempted from these changes – in other words, you’ll be “grandfathered.” As long as you remain in an exempt status, you will continue to have access to Graduate PLUS loans, and your annual and aggregate federal loan limits will remain as they are now.
- Current Annual Direct Unsubsidized Loan Limit:
$44,944 for rising Class of 2029 students
$42,722 for rising Class of 2028 and Class of 2027 students - Current Aggregate Subsidized and Unsubsidized Combined Limit:
$224,000 for all rising Classes - Current Annual Graduate PLUS Loan Limit:
Cost of Attendance minus other financial aid - Current Aggregate Graduate PLUS Loan Limit:
None
Continuing students will lose their exempt status if they have a break in enrollment or exceed their original expected time to complete their degree.
If you take a VCOM Leave of Absence or Temporary Withdrawal, you will lose the exempt status, will be reclassified as a “new borrower” when you return, and will be subject to the new loan limits above. This may mean that you are not eligible for any more federal student loans if your total borrowing exceeds $257,500. In that situation, private education loans would be your only option.
Even if you never take a VCOM Leave of Absence or Temporary Withdrawal, you will lose the exempt status when your total enrollment time exceeds the standard number of weeks in the DO degree program. If you repeat a portion of a year, repeat a failed Rotation, or have additional academic requirements added, you will lose the exempt status before you reach graduation. This may mean that you are not eligible for any more federal student loans if your total borrowing exceeds $257,500. In that situation, private education loans would be your only option.
If you lose the exempt status and have to secure a Private Education Loan, please view the Financial Aid Process page for more information about the process, including credit considerations and steps to take.
If you have questions about any of your financial aid options, please contact our Financial Aid Office on your campus.