Summary of Changes Following the One Big Beautiful Bill Act (OBBBA)
| Loan Type |
Pre-OBBBA |
Post-OBBBA |
|
Parent PLUS
|
No annual cap or aggregate limit. Parents can borrow up to the full Cost of Attendance (COA) minus Other Financial Assistance (OFA) per dependent. |
Parents can borrow only up to $20,000 annually with $65,000 aggregate limit per dependent. |
|
Direct Unsubsidized Loans
|
Graduate and professional students can borrow up to $20,500 annually.
|
Graduate students can borrow up to $20,500 annually, with $100,000 lifetime aggregate limit (excluding undergraduate loans).
Professional students can borrow up to $50,000 annually, with $200,000 lifetime aggregate limit (excluding undergraduate loans).
|
|
Graduate PLUS
|
No annual cap or aggregate limit. Graduate students can borrow up to the full Cost of Attendance (COA) minus Other Financial Assistance (OFA). |
Graduate PLUS is eliminated.
|
|
Less than Full-Time Annual Limit
|
Limit remains the same regardless of if student is enrolled full-time of less than full-time.
|
Less than full-time students may only borrow an amount proportional to their enrolled credit hours relative to full time credit hours.
|
|
Lifetime Maximum Aggregate Limit
|
$138,500 in Subsidized and Unsubsidized loans (includes undergraduate and graduate study, but excludes Parent and Graduate PLUS loans)
|
$257,500 in Subsidized, Unsubsidized and Graduate PLUS loans (excludes Parent PLUS loans)
|
Impact of your Estimated Family Contribution (EFC)
Your Estimated Family Contribution (EFC) may affect how much you can borrow in Subsidized loans as they are strictly need-based. A higher EFC could reduce your eligibility for these loans. In such cases, the Unsubsidized loan amount could be increased up to the combined maximum level (e.g. $5,500 for a first-year undergraduate dependent student). You can find your EFC on your Student Aid Report (SAR) after completing your FAFSA application.
Loan Limits for Legacy Borrowers (Pre-OBBBA)
The information below may be applicable to continuing students who received Federal Aid before 1 July 2026 and remain enrolled on the same programme of study who may continue to access funding under the previous rules for a limited period while completing their programme. These students are commonly referred to as 'legacy borrowers' for who transitional (grandfathered) provisions are available.
Undergraduate Dependent Students
| Year |
Subsidized maximum |
Additional Unsubsidized |
Combined maximum levels |
| First year |
$3,500 |
$2,000 |
$5,500 |
| Second year |
$4,500 |
$2,000 |
$6,500 |
| Third year and beyond |
$5,500 |
$2,000 |
$7,500 |
| Aggregate limit |
$23,000 |
n/a |
$31,000 |
Undergraduate Independent Students
| Year |
Subsidized maximum |
Additional Unsubsidized |
Combined maximum levels |
| First year |
$3,500 |
$6,000 |
$9,500 |
| Second year |
$4,500 |
$6,000 |
$10,500 |
| Third year and beyond |
$5,500 |
$7,000 |
$12,500 |
| Aggregate limit |
$23,000 |
n/a |
$57,500 |
Parent PLUS Loan
Parents of Undergraduate Dependent students can borrow up to the full Cost of Attendance (COA) minus Other Financial Assistance (OFA) per dependent. There is no annual cap or aggregate limit.
Example: First-year undergraduate dependent student with $52,500 COA - $4,200 OFA = $48,300 COA to be covered by loans
-
- $3,500 in Subsidized
- $2,000 in Unsubsidized
- $42,800 in Parent PLUS
Graduate Students (all postgraduate programmes)
| Year |
Subsidized |
Unsubsidized |
Graduate PLUS |
| Each year |
n/a |
$20,500 |
up to COA |
| Aggregate limit (includes undergraduate loans) |
$65,500 |
$138,500 |
n/a |
Example: Graduate student with $60,800 COA - $4,200 OFA = $56,600 COA to be covered by loans
-
- $20,500 in Unsubsidized
- $36,100 in Graduate PLUS loan
Loan Limits For Non-Legacy Borrowers (Post-OBBBA)
The information below may be applicable to students starting their studies on or after 1 July 2026 who are subject to the new guidance as enacted in the One Big Beautiful Bill Act (OBBBA) .
Undergraduate Dependent Students
No change post-OBBBA, please refer to the tables above.
Undergraduate Independent Students
No change post-OBBBA, please refer to the tables above.
Parent PLUS Loan
Parents can borrow only up to $20,000 annually with $65,000 aggregate limit per dependent child without any regard to any amounts repaid, forgiven, cancelled, or otherwise discharged.
Example: First-year undergraduate dependent student with $52,500 COA - $4,200 OFA = $48,300 COA to be covered by loans
-
- $3,500 in Subsidized
- $2,000 in Unsubsidized
- $20,000 in Parent PLUS
- $22,800 in Unmet Need/Private Loan
Graduate Students
| Year |
Subsidized |
Unsubsidized |
Combined Maximum Aggregate |
| Each year |
n/a |
$20,500 |
n/a |
| Aggregate limit |
$31,000 Dependent UG loans
$57,500 Independent UG loans
|
$100,000 |
$131,000 (includes Dependent UG loans)
$157,500 (includes Independent UG loans)
|
Example: Graduate student with $60,800 COA - $4,200 OFA = $56,600 COA to be covered by loans
-
- $20,500 in Unsubsidized
- $36,100 in Unmet Need/Private Loan
Professional Students
| Year |
Subsidized |
Unsubsidized |
Combined Maximum Aggregate |
| Each year |
n/a |
$50,000 |
n/a |
| Aggregate limit |
$31,000 Dependent UG loans
$57,500 Independent UG loans
|
$200,000 |
$231,000 (includes Dependent UG loans)
$257,500 (includes Independent UG loans)
|
Example: Graduate student with $60,800 COA - $4,200 OFA = $56,600 COA to be covered by loans
-
- $50,000 in Unsubsidized
- $6,600 in Unmet Need/Private Loan
Less than Full-Time Students
Less than full-time students may only borrow an amount proportional to their enrolled credit hours relative to full time credit hours.
Example full-time student: $3,500 Subsidized and $2,000 Unsubsidized (100% of credit hours)
Example half-time student: $1,750 Subsidized and $1,000 Unsubsidized (50% of credit hours)
Lifetime Borrowing Limit
The One Big Beautiful Bill Act (OBBBA) introduces a new lifetime Federal Student Loan borrowing limit of $257,500. This is the maximum total amount that you can borrow through eligible Federal Student Loan programmes over your lifetime. The $257,500 limit applies to Federal Student Loans borrowed for undergraduate, graduate, and professional study. Parent PLUS Loans borrowed by your parent on your behalf do not count towards your $257,500 lifetime limit. You should be aware that this is an overall lifetime cap and applies in addition to any annual or programme-specific borrowing limits. This means that any Federal Student Loans you have previously borrowed may reduce the amount available to you for future study.
Important: Current guidance indicates that all prior Federal Student Loan borrowing counts towards the $257,500 lifetime limit, even if those loans have since been repaid, forgiven, cancelled, or discharged. It is therefore important that you review your federal borrowing history when planning any future undergraduate, graduate, or professional study.
Example: If you previously borrowed $31,000 for undergraduate study, and $41,000 for graduate study, you would generally have up to $185,500 of your lifetime borrowing limit remaining, subject to any applicable annual and programme-specific borrowing limits.
If you have questions about how the lifetime borrowing limit may affect your eligibility, please contact the Federal Aid Team on federalaid@derby.ac.uk
Disclaimer
The information provided on this page is intended to help students understand recent changes to US Federal Student Aid programmes and how these changes may affect borrowers studying at the University of Derby. This information is for general guidance only and reflects our current understanding of federal legislation and guidance. Federal regulations may change, and individual eligibility and borrowing options will depend on personal circumstances. For the most current information, please refer to Federal Student Aid.