Federal Student Loan Changes

On July 4, 2025, the "One Big Beautiful Bill Act", or OBBBA, was signed into law and resulted in many changes to federal financial aid programs. Effective July 1, 2026, new limits will be placed on federal student loans for graduate and professional students, and federal loan repayment options will change for borrowers.

It is important to note that the U.S. Department of Education (ED) has defined a professional degree as distinct from a graduate degree. A professional degree signifies both completion of the academic requirements for beginning practice in each profession and a level of professional skill beyond that normally required for a bachelor's degree and where professional licensure is also generally required. Based on the final regulations from the Department of Education, JD students will be classified as professional students and LLM, JSD, and MLS students will be classified as graduate students.

2026-2027 Loan Eligibility

Law Students Continuing Their Current Program: JD and JSD students who have borrowed federal student loans for their current UChicago Law degree program prior to July 1, 2026 and will continue in that same program into the 2026-2027 academic year may continue to borrow Unsubsidized and Graduate PLUS loans at their current limits. This borrowing option will be available for three academic years (through the 2028-2029 academic year) or for the remainder of the expected time needed to complete your current degree, whichever is less.
Professional Students Beginning a New Program: Graduate PLUS Loans are not available to new JD borrowers beginning with the 2026-2027 academic year, including incoming transfer students who will start with the Autumn 2026 quarter. You will be eligible for a Federal Unsubsidized Loan (up to $50,000 per academic year) and may be eligible to borrow private student loans. The federal student loan aggregate professional degree borrowing limit is $200,000, including any previous graduate borrowing. The new lifetime federal loan borrowing limit is $257,500 and includes all undergraduate, graduate, and professional borrowing.
Graduate Students Beginning a New Program: Graduate PLUS Loans are not available to new LLM and JSD borrowers beginning with the 2026-2027 academic year. You will be eligible for a Federal Unsubsidized Loan (up to $20,500 per academic year) and may be eligible to borrow private student loans. The federal student loan aggregate graduate degree borrowing limit is $100,000. The new lifetime federal loan borrowing limit is $257,500 and includes all undergraduate, graduate, and professional borrowing.

Loan Limits Interim Exception (i.e. legacy borrowing)

Prior borrowers still in their program of study may continue borrowing a Direct Graduate PLUS Loan and be subject to older borrowing limits if they are designated as qualifying for the interim exception (i.e. are considered a legacy borrower). Students will qualify for the interim exception if they meet the following two requirements:

Remain continuously enrolled in the same program at UChicago, until your expected time to credential (see below), as you were enrolled as of June 30, 2026, AND
Received a Direct Loan disbursement (Direct Unsubsidized Loan or Direct Graduate PLUS Loan) for that same program before July 1, 2026.

Please note: Loss of the interim exception will result in a student being subject to new loan borrowing limits. Prior Direct Graduate PLUS Loan borrowing will be considered in that total. Students exceeding those totals will no longer be eligible for federal Direct student loans.

New Program Borrowing Limits

Effective July 1, 2026, new limits will be placed on the federal Direct Unsubsidized Loan for graduate and professional students who are starting a new degree programs after that date.

Graduate Programs: Annual cap of $20,500; aggregate graduate program borrowing limit of $100,000.
Professional Programs: Annual cap of $50,000; aggregate professional program borrowing limit of $200,000.
All Programs: Lifetime Maximum Loan Borrowing Limit of $257,500 for all Federal Direct Loans borrowed for all levels of study, regardless of any amounts paid, forgiven, or discharged (excluding Parent PLUS loans).

Less than Full-Time Enrollment

If you are enrolled less than full time, then your annual loan limit will be adjusted based on your enrollment level. This applies to both new borrowers and legacy borrowers eligible for the loan limits interim exception.

The Law School requires all students to be enrolled full-time (9 or more credits per quarter). Beginning in Autumn 2026, Law students who change their enrollment to be less than full time for a quarter will be eligible for a prorated loan amount based on the enrollment intensity and annual cap for their academic program. Students must enroll at least half-time (6 credits per quarter) to be eligible for Direct student loans.

Students who change their enrollment after loan disbursement occurs for the quarter will be subject to a loan adjustment. This process may require our office to reduce loan funds that have already been disbursed to your account. If this happens, it can create a balance or require a partial or total living expense refund to be returned.

Student Loan Amount Notifications

All Law students are packaged for student loans assuming full-time enrollment. The Office of Financial Aid will update student loan eligibility through the add/drop period, however students should not expect immediate updates to packages based on changes made to their course schedule.

Student Loan Disbursements

At the time of loan disbursement, your enrollment will be evaluated and the loan amount adjusted to reflect enrollment intensity. Loan amounts will vary based on the individual student’s eligibility, not the student’s program.

Changes to Enrollment

The impact of adding or dropping courses will be considered when calculating loan eligibility. It is strongly advised that students discuss impacts of adjusting their course load with the Office of Financial Aid and the Dean of Students Office.

Expected Time to Credential (ETTC)

Students may continue borrowing using the interim exception rules for up to three academic years or their time to degree completion (the difference between the published length of their program and the portion they have completed as of July 1, 2026), whichever is less, if they:

Were enrolled in a program of study at an institution as of June 30, 2026; and
Received at least one Direct Loan for such program of study prior to July 1, 2026; and
Are currently enrolled at UChicago in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026.

Leave of Absence (LOA) and loss of the interim exception

The US Department of Education (ED) definition of an approved leave of absence is more rigorous than the University of Chicago's definition. A leave of absence at UChicago, either taken before a quarter starts or after a drop of courses, does not meet the ED definition. If you are eligible for the loan limits interim exception and take a leave of absence while enrolled at UChicago, you will no longer be eligible for the interim exception for Federal Direct student loans.

In order for continuing borrowers to maintain eligibility for the loan programs under pre-July 1, 2026 rules, you must be continuously enrolled in the same academic program at UChicago.

Please note: Loss of the interim exception will make a student subject to the post-July 1, 2026 loan borrowing limits. This limit will account for prior Direct Graduate PLUS Loan borrowing, which may result in a student being past the new federal Lifetime Maximum Loan Limit of $257,500 and thus make the student ineligible to borrow additional federal Direct student loans.

Changes to Federal Repayment Plans

Borrowers with new federal loans made on or after July 1, 2026 are only eligible to choose from two repayment plans: a new standard repayment plan with fixed monthly payments and terms ranging from 10 to 25 years based on the amount borrowed, or a new income-based repayment assistance plan, known as RAP, with a 30 year repayment period and tiered repayment based on income. Students who do not borrow a federal student loan after July 1, 2026 may continue to enroll in the current repayment plan options for a limited time.

Final regulations on the student loan changes were released by the Department of Education on May 1, 2026, and formal implementation guidance continues to be released by the Department of Education.

The Law School's Financial Aid Office, in concert with the University Financial Aid Office, continues to monitor updates and will provide additional guidance as it becomes available. The University has gathered a preferred lender list to help students identify possible private lenders to research further as needed, and the Law School continues to explore private lending options and is actively monitoring lender updates so that students have the resources they need to finance their legal education.

Updated information from the Department of Education can be found at studentaid.gov.

This page has been updated as of August 27, 2026.

Graduate Student Federal Loan Options

The below changes are set to take effect on July 1, 2026.

Graduate PLUS Loan Elimination

Starting July 1, 2026:

New graduate or professional students will no longer be able to borrow the Graduate PLUS Loan, unless they qualify for the loan limits interim exception (i.e. are desginated a legacy borrower) as outlined above.

New Unsubsidized Loan Limits

Starting July 1, 2026:

Professional students (including JD students) will be able to borrow up to $50,000 per year in Unsubsidized Loan funding, with an aggregate graduate and professional degree borrowing limit of $200,000.
Graduate students in other programs may borrow up to $20,500 per year, with an aggregate graduate degree borrowing limit of $100,000.
All students will have a new lifetime federal loan borrowing limit is $257,500, which includes all undergraduate, graduate, and professional borrowing and includes loans that have alreayd been paid, forgiven, or discharged.

Loan Repayment and Public Service Loan Forgiveness (PSLF)

The new Tiered Standard Repayment Plan and the Repayment Assistance Plan (or RAP) are available for anyone who borrowed a federal student loan on or after July 1, 2026. More information on the plans is available at studentaid.gov.

New Tiered Standard Repayment Plan

The OBBBA introduces a new Tiered Standard Repayment Plan, with monthly payment amortized over the length of the applicable repayment period. This will be the only fixed repayment plan option for students who borrow on or after July 1, 2026. The length of the repayment period will be based on the borrower's federal student loan debt:

10 years for lifetime federal student loan debt amounts less than $25,000
15 years for lifetime federal student loan debt amounts between $25,000 and $49,999
20 years for lifetime federal student loan debt amounts between $50,000 and $99,999
25 years for lifetime federal student loan debt amounts of $100,000 or more

More information on the Tiered Standard Repayment Plan is available at studentaid.gov.

New Income-Driven Repayment Assistance Plan

The OBBBA creates a new income-driven repayment (IDR) plan called the Repayment Assistance Plan, or RAP. This will be the only IDR plan available to students borrowing federal student loans on or after July 1, 2026 and it will base monthly payments on Adjusted Gross Income (AGI):

Adjusted Gross Income (AGI)	Monthly Payment Percentage
$10,000 or less	$10
Between $10,001 and $20,000	1% of Annual AGI divided by 12
Between $20,001 and $30,000	2% of Annual AGI divided by 12
Between $30,001 and $40,000	3% of Annual AGI divided by 12
Between $40,001 and $50,000	4% of Annual AGI divided by 12
Between $50,001 and $60,000	5% of Annual AGI divided by 12
Between $60,001 and $70,000	6% of Annual AGI divided by 12
Between $70,001 and $80,000	7%of Annual AGI divided by 12
Between $80,001 and $90,000	8% of Annual AGI divided by 12
Between $90,001 and $100,000	9% of Annual AGI divided by 12
Above $100,001	10% of Annual AGI divided by 12

The new RAP also:

Waives any unpaid accrued monthly interest.
Reduces the monthly repayment amount by $50 for each dependent claimed on the tax return.
Provides student loan forgiveness after 360 qualifying monthly payments (30 years).

More information on the Repayment Assistance Plan is available at studentaid.gov.

Streamlining of Current Repayment Options

For all students who borrow a federal student loan on or after July 1, 2026: the OBBBA eliminates all current income-driven repayment (IDR) plans as well as extended and graduated plans. This includes students in current, continuing degree programs who borrow a federal student loan after July 1, 2026, even if they are considered "grandfathered" into Graduate PLUS borrowing.

For students who will NOT borrow a new federal student loan on or after July 1, 2026: these borrowers can remain on their current IDR plan for now, and the current Income-Based Repayment (IBR) plan will remain an option. Those who are in an IDR plan other than IBR will need to transition to either IBR or the new RAP no later than July 1, 2028.

More guidance on implementation of these provisions is still pending from the Department of Education.

Public Service Loan Forgiveness (PSLF)

There are no changes to PSLF in the OBBBA. Students pursuing careers in qualifying public service roles will still have PSLF available for federal student loans.

There are changes on PSLF employer eligibility coming from Department of Education rulemaking in line with President Trump's March 7th Executive Order. Those final regulations were released on October 30, 2025 and take effect July 1, 2026, but are paused by a court order as of June 30, 2026 and is going through the court appeals process.

Borrowing and Repayment Options Chart from AccessLex

This guidance given below for current students is based on a JD student's academic level as of the 2025-2026 academic year.

Borrowing and repayment options chart post-OBBA from AccessLex Institute

Current Law 1L and 2L JD students

We will send more information via email on next steps for students who want to establish PLUS Loan eligibility past July 1, 2026. We will also host FA Office Hours throughout the Spring 2026 quarter to answer questions and provide guidance on next steps. The office hours schedule is available on our OBBBA and Current Students webpage. We will also publicize any events through the weekly Student Services Newsletter.

Current Law 3L JD students

We recommend reviewing our Preparing for Graduation and Loan Repayment website, which will be updated in the coming weeks with the changes from the OBBBA. We will also host a Loan Repayment lunch talk with the AccessLex Institute at the end of April; check the weekly Student Services Newsletter for more information and the RSVP link.

Law School alumni in repayment

There is nothing alumni need to do at the moment. If you are repaying your loans through the SAVE, PAYE, or ICR income-driven repayment plans, those will be sunset by July 1, 2028 and so you will eventually need to switch to IBR or the new RAP. We expect that loan servicers will reach out to borrowers once the Department of Education has finalized that timeline.

Admitted Class of 2029 JD students

Please review the Admitted Students website for more information on next steps in the financial aid process.

Prospective JD students (including prospective 2026-2027 transfer students)

Please review the Loan Options webpage for more information.

What counts as a "professional" program?

At the Law School, the only professional program is the JD program. All other degree programs, including the LLM, JSD, and MLS programs are considered graduate programs.

These changes may also impact dual degree programs (like JD/MBA, JD/MPP, JD/mDiv, and JD/PhD) where one program is considered “professional” and the other is considered "graduate". We encourage dual degree students to contact our office for further guidance.

What is the timeline for the changes to repayment plan options?

For borrowers with new loans that are disbursed after July 1, 2026, the OBBBA eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with RAP.

Students who borrowed loans prior to July 1, 2026 and will borrow a new loan after July 1, 2026 are limited to the new RAP or Standard Repayment Plan. Current borrowers who do not borrow a loan after July 1, 2026 and are enrolled in the ICR, PAYE, or SAVE plans must transition to a different IDR plan (current IBR or RAP) by July 1, 2028. If no selection is made by that date, they will be moved into RAP automatically.

We’ll share more about RAP and these repayment plan transition timelines once the Department of Education releases more guidance.

I’m a currently enrolled JD student at UChicago Law. What should I expect or do?

If you’ve already borrowed a federal student loan (Unsubsidized and/or Graduate PLUS) for your UChicago Law JD degree before July 1, 2026, you will continue to be eligible for the Graduate PLUS Loan under the loan limits interim exception and continue to be able to borrow federal student loans up to the cost of attendance for the remainder of your expected time to credential as outlined above. If you take a leave of absence or add/change degree programs, that may change your borrowing options and we would encourage you to reach out to our office.

I’ve already graduated from UChicago Law and am in repayment. Do these changes affect me?

If your loans were disbursed before July 1, 2026 and you do not borrow a loan after that date, we expect that you will retain access to your current repayment plan for now. Some plans are phasing out and much remains to be determined based on the Department of Education's implementation guidance.

When it comes to income-driven repayment options, Income-Based Repayment (IBR) will remain available if you only borrowed prior to July 1, 2026. The Saving on a Valuable Education (SAVE), Pay As You Earn (PAYE), and Income Contingent Repayment (ICR) plans are being phased out by June 30, 2028 and borrowers enrolled in those plans will need to switch to IBR before that date or be automatically moved into RAP.

I’m working toward Public Service Loan Forgiveness (PSLF). Is that still available?

Yes, PSLF remains unchanged in the OBBBA.

If you are already pursuing PSLF - or plan to - you can continue making qualifying payments under an eligible repayment plan. Just be sure to continue using the PSLF Help Tool to certify your employment and remain in good standing. Future changes to loan repayment options (like RAP) may affect how payments are counted, so keep records and watch for updates.

There are changes on PSLF employer eligibility coming from Department of Education rulemaking in line with President Trump's March 7th Executive Order. Those final regulations were released on October 30, 2025 and take effect July 1, 2026. If you have any questions about these changes, please reach out to our office.