OBBBA and Current JD Students
The information on this page is directed to current students who are enrolled in the JD degree program as of the 2025-2026 academic year. Admitted students or alumni of the Class of 2026 and prior should refer to the information on the separate Federal Student Loan Changes webpage for guidance.
On July 4, 2025, President Trump signed a reconciliation bill (the "One Big Beautiful Bill Act", or OBBBA) which contains many changes to federal financial aid programs. Effective July 1, 2026, new limits will be placed on federal student loans for students who have not borrowed a federal student loan for the current degree program as of July 1, 2026.
- JD Students Who Have Borrowed For Their Current Program Prior to July 1, 2026: JD 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 will be considered "legacy students" and may continue to borrow Unsubsidized and Graduate PLUS loans at their current limits, provided you remain continuously enrolled. This borrowing option will be available for three additional academic years or until your current academic program is completed, whichever comes first.
- JD Students Who Have NOT Borrowed For Their Current Program Prior to July 1, 2026: Graduate PLUS Loans are not available to new JD borrowers beginning with the 2026-2027 academic year. 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 professional lifetime borrowing limit is $200,000, and this includes any previous graduate borrowing.
Additional changes from the OBBBA include:
- Continuous Enrollment Toward Degree: For continuing borrowers to maintain eligibility for the loan programs under pre-July 1, 2026 rules, they must be continuously enrolled in the same academic program at UChicago. Eligibility to use the prior rules lasts for three years or until the current academic program is completed, whichever is less. Taking a Leave of Absence (LOA) or adding/switching to a new program will result in loss of Graduate PLUS loan eligibility.
- Loan Reduction for Less Than Full Time: For students enrolled less than full-time during the academic year, loan amount eligibility will be reduced in proportion to the level of enrollment.
- 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.
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.
This page has been updated as of April 6, 2026.
What is Changing
Graduate Student Federal Loan Options
The below changes are set to take effect on July 1, 2026; formal implementation guidance and final regulations are set to be released by the Department of Education sometime in May 2026.
Graduate PLUS Loan Elimination
Starting July 1, 2026:
- New graduate students will no longer be able to borrow the Graduate PLUS Loan.
- Students who are enrolled in a continuing degree program and have had a federal student loan paid out for that same degree program prior to July 1, 2026 will still be able to access federal student loans to cover up to the cost of attendance for up to three additional years or until their degree program ends—whichever comes first.
- This “grandfathering” applies only if you borrowed loans prior to July 1, 2026 for your current, continuing degree program. If you borrowed a federal student loan for a previous graduate or professional degree program and start a new graduate or professional degree program after July 1, 2026, or you do not borrow for your current, continuing degree program prior to July 1, 2026, your loan eligibility will be limited moving forward.
- Additionally, if you otherwise qualify for this exception as a continuing current student but have a break in your enrollment (including a leave of absence), you will no longer qualify for this exception and will be subject to the new Unsubsidized Loan limits as outlined below.
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 Loans, with an aggregate graduate and professional programs borrowing limit of $200,000.
- Graduate students in other programs may borrow up to $20,500 per year, with an aggregate graduate programs borrowing limit of $100,000.
Loan Repayment and Public Service Loan Forgiveness (PSLF)
The new Standard Repayment Plan and the Repayment Assistance Plan (or RAP) are scheduled to become available on July 1, 2026; formal implementation guidance and final regulations are set to be released by the Department of Education sometime in May 2026.
New Standard Repayment Plan
The OBBBA introduces a new 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 guidance on implementation of these provisions is still pending from the Department of Education.
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 $10,000 and $20,000 | 1% of Annual AGI divided by 12 |
| Between $20,000 and $30,000 | 2% of Annual AGI divided by 12 |
| Between $30,000 and $40,000 | 3% of Annual AGI divided by 12 |
| Between $40,000 and $50,000 | 4% of Annual AGI divided by 12 |
| Between $50,000 and $60,000 | 5% of Annual AGI divided by 12 |
| Between $60,000 and $70,000 | 6% of Annual AGI divided by 12 |
| Between $70,000 and $80,000 | 7%of Annual AGI divided by 12 |
| Between $80,000 and $90,000 | 8% of Annual AGI divided by 12 |
| Between $90,000 and $100,000 | 9% of Annual AGI divided by 12 |
| Above $100,000 | 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 guidance on implementation of these provisions is still pending from the Department of Education.
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.
Next Steps for Current Students
Current Law 1L and 2L JD students
We sent information to 1L and 2L JD students via email on April 8th regarding next steps to establish legacy status and continue PLUS Loan eligibility past July 1, 2026. Please review that email for more information, or reach out to our office at financialaid@law.uchicago.edu for guidance.
We will also host FA Office Hours throughout the Spring 2026 quarter to answer questions and provide guidance on next steps. The in-person office hours schedule is below; a schedule of Zoom office hours will be available in the coming weeks. We will also any events through the weekly Student Services Newsletter and the Law School's Weekly Briefs email.
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.
FA Office Hours and Additional Resources
We will offer the following in-person, drop in office hours during the Spring 2026 quarter to support current students as OBBBA guidance is released:
- Friday, April 10, 2:30pm to 3:30pm, Room C
- Tuesday, April 14, 2:30pm to 3:30pm, Room C
- Wednesday, April 22, 3:00pm to 4:00pm, Room B
We will also offer drop-in office hours on Zoom in late April and then throughout May as students decide on their next steps with regards to federal student loan borrowing and loan repayment. More information about these Zoom office hours will be available in the coming weeks.
Additional Resources
Current Student Frequently Asked Questions
What is changing and why do I need to make this decision?
The OBBBA limits federal student loan borrowing options for all graduate and professional students beginning with the 2026-2027 academic year. The OBBBA eliminates the Graduate PLUS Loan and changes the limit for the Federal Direct Unsubsidized Loan to $50,000 per academic year.
There is a limited exception to these changes if you are a current student who has already borrowed a federal student loan for your UChicago Law JD program during the 2025-2026 academic year. You will be considered a “legacy” borrower (a.k.a. grandfathered borrower) and will be able to continue to borrow up to $20,500 in Unsubsidized Loan funding and Graduate PLUS Loan funding up to the cost of attendance, for a maximum of three years or until you complete your JD program (whichever is less time), provided you remain continuously enrolled.
If you have not established legacy borrower status (i.e. you did not borrow a federal student loan prior to the end of the 2025-2026 academic year), you will no longer be eligible for the Graduate PLUS Loan beginning with the 2026-2027 academic year and your Direct Unsubsidized Loan eligibility will be limited to $50,000 per academic year beginning with the 2026-2027 academic year. If you need additional student loan funding beyond that $50,000 Unsubsidized Loan annual limit, a private student loan would be an option moving forward.
I have not yet borrowed a federal student loan, should I borrow to maintain Graduate PLUS eligibility?
If you think you will need more than $50,000 in federal student loan funding for your 2L and or 3L year then, yes, we recommend borrowing a federal student loan during the current 2025-2026 academic year to maintain your Graduate PLUS Loan eligibility moving forward. When making this decision it is important to consider all legacy borrowing requirements, including maintaining continuous enrollment in the same program of study.
If you do not think you will need more than $50,000 in federal student loan funding for your 2L and/or 3L year, then it may make more sense to not borrow now and be subject to the new $50,000 Unsubsidized Loan limit, since the Unsubsidized Loan has a lower interest rate than the Graduate PLUS Loan.
What happens if I do not borrow during the 2025-2026 academic year?
You would be subject to the new OBBBA loan limits and would only be eligible to borrow up to $50,000 in Federal Direct Unsubsidized Loan funding each academic year.
What do I need to do to establish legacy borrower status?
If you have not yet completed a 2025-2026 FAFSA, complete the 2025-2026 FAFSA at studentaid.gov. This should be done by May 1st at the latest. Once we receive your FAFSA, we will package your full student loan eligibility and then you can contact our office if you have questions about how much to borrow, if your full amount is not needed.
If you have already completed a FAFSA for the 2025-2026 academic year, please email our office at financialaid@ulaw.uchicago.edu and let us know how much you would like to borrow.
If this would be your first time borrowing a federal student loan, you will also need to complete a Master Promissory Note (MPN) and Entrance Counseling if you haven’t already done so. Federal student loan funding will not be disbursed to your student account until these items are completed.
Federal student loan funding must disburse to your student account prior to the end of the Spring 2026 quarter in order to establish your legacy borrower status moving forward.
Do I need to borrow a Graduate PLUS loan now to maintain my Graduate PLUS loan eligibility moving forward?
No, current guidance from the Department of Education states that students only need to have borrowed any federal student loan prior to July 1, 2026 for their current degree program in order to establish their legacy borrower status. You can borrow a Federal Direct Unsubsidized Loan for the 2025-2026 academic year and establish your legacy borrower status moving forward.
If I have already borrowed a federal student loan for the JD program, can I waive my legacy status and be eligible for the $50,000 Unsubsidized Loan in future years?
No, the Department of Education has confirmed that a student's legacy borrower status is predetermined and cannot be waived. If you have already borrowed a federal student loan for your UChicago Law JD program, then you will be considered a legacy student and eligible for $20,500 in Unsubsidized Loan funding and Graduate PLUS Loan funding up to the remainder of your cost of attendance.
I am a current 2L and I borrowed during my 1L year but I have not yet borrowed for my 2L year. Do I need to borrow for my 2L year too?
Current Department of Education guidance states that students will be flagged as legacy borrowers if they have borrowed a federal student loan for their current degree program, and maintain continuous enrollment. However, federal systems may take time to reflect this legacy status for eligible students who did not borrow during the 2025-2026 academic year. We are waiting on final implementation guidance on this but if you have not yet borrowed during the 2025-2026 academic year, you may want to consider borrowing a small loan before the end of the Spring 2026 quarter to prevent any delays with 2026-2027 loans. If you have any questions, please contact our office at financialaid@law.uchicago.edu or stop by one of our office hours during April or May.
What happens if I take a leave of absence or start a new dual degree program?
Unfortunately, any break in your continuous enrollment in the JD program on or after July 1, 2026, will mean you no longer qualify for legacy borrower status and will be subject to the new loan limits under the OBBBA, including the new lifetime borrowing limits. A break in continuous enrollment includes being on a leave of absence on or after July 1, 2026, or starting a different degree program, including a dual degree program, on or after July 1, 2026. If you have any questions about this, please contact our office at financialaid@law.uchicago.edu or stop by one of our office hours during April or May.
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 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.