»One Big Beautiful Bill Act's Impact on Graduate Student Aid

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law. Significant provisions that will affect graduate students are slated to take effect on July 1, 2026.

Beginning with the Fall 2026 academic year, all federal loans will be required to be prorated if the student is enrolled in less than full-time status: 

• Law School: Full-time = 12 or more units
• All other Graduate Programs: Full-time = 9 or more units

In addition, if a student drops or withdraws from a term in which a federal loan was received, an adjustment in eligibility for a future term may be required.

For students who begin their program after July 1, 2026, Unsubsidized annual and aggregate loan limits will be based on the student’s program and students are not eligible for the Graduate PLUS loan.

• Professional Program (Law and Doctor of Pharmacy) students will have an Unsubsidized annual loan limit of $50,000 and an aggregate limit of $200,000. 
• All other graduate students will have an Unsubsidized annual loan limit of $20,500 and an aggregate limit of $100,000.

 These limits are outside of any debt from undergraduate studies. 

Continuing Chapman graduate students enrolled for 2025-26 who have borrowed at least one federal loan for their current program will be considered “Legacy” students. Legacy students:

• Will have an annual Unsubsidized loan limit of $20,500 and aggregate limit of $138,500 (including all federal loans received for undergraduate study).
•  Can continue receiving a Graduate PLUS covering the difference of the established cost of attendance minus any other resources.  
• Will retain eligibility for the Graduate PLUS loan for up to 3 academic years or the reminder of the expected time to credential for their current program, whichever is less. Note: students must still meet minimum credit criteria to be able to borrow the Graduate PLUS.

Important: Legacy students who completely withdraw from a term or who have a break in enrollment for any reason, will no longer be considered a Legacy student and will be ineligible for Graduate PLUS loan and will be subject to the “New” student loan provisions and limits. 

Students starting programs after June 30, 2026:

Federal Loans are limited to the amounts mentioned above. If you need additional funding, you may need to apply for a private loan. These loans are typically credit-based so planning is important.  

Students have a choice in lenders; each lender will have different terms, conditions, credit-requirements. Chapman has provided a list of lenders our students have used in the most recent years using the ELM Select tool. This tool can assist you in comparing lender’s options.

Continuing students (enrolled in current program prior to June 30, 2026):

If you meet the conditions above to be considered a “Legacy” student, you will be able to apply for the Graduate PLUS loan to meet your financial needs that are not covered by the Unsubsidized Federal Loan.

If you have not borrowed from the Federal Loan program for your current program, you may wish to borrow a small loan prior to the end of spring to establish your eligibility to borrow a Graduate PLUS loan for your current program. Please contact the Graduate Financial Aid team to assist you with questions or that process.

• Federal Student Aid OBBB Act Updates: Follow any updates related to the OBBBA and Financial Aid.
• National Association of Independent Colleges and Universities FAQ's about the OBBBA.
• NASFAA (National Association of Financial Aid Administators Aid Changes.