Understanding upcoming financial aid changes and what they mean for your next step

Starting July 1, 2026, new federal student loan changes will affect how graduate students pay for school. 

If you’ve been researching graduate programs lately, you may have seen headlines about the One Big Beautiful Bill Act. There’s a lot of information out there, and not all of it is easy to follow. 

If you’re still exploring your options, you might find it helpful to start with What is a graduate degree? and What is a professional degree? before diving into these updates.

Here’s a clear breakdown of what’s changing and how KU can help you plan your next step with confidence.

What is the One Big Beautiful Bill Act?

The One Big Beautiful Bill Act refers to recent federal legislation that includes updates to financial aid programs.

One of the most talked-about changes is the planned phase-out of Grad PLUS loans, which have historically helped graduate and professional students cover remaining costs after other aid. 

What is changing for graduate students

Grad PLUS loans are being phased out

Grad PLUS loans have allowed graduate students to borrow up to the full cost of attendance. Under the new legislation, these loans will be eliminated for new borrowers beginning July 1, 2026.

Without Grad PLUS loans, students will rely more on Direct Unsubsidized Loans, which now have stricter borrowing limits. 

Graduate students can borrow up to a set lifetime maximum, while professional students, such as those in law or medicine, have a higher limit. These caps make it more important to plan for any remaining costs beyond federal loan eligibility.

Repayment options are changing

The new legislation simplifies repayment options into fewer plans and phases out some existing income-driven repayment options. These changes may affect how long you repay your loans and how monthly payments are calculated after graduation.

What does this mean for you?

While these changes are important, they do not mean graduate school is out of reach.

Instead, they make planning ahead more important than ever.

You may want to:

• Explore scholarships and assistantships early
• Talk with financial aid counselors about your options
• Consider overall cost and long-term return on your degree
• Build a financial plan before you enroll
• Look into payment plans or other ways to manage costs not covered by loans

At KU, support is available to help you think through each of these steps.

How KU supports graduate students

KU is committed to helping graduate students navigate financial aid changes and find a path that works for them.

You will have access to:

• Financial aid counselors who can walk through your options 
• Graduate funding and assistantship opportunities
• Payment plan options to help spread out costs
• Tools to estimate your total cost and plan ahead

If you have questions, you don’t have to figure this out on your own.

Planning your next step

Changes like this can feel uncertain, but they are also a chance to be more intentional about your next step.

Graduate school is still a valuable investment in your future, and with the right plan, it can remain within reach. 

If KU is part of your plan, we are here to help you explore your options and move forward with confidence. If you're planning for graduate school, these changes could impact how you pay for your degree. Watch our video on the top 5 ways to pay for grad school to explore your options.