Key Provisions of the One Big Beautiful Bill Act Now in Effect
The Department of Education published a list of provisions in the One Big Beautiful Bill Act (OBBB) that became effective as of the bill’s enactment. The provisions, changes, and timeline for implementation are:
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Changes to income-based repayment: The OBBB eliminated the partial hardship requirement for student loan borrowers to be eligible for the income-based repayment (IBR) plan. This change is effective immediately.
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Parent PLUS repayment options: Borrowers with a consolidation loan that includes a Parent PLUS loan can now enroll in the IBR plan. This change is effective immediately.
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Loan limits for part-time students: Students enrolled below full-time will have their annual loan limit reduced by a proportionate amount. The Department is still working to create a schedule of reductions for students and will publish it for public comment later this year. This change will be effective for the 2026-27 academic year.
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Public Service Loan Forgiveness (PSLF) program: Payments made under the new income-driven repayment plan are eligible to count towards PSLF forgiveness. This change is effective immediately.
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Borrower defense to repayment and closed school discharge regulations: Both regulations have their implementation delayed until 2035. Both regulations will remain in effect, but under their July 1, 2020 terms.
Additional guidance on other regulations and guidance regarding OBBB provisions will be provided later this year.
For more information, please contact:
Justin Monk