Budget Reconciliation Summary Graduate Lending
Grad PLUS: Eliminates the Grad PLUS Loan Program. Annual Cap: Limits the amount of federal student aid a student can receive annually: • •
Graduate student – $20,500 Professional student – $50,000
Aggregate Cap: Limits the amount of federal student aid a student can receive in the aggregate: • •
Graduate student – $100,000 Professional student – $200,000
Lifetime Cap: Caps the lifetime amount any student can borrow at $257,500 ($200,000 for graduate/professional education, plus $57,500 for undergraduate education).
Loan Repayment
Changes the Standard Repayment timeline: • • • •
10 years for debt amounts less than $25,000 15 years for $25,000-$49,999 20 years for $50,000-$99,999 25 years for $100,000 or more
Eliminates all repayment plans authorized under Income-Contingent Repayment (ICR) regulations, as well as extended and graduated plans for new loans disbursed on or after July 1, 2026. For borrowers with existing loans disbursed prior to enactment of the bill, transitions those who are in an ICR Plan or an administrative forbearance to an existing IncomeBased Repayment Plan (IBR) or the new Repayment Assistance Plan. The transition will take place no later than July 1, 2028. Creates new Repayment Assistance Plan for loans disbursed on or after July 1, 2026, which bases monthly payments on Adjusted Gross Income (AGI): Income $10,000 or less Between $10,001 - $20,000 Between $20,001 - $30,000 Between $30,001 - $40,000 Between $40,001 - $50,000 Between $50,001 - $60,000
• •
Monthly Payment $10 1% of AGI 2% of AGI 3% of AGI 4% of AGI 5% of AGI
Income Between $60,001 - $70,000 Between $70,001 - $80,000 Between $80,001 - $90,000 Between $90,001 - $100,000 Over $100,000
Monthly Payment 6% of AGI 7% of AGI 8% of AGI 9% of AGI 10% of AGI
Provides student loan forgiveness after 360 qualifying monthly payments (30 years). Waives any unpaid monthly interest.