Philadelphia families with student loans should prepare for significant changes as new federal rules take effect by July 1, 2026. The One Big Beautiful Bill (OBBBA) alters borrowing limits, repayment options, and loan forgiveness eligibility. Parents relying on Parent PLUS loans will face new caps of $20,000 annually and $65,000 lifetime per child, pushing many towards private loans.
Graduate students will no longer have access to Graduate PLUS loans, and new repayment plans will only offer two options: a new Tiered Standard Plan and a Repayment Assistance Plan (RAP). Current borrowers can retain some old plan benefits but must consolidate existing Parent PLUS loans before the deadline to maintain access to income-driven repayment options…