The U.S. Department of Education has announced the immediate implementation of several higher education provisions in the One Big Beautiful Bill Act (OBBB). This announcement follows two weeks after President Trump signed the OBBB into law, aiming to simplify federal student aid programs and repayment options.
“President Trump’s One Big Beautiful Bill is a historic win for students, families, and taxpayers. The OBBB delivers for student borrowers in a big way – simplifying the student loan repayment system, funding the $10.5 billion shortfall in Pell Grant funding left by the previous administration, supporting short-term career-focused programs that train workers for in-demand jobs, and holding colleges accountable by eliminating student loan eligibility for programs that leave students worse off than if they had never enrolled,” said Acting Under Secretary James Bergeron. “Today’s announcement is the first step in the implementation process, and we look forward to building the President’s vision for education and training beyond high school.”
The Dear Colleague Letter (DCL) issued provides preliminary guidance to institutions of higher education on changes related to income-based repayment plans, repayment options for parents, loan limits for part-time students, and regulations from Biden's era concerning borrower defense to repayment and closed school discharge.
Additional key provisions such as developing a new Repayment Assistance Plan and Workforce Pell Grant program will take effect next year with further changes planned over subsequent years. Further guidance and regulations will be provided by the Department at a later date.
A copy of the DCL can be accessed online.
