The U.S. Department of Education has completed a negotiated rulemaking session focused on federal student loan changes introduced by the One Big Beautiful Bill Act (OBBBA). The Reimagining and Improving Student Education (RISE) Committee, which convened over two weeks in September and November, reached consensus on all proposed regulatory changes to student loans.
Key provisions under the OBBBA include the elimination of the Grad PLUS program, capping Parent PLUS Loans, ending multiple repayment plans created by previous administrations, and introducing a new Repayment Assistance Plan (RAP). Starting July 2026, new borrowing limits will be set at $20,500 annually for graduate students with a $100,000 aggregate cap, and $50,000 annually for professional students with a $200,000 aggregate cap. Previously, graduate students could borrow up to their full cost of attendance.
Under Secretary of Education Nicholas Kent stated: “We appreciate the committee's efforts to assist the Department in implementing President Trump’s One Big Beautiful Bill Act, which will simplify our complex student loan repayment system and better align higher education with workforce needs. The consensus language agreed upon by the negotiators today will help drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition. This will benefit borrowers who will no longer be pushed into insurmountable debt to finance degrees that do not pay off.”
Negotiators reviewed 17 regulatory provisions during this process. The Department made more than twelve adjustments to its proposed regulations based on committee feedback.
Section 492 of the Higher Education Act requires public comment before publishing new regulations related to Title IV programs. Following President Trump’s signing of OBBBA in July—which aimed to simplify student loan repayment systems—the Department established the RISE Committee and held a virtual public hearing in August to gather input from stakeholders.
The Department now plans to draft a Notice of Proposed Rulemaking for publication in the Federal Register as part of ongoing efforts by the Trump Administration to reform postsecondary education regulations.
For further details about negotiated rulemaking procedures, visit here.
