The passage of the One Big Beautiful Bill (OBBB) has ushered in sweeping reforms to how American families plan and pay for college. Whether you’re a parent saving for your child’s education or a student navigating financial aid, here are the top three changes you need to know:
1. Student Loan Caps and Program Eliminations
Starting July 2026, federal student loans will face strict annual and lifetime borrowing limits. Graduate students will be capped at $100,000, and Parent PLUS loans are limited to $65,000 per dependent student. Additionally, the Grad PLUS loan program—once a lifeline for graduate students—is being eliminated. These changes could push families toward private loans and make graduate education less accessible. 1, 2
2. Expanded College Savings Options
OBBB significantly enhances the flexibility of 529 Savings Plans. Families can now use these funds for a broader range of K–12 expenses and workforce training programs. The bill also introduces Trump Accounts, a new savings vehicle seeded with $1,000 for children born between 2025 and 2028, offering tax-deferred growth and employer contribution options. 3
3. Pell Grant Reforms
While the Pell Grant program was spared major cuts, its eligibility rules have tightened. Students with high Student Aid Index (SAI) scores or those whose costs are already covered by other grants may no longer qualify. On the upside, Pell Grants can now be used for short-term job training programs, expanding access to non-traditional education paths. 4
Final Thought:
The Big Beautiful Bill has redefined the landscape of college financing. Families should revisit their savings strategies and financial aid expectations to stay ahead of these changes. Our college-focused website, integratedcollegiatestrategies.com, can start you down the path of uncovering strategies that can help you save ON the cost of college, not just how to save FOR college.
www.insidehighered.com/news/government/politics-elections/2025/07/04/big-beautiful-bill-means-big-changes-higher-ed
www.bestcolleges.com/news/what-college-students-need-to-know-one-big-beautiful-bill/
blog.getintocollege.com/blogs/2025/07/28/12/37/how-does-one-big-beautiful-bill-impact-saving-for-college
www.bestcolleges.com/news/what-college-students-need-to-know-one-big-beautiful-bill/
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/ SIPC.
This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.