One Big Beautiful Bill Act (OBBBA) Financial Aid Updates
Last updated: April 23, 2026
The OBBBA introduces significant changes to federal student aid beginning July 1, 2026, unless otherwise noted. The most current information available to us regarding these changes and their impact on HMSOM students is below. We are closely monitoring this legislation and will update this page as necessary.
Please contact us with any questions. We are available to support you: robert.macauley@hmhn.org; diana.parra@hmhn.org
Please Note:
Hackensack Meridian School of Medicine does not have the authority to grant exceptions to regulations or changes mandated by the federal government. The information provided below references impact to professional students only in our MD program.
Federal Direct Graduate PLUS Loans
Prior to the implementation of the OBBBA, Grad PLUS loans allowed professional students to borrow up to the full cost of attendance, minus other aid. As of July 1, 2026, the option to borrow a Grad PLUS loan will be eliminated for students who have not previously borrowed a Federal Direct Loan or are in a different degree program or institution than they were when they borrowed.
Students who previously borrowed a federal direct loan of any kind while in their current degree program at their current institution, before July 1, 2026, may borrow a Grad PLUS loan for up to three additional academic years or until they complete their program, whichever comes first. This limited exception/legacy provision applies only for continuous enrollment in the degree program in which the student was enrolled when they borrowed their federal loan. Students who take an LOA that exceeds 180 days within a twelve-month period will not retain pre-OBBBA legacy provision upon return. Incoming or continuing students who have not borrowed a Federal Direct Loan of any kind for their current degree program prior to July 1, 2026, will not retain eligibility for Grad PLUS loans.
Federal Direct Unsubsidized Loans for Professional Students in Our MD Program
Professional students will be subject to new annual and lifetime borrowing caps as detailed in the chart below. These limits do not include amounts borrowed as an undergraduate.
| Effective 7/1/2026 | Annual Maximum | Lifetime (Professional) |
|---|---|---|
| Professional | $50,000 | $200,000 |
Pre-OBBBA legacy loan limits will continue to apply to students who received a Federal Direct Loan of any kind before July 1, 2026, for up to three more academic years or until they finish their degree program, whichever comes first. This limited exception/legacy provision applies only for continuous enrollment in the degree program in which the student was enrolled when they first borrowed.
Pre-OBBBA Legacy Provision Relevant to HMSOM
| Effective 7/2/2026 | Annual Maximum | Lifetime |
|---|---|---|
| Direct Unsubsidized Loan | $47,167 | $224,000 |
| Direct Graduate Plus Loan | Up to Cost of Attendance | No Cap |
Federal Loans Lifetime Limits
Pre-OBBBA legacy loan limits will continue to apply to students who received a Federal Direct Loan of any kind before July 1, 2026, for up to three more academic years or until they finish their degree program, whichever comes first. This limited exception/legacy provision applies only for continuous enrollment in the degree program the student was enrolled in when they first borrowed.
As of April 17, 2026, students ineligible for pre-OBBBA legacy provisions will be subject to the new $257,500 lifetime borrowing limit that will apply to all federal student loans excluding Parent PLUS Loans. This includes previously borrowed Graduate PLUS loans.
If at any time a student no longer qualifies for the limited exception/legacy provision, loans borrowed prior to July 1, 2026, will be counted in the new loan limits.
Leave of Absence Federal Loan Eligibility
An approved LOA that meets Federal Title IV criteria, 34 CFR § 668.22, does not count as a withdrawal. A student on an LOA approved by HMSOM will retain their pre-OBBBA legacy eligibility for federal loans provided they return within the approved timeframe. The federal regulatory standard allows up to 180 days within a 12-month period for a student to return. If a student does not return by the end of the approved LOA, they are treated as withdrawn for federal purposes. This withdrawal constitutes a break in enrollment and will result in the loss of pre-OBBBA legacy protections. In this case, future borrowing would be subject to the new OBBBA rules.
- A student who is inactive but on an approved LOA is not considered to have a break in enrollment for federal purposes, and their pre-OBBBA legacy eligibility is preserved.
- A student who becomes inactive without an approved LOA is treated as having a break in enrollment, which affects both continuous enrollment status and pre-OBBBA legacy eligibility.
- If a student with pre-OBBBA legacy provision takes an LOA that exceeds 180 days within a twelve-month period, the student will no longer be eligible for legacy provision and will be held to the new federal policy.
In summary, if a student takes an approved LOA and returns within 180 days during a twelve-month period, their pre-OBBBA legacy eligibility is preserved. If the LOA is exceeded, the student withdraws, or the student becomes inactive without an approved LOA, this is treated as a break in enrollment, and pre-OBBBA legacy eligibility may be lost.