Education Highlights from the One Big Beautiful Bill Act
The “One Big Beautiful Bill Act,” referred to as H.R. 1, was signed by President Donald Trump on July 4, 2025. This extensive piece of legislation impacts various policies, including those related to paying for higher education. Here are five key changes that may affect how students and families finance education beyond high school and manage student loan repayment.
| | Workforce Pell Grant Program | | The law creates a Workforce Pell Grant program. Eligible programs must be between 8-15 weeks, offered by accredited institutions, and lead to a “portable, stackable” credential. These programs must be approved by the state governor and align with in-demand jobs and meet employers’ needs. Remedial, non-credit, English language learning, and study abroad coursework are not eligible for funding. Additional requirements exist, and details will be worked out through the federal negotiated rulemaking process. The program is scheduled to take effect on July 1, 2026. | | Federal Parent PLUS Loan Limits | | Parent PLUS Loans are loans parents can borrow to help finance their child’s education. Currently, parents can borrow up to the total cost of education minus the total amount of other financial aid the student is receiving. H.R. 1 limits borrowing for all parents of a dependent student to no more than $20,000 per year per student with a $65,000 aggregate limit per student. This provision goes into effect on July 1, 2026. There is an exemption for parents who borrow a PLUS Loan before July 1, 2026, for up to three years. | Federal Graduate Loan Limits | | Graduate students can currently borrow up to $20,500 in Federal Direct Unsubsidized loans each year. H.R. 1 maintains this annual loan limit of $20,500 for graduate students and sets a $50,000 annual limit for professional students. The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students, excluding amounts borrowed as an undergraduate. The new limit for professional students is effective July 1, 2026. |
Federal Graduate PLUS Loans
| | Graduate PLUS Loans are loans graduate students can borrow to help finance their education. Currently, students can borrow up to the total cost of education minus the total amount of other financial aid (other financial aid includes the $20,500 in Federal Direct Unsubsidized Loans). H.R. 1 eliminates the Graduate PLUS program, effective July 1, 2026. There is an exemption for students who borrow a Graduate PLUS loan before July 1, 2026, for up to three years. | Repaying Federal Student Loans | | |
Borrowers with new loans on or after July 1, 2026, will have two options to repay their federal student loans: a new standard repayment plan with fixed monthly payments or the new income-based plan, the Repayment Assistance Plan (RAP). Current borrowers with no new loans made on or after July 1, 2026, will continue to be eligible to enroll in the following repayment plans: current Standard, current Income Based (IBR), Graduated, Extended, or the new income-based repayment plan, RAP. Current borrowers enrolled in ICR, PAYE, or SAVE repayment plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP.
Note: Federal Student Aid (StudentAid.gov) has not yet updated the information on its website to reflect H.R. 1 or the new repayment criteria or options. Check with your loan servicer or continue to check the StudentAid.gov site in the coming months.
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Coming Soon: FAME will be launching a new webpage with more comprehensive information and additional details. These changes above reflect only a few of the many policy changes found in H.R. 1. Please visit FAMEmaine.com in the coming weeks for more details.
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Upcoming Event: FREE Student Loan Repayment Webinar
Interested in learning more about federal student loan repayment? FAME will be hosting a free student loan repayment webinar on Friday, July 31, 2025, featuring national student loan expert, Betsy Mayotte. Join us for Managing Your Student Loan Debt Crisis: What’s at Stake When You Ignore Your Student Loans to learn more about where things stand with student loans, tips to stay on track with repayment, and steps to take when repayment is a struggle.
| | | Check Out FAME’s Previous Tips and Resources | |
Tuesday Tips: Get Ready to Transition From High School to College! | FAME shares multiple resources to make preparing for your upcoming college year smooths possible. | | | | |
Many Maine families use a combination of savings, financial aid, and loans to afford higher education.
Before you borrow, be informed of your options including borrowing less, using forgivable loan options, and knowing the differences between federal, private, and Maine student loans with these FREE FAME resources.
| | FAME's College Access and Financial Education Team | | |
Mila Tappan
College Access and Outreach Manager
207-620-3504
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Floreka Mananga
New Mainer
Specialist
207-620-3530
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Jessica Whittier
College Access Counselor
207-620-3555
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Michelle Radley
College Access Counselor
207-620-3535
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Nikki Vachon
College Access Counselor
207-620-3529
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Mary Dyer
Financial Education Programs Manager
207-620-3556
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Steve Kautz
Financial Education Programs Specialist
207-620-3566
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Karin Parsons
College Savings
Counselor
207-620-3502
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Maire Pelletier
College Savings
Counselor
207-620-3508
Email Maire
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The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status, or sexual orientation. FAME is an equal opportunity employer, provider, and lender.
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