Introduction
On July 4, 2025, the One Big Beautiful Bill Act was signed into law, introducing significant revisions to federal student aid programs. Some of these changes went into effect immediately, while others will go into effect on July 1st, 2026.
Below are some highlights of the changes to come, and how they impact JD students.
Important Changes and Updates
What is changing and when?
Starting July 1, 2026, the Graduate PLUS loan program will be eliminated for new borrowers at UIC Law. Some continuing students will qualify for a limited exception and be able to continue borrowing Graduate PLUS Loans.
New Annual Direct Unsubsidized Professional Loan Limit
$50,000
New Aggregate Borrowing Limit for Professional Students
$200,000
New Lifetime Borrowing Limit
$257,500 for all Federal Direct loans, including Graduate PLUS, for all levels of study.
*Continuing students can continue to borrow Graduate PLUS beyond this limit while they qualify for the limited exception. If they cease to qualify for limited exception for any reason, they will be subject to the new limits outlined above.*
Limited Exception
The law allows some students to continue borrowing the Graduate PLUS without being subject to the new Direct Unsubsidized lifetime borrowing limits under a limited exception through their time to degree completion, for a maximum of three years.
Students may qualify for the limited exception if:
- They remain continuously enrolled in the same program of study at the same institution as of June 30, 2026
- They had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026
- The limited exception maintains the current annual limit of $20,500 for Direct Unsubsidized Loans. Students cannot elect to waive their limited exception eligibility
- They do not exceed a three-year timeline to complete their degree. Part-time students will NOT qualify for a limited exception after their third academic year at UIC Law
Student Loan Proration
Students who enroll part-time will have their Federal Direct Unsubsidized and/or Graduate PLUS Loans (if they qualify for Graduate PLUS under the limited exception) prorated if they enroll in less than 12 credit hours for a fall or spring term.
Federal Loan Repayment Plans
Student Loan Repayment Options As of July 1, 2026:
https://www.nasfaa.org/uploads/documents/OB3_Repayment_Plan_Chart.pdf
Frequently Asked Questions
We encourage students to contact our office before withdrawing from a term or taking a leave of absence, as doing so may affect limited exception eligibility.
Who Qualifies for the Limited Exception?
You may qualify if you:
- Received a Federal Direct Loan (Direct Unsubsidized or Graduate PLUS Loan) for your current JD program before July 1, 2026.
- Remain continuously enrolled in the JD program at UIC.
- Complete your JD degree within three years, which is the published length of the program. *The US Department of Education has defined the length of program by full-time enrollment timeframe. Part-time students are subject to the three-year timeframe for legacy status.
What are the Benefits of Limited Exception Status?
Students with Limited Exception are eligible to continue borrowing the Direct Unsubsidized Loan up to $20,500 and a Graduate PLUS Loan up to their remaining cost of attendance. They are not subject to the lifetime borrowing maximum of $257,500 while they retain legacy status.
How Long Can I Keep My Legacy Status?
Legacy eligibility is not permanent. You may continue to borrow under the previous federal loan rules until the earlier of:
- Completing your current academic program, or
- Reaching the maximum program time to credential of three years for JD students.
Once your legacy eligibility ends, you will be subject to the new federal loan limits.
What if I Withdraw from a Class or Take a Leave of Absence?
Withdrawing from a class or taking an approved leave of absence does not automatically end your eligibility. However, continued eligibility depends on whether you:
- Return to the same graduate or professional program at UIC.
- Maintain continuous enrollment as defined by your academic program.
- Complete your program within the allowable three-year legacy timeframe for JD students.
If you return after your legacy eligibility has expired or enroll in a different academic program, you will be subject to the new federal loan limits.
What if I Change Programs?
The legacy provision is tied to the specific program in which you received your qualifying federal loan.
Examples of changes that generally end legacy eligibility include:
- Completing a master’s degree and beginning a law program.
- Completing one professional degree and beginning another.
- Transferring into a different graduate or professional degree program (this includes students in dual degree programs).
- Transferring to another institution.
If you begin a new graduate or professional program after July 1, 2026, you are considered a new borrower for that program and will be subject to the current federal loan limits, even if you previously qualified for the legacy provision.
Does the Length of My Program Affect My Legacy Eligibility?
Legacy eligibility is limited to UIC Law’s published length of three academic years for a Juris Doctorate degree.
An academic year is measured by enrollment over the Fall, Spring, and Summer terms. Part-time enrollment in any given term counts as one full semester towards time to credential.
For example:
- Enrollment in the Fall, Spring, and Summer terms count as one academic year.
- Enrollment in the Fall and Spring terms count as one academic year.
- Enrollment in the Fall and Summer or Spring and Summer terms count as one academic year.
- Taking a third (summer) term in an academic year does NOT accelerate pace to credential or count as an additional semester.
updates
***The One Big Beautiful Bill Act Updates page will continue to be updated as new information becomes available. ***