One Big Beautiful Bill (OB3): What Law Students Need to Know
H.R.1 Bill, commonly known as the One Big Beautiful Bill (OB3), was enacted into law on July 4, 2025. As a result, significant changes to the Federal Financial Aid programs become effective July 1, 2026. Details below reflect the most current publicly available information and may change once the U.S. Department of Education (ED) issues final rules. CWSL will update this page as federal guidance is released.
What’s Changing and When
Beginning July 1, 2026, federal student aid rules will change substantially for
graduate and professional students—including the discontinuation of the Grad PLUS
Loan program for new borrowing under OB3.
Effective date: July 1, 2026.
Guidance status: ED has not yet released final implementation details. CWSL will continue updating
this page as federal information becomes available.
Legacy (Grandfathering) Provisions for Current Borrowers
If you received a Federal Direct Loan disbursement (Unsubsidized or Grad PLUS) before July 1, 2026, you may be allowed to continue borrowing under existing (pre‑OB3) loan rules for a transition period—up to three additional academic years or until you complete your program, whichever comes first.
Federal Loan Limits Under OB3
OB3 introduces new annual and lifetime borrowing caps for federal student loans, significantly changing how graduate and professional students finance their education. Under the new rules, Graduate PLUS Loans are eliminated for new borrowers, and borrowing is limited to updated Direct Unsubsidized Loan caps: law students may borrow up to $50,000 annually with a $200,000 aggregate limit. Legacy provisions allow certain continuing students to retain current borrowing rules for up to three additional years if they meet specific eligibility criteria.
- Federal Direct Unsubsidized Annual Limit: $50,000
- Federal Direct Unsubsidized Aggregate Limit: $257,500
For more detailed information, please see the following document, OB3 What Professional Students Need to Know.
Enrollment-Based Loan Proration
Beginning July 1, 2026, federal loan amounts will be prorated, which means the amount you can borrow will be adjusted based on how many units you’re taking. If you’re enrolled part time, you will receive a reduced loan amount, similar to how grant funding is prorated for Undergraduate students who take fewer units. This rule applies to all part‑time students, and unlike other OB3 changes, there is no legacy clause—even continuing students who may qualify for other legacy provisions will still have their loans prorated if they attend less than full time. Additional clarification on enrollment‑based proration will be provided once the U.S. Department of Education releases official guidance.
The End of Grad PLUS: Planning for Funding Gaps
With Grad PLUS Loans ending for new borrowers on July 1, 2026, many graduate and professional students will face funding gaps, since federal loans will no longer cover the full cost of attendance. Under OB3, students can only borrow up to the new annual and lifetime Unsubsidized Loan limits, and many will reach those caps before meeting their full educational expenses. Experts anticipate that more students will need to explore alternative financing, including external scholarships and private loans, to bridge the remaining costs. It is recommended that students plan ahead, understand their individual funding gap, explore all available resources, review credit report for accuracy if they plan to use credit‑based loans, and create a plan for covering expenses beyond federal loan limits.
What This Means for You (Student Scenarios)
1) Current students may retain legacy borrowing rules.
2) New students must plan for Unsubsidized-only federal borrowing.
3) Part-time enrollment reduces Federal Unsubsidized Loan eligibility.
4) LOA/withdrawal timing may affect eligibility.
Additional Financial Wellness & Planning Resources
- CWSL Loan Information Page
- Private Loan Comparison Tool
- AccessLex MAX Financial Wellness Program
- AccessLex Student Loan Calculator
- AccessLex Student Aid Policy & Action Center
- AccessLex Scholarship Databank
Financial Aid Office
The Financial Aid Office is here to help you navigate the financial aid process. If you require assistance or have questions about financial aid, please contact our office.
(619) 615-1460
San Diego, CA 92101