U.S. Department of Education Concludes Negotiated Rulemaking Session to Implement the One Big Beautiful Bill Act's Loan Provisions

Today, the U.S. Department of Education (the Department) concluded its negotiated rulemaking session, where the Reimagining and Improving Student Education (RISE) Committee reached consensus on the entire package of federal student loan-related changes advanced by the One Big Beautiful Bill Act (OBBBA). The RISE Committee met over the course of two weeks in September and November to place commonsense limits and guardrails on future student loan borrowing and simplify the federal student loan repayment system.

Under President Trump's OBBBA, the Department's rulemaking will eliminate the Grad PLUS program, which has fueled unsustainable student loan borrowing, cap Parent PLUS Loans, sunset the confusing maze of student loan repayment plans created by the Obama and Biden Administrations, and create a new and simplified Repayment Assistance Plan (RAP). Beginning in July 2026, the OBBBA caps annual loans for new borrowers at $20,500 for graduate students ($100,000 aggregate limit), and $50,000 for professional students ($200,000 aggregate limit) - a term the committee defined consistent with existing regulatory text. Previously, graduate students could borrow up to the cost of attendance, which led institutions to offer expensive graduate programs with a negative return on investment.

"We appreciate the committee's efforts to assist the Department in implementing President Trump's One Big Beautiful Bill Act, which will simplify our complex student loan repayment system and better align higher education with workforce needs," said Under Secretary of Education Nicholas Kent. "The consensus language agreed upon by the negotiators today will help drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition. This will benefit borrowers who will no longer be pushed into insurmountable debt to finance degrees that do not pay off."

In total, negotiators reviewed and agreed to 17 regulatory provisions, including changes to the RAP and the definition of a professional student. In response to suggestions from negotiators on the Committee, the Department made more than a dozen changes to its proposed regulatory language.

Background:

Section 492 of the Higher Education Act (HEA) requires that the Secretary of Education solicit public comment in the development of proposed regulations before publishing a Notice of Proposed Rulemaking (NPRM) implementing programs authorized under Title IV of the HEA. After obtaining advice and recommendations from the public and stakeholders, the Secretary conducts negotiated rulemaking to develop the proposed regulations.

In July, President Trump signed the OBBBA into law, which implemented sweeping changes to simplify the overly complex student loan repayment system and reform how future loans are made to students and families. On July 24, the Department announced its intention to establish the RISE Committee to prepare proposed regulations for federal student loan-related changes under Title IV. In addition, the Department hosted a virtual public hearing on August 7 to gather robust feedback on ways to streamline and improve higher education regulations.

The Department will begin drafting an NPRM for publication in the Federal Register for public comment. This negotiated rulemaking session is the second of several negotiating rulemaking proceedings planned by the Trump Administration to reform and streamline regulations in postsecondary education.

For more information on the negotiated rulemaking process, see here.

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