Full Breakdown
U.S. Department of Education Concludes Rulemaking for One Big Beautiful Bill Act
11/19/2025, 5:34:01 AM
Overview of the Rulemaking Session
The U.S. Department of Education has finalized its negotiated rulemaking session concerning the implementation of the One Big Beautiful Bill Act (OBBBA), which was signed into law by President Donald Trump in July 2023. The Reimagining and Improving Student Education (RISE) Committee reached a consensus on a comprehensive package of changes aimed at reforming federal student loan policies. This session, which took place over two weeks in September and November, focused on establishing limits on student loan borrowing and simplifying the repayment system.
Key Changes to Student Loan Policies
The OBBBA introduces significant modifications to federal student loan programs. Notably, it will eliminate the Grad PLUS program, which has been criticized for contributing to excessive borrowing. Additionally, the act will cap Parent PLUS Loans and replace the existing repayment plans with a new Repayment Assistance Plan (RAP). Starting in July 2026, annual loan limits for new graduate borrowers will be set at $20,500, with a $100,000 aggregate limit, while professional students will have a cap of $50,000 and a $200,000 aggregate limit. These changes aim to address the rising costs of higher education and hold universities accountable for student outcomes.
Official Statements & Responses
Under Secretary of Education Nicholas Kent expressed appreciation for the committee's efforts, stating that the new regulations will simplify the student loan repayment system and align higher education with workforce needs. He emphasized that the consensus reached during the negotiations will help reduce tuition costs and prevent borrowers from incurring unmanageable debt.
Criticism & Opposition
Despite the positive reception from some officials, there are concerns regarding the potential impact of the OBBBA on students and educational institutions. Critics argue that capping loans may limit access to necessary funding for students pursuing advanced degrees, potentially exacerbating existing inequalities in higher education access.
Conflicting Reports & Gaps
While the Department of Education has outlined the changes and their intended benefits, there are gaps in understanding how these reforms will be implemented in practice. The specifics of the RAP and its effectiveness in reducing borrower debt remain unclear, and further details are awaited as the Department prepares to draft a Notice of Proposed Rulemaking (NPRM) for public comment.
What's Next
The Department of Education will begin drafting the NPRM, which will be published in the Federal Register for public feedback. This rulemaking session is part of a broader effort by the Trump Administration to reform and streamline regulations in postsecondary education, with additional sessions anticipated in the future.
Verbatim Quotes
“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.” — U.S. Department of Education Press Release
“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,” — Nicholas Kent, Under Secretary of Education
“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.” — Nicholas Kent, Under Secretary of Education
