OB3 Info Center

OB3 is shorthand for the One Big Beautiful Bill, a law Congress passed in July 2025. The bill has significant implications for federal student aid, student loans, and loan repayment.

OB3 creates new loan limits, changes the type of loans available to borrowers, and changes the repayment plans available after graduation.

OB3’s effects vary depending on when you’re in school and when you borrow loans. Find your classification below to see how OB3 impacts you.

OB3, while passed by Congress, must go through the Department of Education’s rulemaking process before implementation. The Department of Education is currently undergoing rulemaking for OB3. We expect draft, then final, rulemaking language in early 2026. Will we continue to update this page and our advising as details are finalized. Please always defer to Federal Student Aid and the Department of Education for official information.

Many details about OB3’s impacts and implementation are not yet finalized. Will we continue to update this page and our advising as details are finalized, and host updated webinars throughout 2026. Please always defer to Federal Student Aid and the Department of Education for official information. You can also refer to UC Berkeley’s federal updates page.

If you’re a current student, you’ll continue to have the same loan options so long as you borrow any type of federal direct loan, for your current degree at Berkeley Law, prior to July 1, 2026.

Loan availability and limits

Currently, you can borrow up to $20,500 in unsubsidized loans each academic year. You can borrow up to the cost of attendance, minus gift aid, in Graduate PLUS loans. This will remain true so long as you borrow any federal direct student loan, while at Berkeley Law, prior to July 1, 2026. (Technically, you’ll need to borrow before the end of the Spring 2026 semester.) You will be subject to OB3’s legacy provision.

If you have not borrowed any federal direct student loans for your degree at Berkeley Law before July 1, 2026, you will be subject to OB3’s new loan limits. You will be able to borrow up to $50,000 in unsubsidized loans per academic year. You will not be able to borrow Graduate PLUS loans. You will have a limit of $200,000 for all graduate and professional school loans and a lifetime limit (including all graduate, professional, and undergraduate loans) of $257,500. These limits will apply even if you’ve borrowed loans in the past and/or repaid your loans.

Loan repayment

If you are finished borrowing loans by July 1, 2026, you’ll have access to the federal repayment plans as they currently exist. You’ll have multiple Income-Driven Repayment plan options, including Income-Based Repayment (IBR) and the Repayment Assistance Plan (RAP), the Standard 10-year plan, and the graduated and extended 10-30 year plans.

If you borrow any loans after July 1, 2026—even if you’re subject to OB’s legacy provision–you’ll have access to only two repayment plans: the Repayment Assistance Plan and the Standard Tiered 10-25 year plan. The Standard plan increases in length the higher your loan debt.

The Income-Based Repayment plan is based on 10-15% of your discretionary income. The Repayment Assistance Plan is based on 1-10% of your adjusted gross income. Both plans are eligible for LRAP and 10-year PSLF. RAP has an interest subsidy if your payments are too small to cover the interest that accrues on your loans each month, preventing your loans from growing. If you don’t pursue 10-year PSLF, IBR lasts 20-25 years and RAP lasts 30.

If you’re an applicant or incoming student, you’ll be subject to OB3’s new loan limits and repayment options.

Loan availability and limits

You will be able to borrow up to $50,000 in unsubsidized loans per academic year. You will not be able to borrow Graduate PLUS loans. You will have a limit of $200,000 for all graduate and professional school loans and a lifetime limit (including all graduate, professional, and undergraduate loans) of $257,500. These limits will apply even if you’ve borrowed loans in the past and/or repaid your loans.

Loan repayment

You’ll have access to only two repayment plans: the Repayment Assistance Plan and the Standard 10-25 year plan. The Standard plan increases in length the higher your loan debt. The Repayment Assistance Plan is based on 1-10% of your adjusted gross income. It is eligible for LRAP and 10-year PSLF. RAP has an interest subsidy if your payments are too small to cover the interest that accrues on your loans each month, preventing your loans from growing. If you don’t pursue 10-year PSLF, RAP lasts 30 years.

The economic hardship and unemployment deferments will no longer be available. However, you can continue to access forbearances and/or reduce your RAP plan down to $10/month.

If you’re an incoming transfer student, you’ll be subject to OB3’s new loan limits and repayment options.

Loan availability and limits

You will be able to borrow up to $50,000 in unsubsidized loans per academic year. You will not be able to borrow Graduate PLUS loans. You will have a limit of $200,000 for all graduate and professional school loans and a lifetime limit (including all graduate, professional, and undergraduate loans) of $257,500. These limits will apply even if you’ve borrowed loans in the past and/or repaid your loans.

Loan repayment

You’ll have access to only two repayment plans: the Repayment Assistance Plan and the Standard Tiered 10-25 year plan. The Standard plan increases in length the higher your loan debt. The Repayment Assistance Plan is based on 1-10% of your adjusted gross income. It is eligible for LRAP and 10-year PSLF. RAP has an interest subsidy if your payments are too small to cover the interest that accrues on your loans each month, preventing your loans from growing. If you don’t pursue 10-year PSLF, RAP lasts 30 years.

The economic hardship and unemployment deferments will no longer be available. However, you can continue to access general forbearances (no more than 9 months within a 24 month period) and/or reduce your RAP plan down to $10/month.

If you’re graduating in May 2026 or already finished with degree at Berkeley Law, you’ll have the repayment plan options available now, plus RAP.

Loan repayment

You’ll have access to multiple Income-Driven Repayment plans, including Income-Based Repayment (IBR) and the Repayment Assistance Plan (RAP), the Standard 10-year plan, and the graduated and extended 10-30 year plans. The Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) plans will be available until July 1, 2028, after which you’ll need to enroll in IBR or RAP.

The Income-Based Repayment plan is based on 10-15% of your discretionary income. The Repayment Assistance Plan is based on 1-10% of your adjusted gross income. Both plans are eligible for LRAP and 10-year PSLF. RAP has an interest subsidy if your payments are too small to cover the interest that accrues on your loans each month, preventing your loans from growing. If you don’t pursue 10-year PSLF, IBR lasts 20-25 years and RAP lasts 30.

The economic hardship and unemployment deferments will no longer be available. However, you can continue to access general forbearances (no more than 9 months within a 24 month period) and/or reduce your RAP plan down to $10/month.

If you’re a current student, you’ll continue to have the same loan options for up to three years so long as you borrow any type of federal direct loan, for your current degree at Berkeley Law, prior to July 1, 2026. If you’re an incoming LLM, JSD, or JSP student, you’ll be subject to OB3’s new borrowing limits.

Loan availability and limits

Currently, you can borrow up to $20,500 in unsubsidized loans each academic year. You can borrow up to the cost of attendance, minus gift aid, in Graduate PLUS loans. This will remain true so long as you borrow any federal direct student loan, while at Berkeley Law, prior to July 1, 2026. (Technically, you’ll need to borrow before the end of the Spring 2026 semester.) You will be subject to OB3’s legacy provision.

Incoming students will be able to borrow up to $20,500 in unsubsidized loans per academic year. You will not be able to borrow Graduate PLUS loans. You will have a limit of $100,000 for all graduate school loans and a lifetime limit (including all graduate, professional, and undergraduate loans) of $257,500. These limits will apply even if you’ve borrowed loans in the past and/or repaid your loans.

Loan repayment

If you are finished borrowing loans by July 1, 2026, you’ll have access to the federal repayment plans as they currently exist. You’ll have access to multiple Income-Driven Repayment plans, including Income-Based Repayment (IBR) and the Repayment Assistance Plan (RAP), the Standard 10-year plan, and the graduated and extended 10-30 year plans.

If you borrow any loans after July 1, 2026, you’ll have access to only two repayment plans: the Repayment Assistance Plan and the Standard Tiered 10-25 year plan. The plan increases in length the higher your loan debt.

The Income-Based Repayment plan is based on 10-15% of your discretionary income. The Repayment Assistance Plan is based on 1-10% of your adjusted gross income. Both plans are eligible for LRAP and 10-year PSLF. RAP has an interest subsidy if your payments are too small to cover the interest that accrues on your loans each month, preventing your loans from growing. If you don’t pursue 10-year PSLF, IBR lasts 20-25 years and RAP lasts 30.

AWAITING REGULATORY LANGUAGE

If you’re enrolled in a professional degree program (JD) and a graduate degree program (LLM, JSD, JSP, MA, MS, MPP, MBA, etc.), you will be subject to the loan limits of whichever program you’re enrolled in >50% of your credit hours. The loan limits will not stack on top of each other.

If you’re already enrolled in both programs and have borrowed loans for them prior to July 1, 2026, you’ll be subject to OB3’s legacy provisions. If you enroll in a new program after July 1, 2026, you’ll be subject to the above (new) limits.

Students who withdraw and return to Berkeley Law after July 1, 2026 will be subject to OB3’s new loan limits.

Students who take a leave of absence and return to Berkeley Law after July 1, 2026 will be subject to OB3’s new loan limits, unless their leave is approved in accordance with CFR 668.22.

If you consolidate your loans on or after July 1, 2026, you will be subject to the new borrowing limits and repayment plans.

Professional degrees under OB3 are JD, LLB, PharmD, DDS, DMD, DVM, DC, DCM, MD, OD, DO, DPM, DP, PodD, MDiv, MHL, PsyD, and PhD in clinical psychology. These degrees will be subject to professional borrowing limits ($50,000/year; $200,000/total).

Other degrees, like LLM, JSD, MBA, MPP–even if considered professional in your field–will be subject to graduate borrowing limits ($20,500/year; $100,000/total).

Your treatment as a borrower is automatic based on your enrollment and borrowing history. If, say, you’ve borrowed loans for your studies at Berkeley Law already, you cannot then opt out of the legacy provision and into OB3’s new loan limits.

Students subject to the new loan limits may consider borrowing private student loans to fund expenses up to the cost of attendance. Private student loan availability, interest rates, and repayment terms are often contingent upon things like credit score, earning capacity, degree, length of repayment, and eligible U.S. co-signers.

We recommend using our financial planner or the AccessLex Student Loan Calculator to help estimate your costs. Refer to UC Berkeley’s preferred lender list for a selection of private student loan options, including a calculator tool.

Berkeley Law is committed to supporting public interest students. Given the new federal student loan caps effective July 1, 2026, some incoming students may need to borrow private student loans. Starting with the Class of 2029 (and the transfer Class of 2028), Berkeley Law will provide up to $500 in private student loan support a month to JD graduates enrolled in LRAP. This $500 is a flat amount on top of the coverage LRAP already provides for federal student loans on an Income-Driven Repayment plan.

LRAP will provide funding equal to $500 a month, or your private student loan payment on a 10-year schedule, whichever is less. LRAP expires after 120 months of support, so if you select a longer repayment term to keep your payments affordable, you may have a balance left over you’ll need to cover on your own. Most private student loans do not have prepayment penalties.

We recommend using our financial planner or the AccessLex Student Loan Calculator to help estimate your costs. Refer to UC Berkeley’s preferred lender list for a selection of private student loan options, including a calculator tool. We update our LRAP Handbooks before each academic year and will publish a separate handbook for the new LRAP cohort (entering fall 2026 and beyond) later this year. Please reach out to the Financial Aid Office if you need guidance.