The U.S. Department of Education today released a ‘Dear Colleague Letter’ (DCL) outlining the immediate implementation of numerous higher education provisions in the One Big Beautiful Bill Act (OBBB). This action comes two weeks after President Trump signed the OBBB into law – delivering historic victories that will simplify federal student aid programs and repayment options.
“President Trump’s One Big Beautiful Bill is a historic win for students, families, and taxpayers. The OBBB delivers for student borrowers in a big way – simplifying the student loan repayment system, funding the $10.5 billion shortfall in Pell Grant funding left by the previous administration, supporting short-term career focused programs that train workers for in-demand jobs, and holding colleges accountable by eliminating student loan eligibility for programs that leave students worse off than if they had never enrolled,” said Acting Under Secretary James Bergeron. “Today’s announcement is the first step in the implementation process, and we look forward to building the President’s vision for education and training beyond high school.”
The DCL provides preliminary guidance to institutions of higher education and FSA’s partners on changes to income-based repayment plans, repayment options for parents, loan limits for part-time students, and Biden-era borrower defense to repayment and closed school discharge regulations.
Other key provisions, such as building the new Repayment Assistance Plan and the new Workforce Pell Grant program, will become effective next year, with other changes phased in over the next few years. The Department will issue further guidance and regulations at a future date.
A copy of the DCL can be read here.
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