The U.S. Department of Education today issued a ‘Dear Colleague Letter’ (DCL) detailing the immediate implementation of several higher education provisions included in the One Big Beautiful Bill Act (OBBB). This action follows President Trump’s signing of the OBBB into law just two weeks ago, marking a major step forward in streamlining federal student aid and loan repayment programs.
“President Trump’s One Big Beautiful Bill is a landmark victory for students, families, and taxpayers,” said Acting Under Secretary James Bergeron. “The OBBB brings transformative change to the student loan system—simplifying repayment plans, addressing the $10.5 billion Pell Grant shortfall inherited from the previous administration, expanding access to career-focused programs that prepare workers for in-demand jobs, and ensuring accountability by ending loan eligibility for programs that leave students worse off than when they started. Today’s announcement is just the beginning of our work to realize the President’s vision for postsecondary education and workforce training.”
The DCL offers initial guidance for colleges, universities, and Federal Student Aid (FSA) partners regarding upcoming adjustments to income-based repayment plans, loan options for parents, borrowing limits for part-time students, and revisions to borrower defense and closed school discharge rules established under the prior administration.
Additional provisions—such as the new Repayment Assistance Plan and the Workforce Pell Grant initiative—are slated to launch next year, with other reforms rolling out over the coming years. The Department plans to issue further updates and regulatory guidance as the implementation process continues.
