Aurora Hons
Staff Writer
Recent federal legislation could bring significant changes to how Idaho State University students pay for college, particularly those who rely on federal financial aid programs.
The One Big Beautiful Bill Act (BBBA), passed on July 4, 2025, is part of a broader federal effort to restructure government spending and adjust funding priorities across multiple sectors, including higher education. While supporters argue the bill increases fiscal accountability, critics warn it may place additional financial strain on students and universities.
Several provisions in the legislation directly affect college affordability, including changes to federal student loan borrowing limits, eligibility requirements for certain aid programs and new tax measures tied to university endowments. Implementation of these changes is expected to begin as early as July.
Here’s what is changing, and when. Under the BBBA, federal student aid programs will undergo adjustments that may affect how much students can borrow and who qualifies for assistance. The bill introduces new limits on federal student loan borrowing, potentially reducing the maximum amount students can take out each academic year.
In addition, eligibility requirements for programs such as Pell Grants may shift, depending on income thresholds and enrollment status. Universities with large endowments may also face increased federal taxes, a change that could indirectly impact institutional budgets and student services.
Under the legislation, new federal borrowing limits will significantly reshape how much students and families can rely on federal loans. Graduate students will be capped at $20,500 in federal loans per year, with a lifetime maximum of $100,000 for most programs. Students enrolled in professional programs such as law or medical school will face higher caps, limited to $50,000 annually and $200,000 over their lifetime.
The bill also places new restrictions on Parent PLUS loans, limiting parents to borrowing no more than $20,000 per year and $65,000 total per dependent student. In addition, the overall lifetime limit on federal student borrowing, excluding Parent PLUS loans, will be capped at approximately $257,500. Graduate PLUS loans for new borrowers will be eliminated beginning July 1, 2026, marking a major shift in how graduate education is financed through federal aid.
“I am worried about this legislation, I’m not from a particularly wealthy family and I’m working to put myself through college alone.” said Sophie Grimmett, a local resident. “I worry there might be a decrease in those seeking higher education because of the limits on borrowing, especially those who are from lower income backgrounds such as myself.”
ISU students who rely on federal aid, including Pell Grants, subsidized loans, and unsubsidized loans, could be among those most impacted. First-generation students, low-income students, and those already borrowing close to federal caps may feel the effects most immediately.
“Objectively, I would say that the bill largely is bad, of course there are small parts that do create meaningful, beneficial change,” said James Gudmunson, an ISU student. “However in terms of higher education, I think it will make most college students worse off.”
Students should monitor their financial aid portals for updates, as well as schedule appointments with the Office of Student Financial Aid to better understand how their individual aid packages may change.
While the full impact of the One Big Beautiful Bill Act remains uncertain, university administrators stress the importance of staying informed and proactive. For now, students are left waiting to see how the legislation will reshape the cost of higher education and how institutions like ISU will adapt. As with many policy shifts, time will tell how these changes unfold, but students are encouraged to seek information early and make use of available campus resources.
The bill might leave less people going into higher education, but if you have to take out more than $20,000 a year, you probably shouldn’t be in higher education in the first place.