The federal financial aid system is being overhauled with rules set to take effect in July 2026 that will limit access to certain student loans and reshape repayment options. The Department of Education has been negotiating implementation terms since November under provisions of the One Big Beautiful Bill, and institutions and financial-aid offices should expect new eligibility and disbursement procedures. Experts warn millions of borrowers who are behind on payments will face tightened options next year; advisers urge immediate action to secure relief under the outgoing rules. Universities will need to update counseling, default-prevention programs and communications to students and alumni to reflect narrowed paths to borrower relief and expanded short-term grant funding for workforce training.