The "One Big Beautiful Bill Act" (effective July 1, 2026) significantly alters federal student loans, capping Parent PLUS loans at $ 20 , 000 $ 2 0 , 0 0 0 annually and $ 65 , 000 $ 6 5 , 0 0 0 lifetime per student. It introduces a $ 257 , 500 $ 2 5 7 , 5 0 0 aggregate limit on all federal student loans and limits graduate unsubsidized loans to $ 20 , 500 $ 2 0 , 5 0 0 annually, while removing Graduate PLUS loans.
Beginning in July 2026, the OBBBA caps annual loans for new borrowers at $20,500 for graduate students ($100,000 aggregate limit), and $50,000 for professional students ($200,000 aggregate limit) – a term the committee defined consistent with existing regulatory text.
Changes to Current Income-Based Repayment (IBR) Plan
Borrowers are no longer required to demonstrate a partial financial hardship. Cancellation for balances of loans repaid under IBR at 25 years, or 20 years for new borrowers is retained, and covered income contingent loans may be repaid under IBR.
In most of the United States, the 2025 CLL value for one-unit properties will be $806,500, an increase of $39,950 (or 5.2 percent) from 2024. The Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises' baseline CLL value each year to reflect the change in the average U.S. home price.
Increased limit for tax deductions for state and local taxes
From January 1, 2025, to December 31, 2029, individuals may take a tax deduction for up to $40,000 of state and local taxes ($20,000 if married filing separately), which is an increase from $10,000 previously.
The OBBBA creates a new $6,000 senior tax deduction for each taxpayer 65 and older (up to $12,000 for married couples) starting with the 2025 tax year and running through 2028. It phases out for single filers with a modified adjusted gross income above $75,000 and joint filers above $150,000.
What is the new SALT cap for 2025? Under new tax law, the SALT deduction cap increased to $40,000 for most filers ($20,000 for those married filing separately) beginning in tax year 2025. The cap will also see a 1% annual increase through tax year 2029.
The $100,000 Loophole.
Under this loophole, if the borrower's net investment income for the year is no more than $1,000, your taxable imputed interest income is zero.
Key Takeaways. The salary you need to buy a $500,000 home with a 30-year mortgage ranges between about $130,000 and $256,000. A common homebuying rule dictates that your monthly housing payments should not exceed 28% of your gross take-home pay.
There is no income cap for FAFSA. Even high-income students should apply to access federal loans and some merit aid. Aid eligibility is based on your Student Aid Index (SAI) and cost of attendance, not just income alone.
Using the formula above, for a $50,000 student loan with a 10-year repayment at 5% interest, you can expect to make monthly payments of around $530 per month. This calculation does not include the addition of an origination fee, which is calculated as a percentage of the loan amount.
Republicans' One Big Beautiful Bill Act expands who is subject to SNAP work requirements. That means that most adults up to age 64 will now have to fill out paperwork showing they are working, volunteering, or participating in a work training program for at least 80 hours a month.
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid.
No. Despite an earlier proposal to eliminate the in-school interest subsidy for undergraduate borrowers, there were no major changes to undergraduate student borrowing programs included in the bill.
The timeline for repaying $100,000 depends on your repayment plan, interest rate and monthly contribution. The average time to pay off 100k student loans ranges from 10 to 25 years.
Most buyers who earn $70,000 a year can qualify for houses priced between $210,000 and $290,000. But every borrower is unique. Your exact borrowing power depends on several key factors that lenders evaluate during the mortgage approval process.
Understanding Mortgage Affordability in Canada
For insured mortgages in Canada, CMHC recommends a maximum GDS ratio of 39%. For a $90,000 salary (which breaks down to $7,500 per month), this means your housing costs shouldn't exceed $2,925 per month.
100k Salary How Much House Can I Afford: Example
Assuming a 20% down payment and a 4% interest rate on a 30-year fixed-rate mortgage, you could potentially afford a home priced around $400,000.
As of 2025, you can give an adult child up to $19,000 in a year before you must file a gift tax return. If your adult child is married, you can also give up to $19,000 to their spouse.
Regarding federal income tax, you can hire and pay your child up to $15,750for the year (per child), and they will not be subject to federal income tax for 2025.
For 2021, you can forgive up to $15,000 per borrower ($30,000 if your spouse joins in the gift) without paying gift taxes or using any of your lifetime exemption. (These amounts are the same as in 2020.) But you will still have interest income in the year of forgiveness.
While state laws differ for inheritance taxes, an inheritance must exceed a certain threshold to be considered taxable. For federal estate taxes as of 2024, if the total estate is under $13.61 million for an individual or $27.22 million for a married couple, there's no need to worry about estate taxes.
How to lower taxable income and avoid a higher tax bracket
Do I Have to Worry About the Gift Tax If I Give My Son $75,000 Toward a Down Payment? Unless you have given away more than $13.99 million in your lifetime, a $75,000 gift will not trigger the federal gift tax. Using this for a down payment also does not affect the result.