Federal Loan Changes

What is Changing on July 1, 2026

Starting July 1, 2026, federal law eliminates the Graduate PLUS loan for new Graduate and Professional student borrowers and sets new annual and lifetime limits on Unsubsidized Direct Loans. Some returning students may still qualify under a limited legacy provision if specific requirements are met.

Additional changes include new annual and aggregate Parent PLUS loan limits for new Parent PLUS borrowers and future loan proration rules that are still being defined.

Which Situation Fits You

Review the section below that best matches your situation.

New Graduate or Professional Student Starting in 2026-27

If you are starting a Graduate or Professional program in 2026–27 and have not received a federal Direct Loan disbursement before July 1, 2026, the Graduate PLUS loan will not be available to you. You will be limited to the new Unsubsidized Direct Loan annual and aggregate limits.

Returning Student in the Same Program

If you are continuing in the same credentialed academic program and received any type of federal Direct Loan disbursement before July 1, 2026, you may qualify for the Graduate PLUS legacy provision, which allows continued borrowing under current rules for a limited time.
Eligibility depends on remaining enrolled in the same program at the same institution.

Students Changing Programs or Institutions

If you change academic programs, transfer to another institution, or withdraw and later enroll in a different program, you will not qualify for the legacy provision and will be subject to the new loan limits and program restrictions.

Graduate Plus Loan Changes

The Graduate PLUS loan program will no longer be available to new Graduate and Professional student borrowers beginning July 1, 2026.

Graduate PLUS Legacy Provision

Some returning students may qualify for a legacy provision that allows continued borrowing through the Graduate PLUS loan program if they:

• Received a federal Direct Loan disbursement before July 1, 2026, and
• Remain enrolled in the same credentialed program at the same institution.

Eligible students may borrow Graduate PLUS loans for up to three additional academic years or the remainder of their expected time to credential, whichever is less.

Unsubsidized Direct Loan Limits Beginning July 1, 2026

New annual and aggregate Unsubsidized Direct Loan limits apply to Graduate and Professional students who do not qualify for the legacy provision.

Graduate Students

Master's and Ph.D. programs

Limit	Amount
Annual Limit	$20,500
Aggregate Limit	$100,000

Professional Students

Medicine, Dentistry, Law, Pharmacy, Psy.D., Ph.D., and other defined professional programs

Limit	Amount
Annual Limit	$50,000
Aggregate Limit	$200,000

Please note: these limits do not include amounts borrowed as an undergraduate. Students who are both graduate and professional students at different points in their education may borrow a combined maximum of $200,000 for graduate and professional study.

How Professional and Graduate Programs are Defined

As of November 6, 2025, a professional student is defined as a student enrolled in a program that awards a professional degree under federal regulations.

Examples include, but are not limited to:

• Pharmacy (Phram.D.)
• Dentistry (D.D.S. or D.M.D.)
• Veterinary Medicine (D.V.M.)
• Chiropractic (D.C. or D.C.M)
• Law (L.L.B. or J.D.)
• Medicine (M.D.)
• Optometry (O.D.)
• Osteopathic Medicine (D.O)
• Podiatry (D.P.M., D.P., or Pod.D.)
• Clinical Psychology (Psy.D. or Ph.D.)
• Theology (M.Div. or M.H.L)

Any student not enrolled in one of these programs is considered a Graduate Student.
The Department of Education has proposed additional criteria to define professional degrees. Final definitions are not yet official and may change.

Implementation Timeline

July 4, 2025
The One Big Beautiful Bill Act was signed into law.

November 6, 2025
The Department of Education's negotiated rulemaking committee, known as the Reimagining and Improving Student Education committee, concluded meetings and proposed definitions related to Graduate and Professional students and Graduate PLUS legacy eligibility.

January 2026
The Department of Education released a Federal Register as part of the Notice of Proposed Rulemaking process outlining how the law will be implemented.

March 2026
Public comment may be submitted by March 2, 2026, before the final rules are issued.

May 1, 2026
A draft of the final rules is to be made available.

June 1, 2026
Final Rules are to be made available.

July 1, 2026
Federal loan changes take effect.

What is Still Uncertain

Federal regualtions implementing the OBBBA have not yet been finalized. As a result:

• Definitions and requirements may change.
• Loan proration rules are not yet defined.

This page will be updated as federal guidance becomes final.

Parent Plus Loan Changes

Effective July 1, 2026, new annual and aggregate limits will apply to Parent PLUS Loans.*

Limit	Amount
Annual Limit	$20,000 for dependent student
Aggregate Limit	$65,000 for dependent student

*If a parent previously borrowed a Parent PLUS Loan, or the student previously borrowed a federal Direct Subsidized or Unsubsidized Loan before July 1, 2026, the previous Parent PLUS loan limits will continue to apply for that same student only. The new limits will apply to any other dependent student in the family who first borrows on or after July 1, 2026.