Undergraduates 

Federal Parent PLUS Loan: 

      New Borrowers: 

• • Parents who borrow their first Parent PLUS Loan on or after July 1, 2026, will be considered NEW borrowers. These borrowers will be subject to updated Parent PLUS Loan borrowing limits.  

• • The combined annual borrowing limit for all parents will be $20,000 per year per dependent student, with a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).

     Current borrowers who borrowed a loan before July 1, 2026: 

• • Current Parent PLUS Loan borrowers are those who obtained a Parent PLUS Loan before July 1, 2026, for a dependent student’s current academic program, provided that the student remains in the same program. These borrowers may borrow loans up to the current limits for up to three (3) academic years, or the remainder of their dependent student’s expected time to degree, whichever is less. 

Graduate and Professional Students 

New loan borrowers as of July 1, 2026 

New graduate or professional borrowers who first borrow federal graduate-level loans on or after July 1, 2026, for a graduate or professional academic program will be considered NEW borrowers. These borrowers will be subject to the newly established loan limits and rules that apply to enrollment periods on or after that date. 

This includes students who: 

• • Begin a new graduate or professional program on or after July 1, 2026; 

• • Enroll in a graduate or professional program for the first time; or 

• • Have previously completed a graduate or professional program but are now starting a different program (e.g., finishing a master’s degree and then enrolling in law school). 

Current borrowers who borrowed a loan before July 1, 2026: 

CURRENT graduate or professional borrowers include those who borrowed federal graduate-level loans, including Direct Unsubsidized or Graduate PLUS loans, for a term that began before July 1, 2026, and remains enrolled in the same graduate or professional program at the same institution. Under the proposed regulations, eligible graduate and professional students may continue to borrow under the current loan rules for a limited period based on their “expected time to credential.” 

The proposed language indicates eligibility will be determined using an “expected time to completion,” as July 1, 2026, which would generally be the shorter of: 

• Up to three academic years. (The U.S. Department of Education has not yet clarified how these will be calculated.) 

• The remaining length of your program at the time eligibility is determined. 

Time already completed in your program is expected to count toward this limit. Students may not automatically receive three additional years of borrowing if they are already partway through their program. 

Details about how this timeframe will be calculated across different programs are still forthcoming. We will continue to publish updates as we receive them.  

Federal Direct Unsubsidized Loans for Graduate and Professional Students: 

• • Updated Annual and Lifetime Limits for Graduate Student Unsubsidized Loans: 

• • • Up to $20,500 per year 

• • • $100,000 lifetime borrowing limit
      (excluding undergraduate loans) 

• • Updated Annual and Lifetime Limits for Professional Student Unsubsidized Loans
    (for programs such as Dentistry, Medicine, Law, etc.) 

• • • Up to $50,000 per year 

• • • $200,000 lifetime borrowing limit
      (excluding undergraduate loans) 

Federal Graduate PLUS Loans: 

• • Federal Graduate PLUS Loans will be phased out beginning July 1, 2026. 

• • After this date, Graduate PLUS Loans will not be available for new borrowers. 

Updated Lifetime Limits for All Federal Loan Programs: 

• • $257,500 lifetime borrowing limit on all federal student loans (excluding any loan amounts for Federal Parent PLUS Loans, Graduate PLUS Loans, Consolidation Loans, Health Education Assistance Loans (HEAL) and Health Professions Student Loans). 

Professional Degree Program Classification 

Recent guidance indicates that the federal definition of “professional degree programs” is being updated and interpreted with a more specific framework than before. Early regulatory drafts appear to interpret “professional degrees” more narrowly to include: 

• • Pharmacy (PharmD), Dentistry (DDS or DMD), Veterinary Medicine (DVD), Chiropractic (D.C. or DCM), Law (LLB or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (DPM, D.P., or PodD), Theology (MDiv or MHL) and Clinical Psychology (PsyD or PhD). 

Changes to Loan Eligibility Based on Enrollment 

The new law requires schools to consider a student’s enrollment level when determining how much federal loan funding they can receive. This means that if you enroll less than full-time, your loan eligibility may be lower than in the past. These limits are designed to better align loan amounts with a student’s enrollment and educational costs. Final guidance with more details about the calculations are yet to be determined.

Understanding the Loan Options for New Graduate Borrowers 

To help you make sense of these changes, we’ve put together a short video explaining what’s changing under OBBBA and what it means for your graduate–level borrowing options. The video also highlights practical steps you can take now to plan for graduate school with clarity and confidence.  

What Does This mean? 

These changes mean it’s more important than ever to understand how much you’ve already borrowed because it could directly impact how much federal aid you will be eligible for. It also means that many students will have to rely on private financing to help cover remaining tuition and out-of-pocket costs.

Private financing programs are unsecured educational loans offered by banks, credit unions, and other lenders. These loans must be repaid with interest. Rates and fees depend on your creditworthiness and sometimes that of a co-borrower. Most lenders require a minimum credit score of around 640 for loan approval.

Some lenders also offer alternative loan programs for residents of certain states, so check our Loans page to see if you qualify.

Creditworthiness

Creditworthiness refers to your ability to repay a loan based on your credit history. Lenders look at your credit score, payment history, and overall financial behavior to decide whether or not to approve your loan and what interest rate to offer.

A strong credit profile can mean lower interest rates and fewer fees, saving you money over time. If your credit score is low or you have limited credit history, lenders may see you as a higher risk, which can lead to higher costs or even denial of your application.

Some tips to build and maintain good creditworthiness:

• Pay bills on time.
• Keep credit card balances low.
• Avoid opening too many accounts.
• Maintain older accounts.
• Check your credit report regularly.
• Build credit responsibly.
• Limit hard inquiries.

What You Should Do Right Now to Prepare

Now is the perfect time to check your credit, understand your credit rating and take steps to strengthen it if needed. You can start by obtaining a free credit report. Reviewing your credit report for errors, paying down existing debt, and making payments on time to improve your score before applying are all steps you can take now to prepare.

If your score isn’t quite there yet, don’t stress. Many students look to a credit-worthy co-signer to help secure a private loan.

Securing Private Financing: Co-borrowers

If you’re not considered credit-worthy, don’t worry. The most common and effective solution is applying with a co-borrower who has strong credit.

A co-signer or co-borrower is someone who agrees to share responsibility for the loan and helps reassure the lender that the loan will be repaid. This is usually a parent, guardian, or trusted relative who has strong credit and is supportive of your educational goals.

Undergraduate students usually need a co-borrower. Graduate students can apply for private financing on their own, but may still benefit from having a co-borrower, for example, to qualify for better interest rates. Remember: This is a serious commitment, and the co-borrower is legally responsible for repayment if you cannot pay.

Beyond loans, students are often surprised by how many scholarship opportunities exist. This is also great time to look for scholarships and/or assistantships offered by:

• Your academic department or professional school
• Private and public organizations
• Foundations
• Professional associations
• Employers
• Community groups
• Churches

These awards can be based on your qualifications, your academic background, your field of study, or professional experience.

Take time to explore scholarship search engines and professional associations in your intended field of study. Seeking scholarships and applying for them is a proactive process, but even modest awards can make a meaningful difference in reducing what you pay out of pocket.

Pursuing higher education is one of the most meaningful long-term investments you can make in yourself. And like any investment, it requires planning and sometimes, sacrifice. We strongly encourage you and your family to prepare and position your personal financial resources now.

Planning ahead, understanding your past borrowing, knowing your credit, exploring your private loan options and proactively seeking scholarships will set you up for a smooth transition to the new borrowing policies under OBBBA.

Evaluating your and your family’s existing expenses and cost of living, as well as finding creative ways to make temporary adjustments, can help minimize out-of-pocket expenses and minimize the amount you need to borrow to cover those educational expenses.

You and your family might also consider reallocating or repositioning personal investments, when appropriate, because ultimately, pursuing higher education is an investment that pays dividends in career advancement, earning potential and professional growth.

Yes. Under OBBBA, your loan eligibility is adjusted based on enrollment level. If you drop below fulltime enrollment, your available loan amount may be prorated, even if you remained eligible for the full amount in past years.  

Start by looking at when you first borrowed loans for your current program. If your federal loans for this program were disbursed before July 1, 2026, you likely fall under the “current borrower” category. If not, you will be regarded as a “new borrower,” even if you borrowed in the past for a different program.  

Switching to a new program (even at the same school) can reset your borrowing category. That means your loan limits and eligibility rules may shift to those of a “new borrower,” even if you previously qualified as a “current borrower” in your old program.  

Beginning a new graduate or professional program after July 1, 2026, will classify you as a “new borrower,” even if you already completed a previous graduate degree.  Most students will need to explore private financing options to finance costs beyond what the new loan limits will cover.  Review the “What Is Private Financing?”  below section to help prepare.  

Students may need to consider a mix of external scholarships, assistantships, employer sponsorships, or private loans to cover gaps once the Graduate PLUS program is phased out.  

Because OBBBA uses a narrower definition of “professional programs,” students in graduate fields not on the federal list may fall under the lower graduate borrowing caps.  

Current borrowers meeting eligibility requirements are protected only for a limited time. If your program extends beyond the allowable “legacy” window, you may be subject to the new annual and lifetime loan limits.  

Students expecting to start a new program after July 1, 2026, should evaluate how OBBBA’s new limits align with total program costs, timeline to completion, and anticipated financial resources. Early planning will help avoid surprises once the new borrowing rules take effect.