What’s Changing with Grad PLUS Loans in 2026?
BIG Ideas:
- As a result of the One Big Beautiful Bill Act, July 1, 2026, will mark the end of the Grad PLUS loan for new graduate and professional student borrowers.
- In addition to the Grad PLUS loan program ending, new graduate and professional students will face federal annual and aggregate borrowing caps.
- Private student loans, scholarships, and grants may help grad students bridge the gap where federal aid leaves off.
Going to grad school? That’s a very big deal. It can help you advance your skills, career, and, of course, your earning potential. Unfortunately, there’s one aspect of attending grad school that’s also a big deal: paying for it.
With the high cost of professional and graduate degrees, many students rely on financial aid and federal loans to help make the cost manageable. But with the passage of the One Big Beautiful Bill Act (OBBBA), signed into law by President Trump on July 4, 2025, getting that help may be more challenging for new borrowers.
In addition to tax changes, OBBBA has significantly impacted education, specifically federal student aid. So, whether you’re currently enrolled in a graduate or professional degree program – or are planning to enroll – there are some important changes you need to know about.
The biggest change is that, beginning July 1, 2026, Grad PLUS loans will no longer be available to most new graduate and professional student borrowers. In addition, OBBBA created new annual and aggregate federal borrowing caps for these students.
To help you make sense of Grad PLUS loan changes and the new borrowing limits, let’s review some important questions and answers:
What is a Grad PLUS Loan?
A Graduate PLUS loan is a federal Direct PLUS Loan available to eligible graduate and professional students through schools that participate in the federal Direct Loan Program.
Essentially, the Graduate PLUS loan program helps eligible students cover education costs up to a school’s cost of attendance, minus other financial aid received.
- Professional students include students pursuing law, medical, dental, and other eligible professional degrees.
- Graduate students include students pursuing master’s, doctoral, and graduate certificate programs.
Like other federal student loans, Grad PLUS loans offer borrower protections, including deferment, forbearance, and access to certain federal repayment options for eligible borrowers.
These loans may also qualify for Public Service Loan Forgiveness if the borrower meets the eligibility requirements.
When is the Grad PLUS Loan Discontinued?
The Graduate PLUS loan discontinued date is July 1, 2026, for new borrowers.
Is This the Only Change Impacting Graduate and Professional Students Under OBBBA?
The passage of OBBBA has created another important change that will impact students looking to borrow for graduate and professional degrees. Beginning on July 1, 2026, new federal annual and aggregate loan caps will go into effect. According to a press release from the Department of Education, these limits are as follows:
New graduate students: $20,500 per year / $100,000 total
New professional students: $50,000 per year / $200,000 total
Why Are These Changes Going into Effect?
Before OBBBA, graduate and professional students could borrow up to the full cost of attendance with federal student loans, including Grad PLUS loans, essentially allowing them to borrow as much federal aid as they needed.
The end of the Grad PLUS loan program, along with the new borrowing limits, was conceived to limit overborrowing and pressure colleges to control the costs of these degrees.
What Happens to Existing Grad PLUS Loans?
If you borrowed a Grad PLUS loan before July 1, 2026, your existing loan balance will not be canceled or become due as a result of the OBBBA changes. You will still be expected to repay your loan under the terms outlined in your repayment plan.
Can Current Students Continue Borrowing Under the Old Rules?
If you were already enrolled in your graduate or professional program before July 1, 2026, and you previously borrowed using a Grad PLUS loan, you may be able to continue borrowing under prior rules for the expected length of your program. Please check with the school offering your program to confirm.
How Does OBBBA Impact Graduate and Professional Students On or After July 1, 2026?
If you’re looking to finance graduate or professional school on or after July 1, 2026, you may no longer be able to use a Grad PLUS loan to cover expenses not covered by federal aid.
In addition, the amount you can borrow in federal student loans will be subject to new annual and aggregate limits:
- Graduate students: $20,500 per year / $100,000 total
- Professional students: $50,000 per year / $200,000 total
How Can I Determine the Borrowing Limit for My Degree?
The amount professional students can borrow depends on the type of professional program.
Programs considered professional may include:
- Pharmacy
- Dentistry
- Veterinary Medicine
- Law
- Medicine
- Optometry
- Osteopathic Medicine
- Podiatry
- Theology
- Clinical Psychology
Students enrolled in these professional degree programs can borrow up to the maximum of $50,000 per year / $200,000 total.
For graduate programs that are not classified as professional degree programs, the lower federal borrowing limits apply: $20,500 per year / $100,000 total.
You should check with your school to see how your program is classified.
Can Students Use Other Loans to Help Cover the Cost of Graduate Programs?
These new borrowing limits apply to federal student loans. If you need help with remaining costs, you could get a private graduate student loan from a bank, credit union, or non-profit lender, like Brazos.
Because interest rates, fees, repayment terms, and borrower protections can vary significantly, it’s important to compare lenders carefully.
What Other Ways Can Help You Pay for Grad School?
One of the best ways to afford grad school is to lower the cost of college by choosing a public versus private institution, commuting, or working and attending grad school part-time. You can also apply for scholarships and grants, which represent free money that can drive down college costs and the amount you must borrow.
Brazos Can Help Make Grad School Affordable
For more than 40 years, Brazos Higher Education has helped students finance the cost of undergraduate and advanced degrees. As a Texas nonprofit, we offer competitive rates on our graduate student loans that can help you get the degree and brighter future you want. Contact us today.
