Graduate students can no longer take out new grad PLUS loans as of July 1, 2026. Previously, these loans allowed students to borrow up to their school’s total cost of attendance, minus any other aid received. The new rules also cap federal Direct Unsubsidized Loans at $100,000 for graduate students and $200,000 for students pursuing professional degrees, such as medicine and law.
These changes could leave students in higher-cost graduate programs with fewer federal borrowing options and a larger gap to cover when paying for school.
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What to watch out for: Private graduate student loans often let you borrow up to your school’s full cost of attendance, but they generally have higher interest rates and fewer borrower protections than federal loans. Before turning to private loans, consider maximizing your federal Direct Unsubsidized Loan eligibility, especially if you may need income-driven repayment or plan to pursue loan forgiveness.
What are the new federal loan limits for graduate students?
Students who begin graduate or professional degree programs on or after July 1, 2026, can no longer take out grad PLUS loans. Instead, new graduate and professional students are subject to annual and lifetime borrowing limits for federal Direct Unsubsidized Loans.
Students pursuing qualifying professional degrees, such as medicine or law, have higher borrowing limits than other graduate students.
Note: Aggregate amounts include all unsubsidized federal loans received for graduate and/or professional studies (Source: U.S. Department of Education)
Note
If you were enrolled in a graduate program and received a federal Direct Loan before July 1, 2026, you may still qualify for grad PLUS loans for up to three academic years or until graduation, whichever comes first.
What is considered a professional degree?
Students enrolled in qualifying professional degree programs have higher borrowing limits than students enrolled in other graduate degrees.
The following fields qualify under the Department of Education's professional degree rules:
- Clinical Psychology (Psy.D. or Ph.D.)
- Chiropractic (DC or DCM)
- Dentistry (D.D.S. or D.M.D.)
- Law (L.L.B. or J.D.)
- Medicine (M.D.)
- Optometry (O.D.)
- Osteopathic Medicine (D.O.)
- Pharmacy (Pharm.D.)
- Podiatry (D.P.M, D.P., or Pod.D.)
- Theology (M.Div. or M.H.L.)
- Veterinary Medicine (D.V.M.)
In the news: A federal court order issued June 29, 2026, temporarily expanded the list of programs eligible for higher professional student loan limits, including certain nursing, physical therapy, occupational therapy, physician assistant, and audiology programs. Check with your school's financial aid office to confirm whether your program qualifies, as eligibility may change while the case is ongoing.
How do private graduate student loan limits work?
Unlike federal graduate loan limits, most private student loans don’t have specific annual or lifetime limits. Instead, the amount you’re allowed to borrow is based on the following factors:
- Certified cost of attendance: Most private lenders cap your loan amount at your school’s certified cost of attendance, minus any other financial aid you received. The cost of attendance includes tuition, fees, room and board, books, and living expenses.
- Borrower creditworthiness: Lenders also consider your credit score, income, and debt-to-income (DTI) ratio when determining how much you can borrow. If you don't meet your lender's income and credit requirements, you can apply with a cosigner.
- Lender policies: Each lender sets its own rules for private graduate loans. For example, lifetime caps vary by lender.
How much should you borrow for graduate school?
The amount you should borrow for graduate school depends on your financial situation and expected earnings after graduation.
Start by creating a budget for tuition, fees, books, housing, and other necessary expenses. Then, look for ways to reduce how much you need to borrow, such as applying for scholarships or checking whether your employer offers tuition assistance.
Before borrowing, consider how much you expect to earn after graduation and whether you can afford the monthly payments on all your education debt, including any undergraduate loans. A higher-paying career may make taking on more debt manageable.
“My general rule is that a borrower's monthly payment on education debt should not exceed 10% of their monthly income,” says Tom O’Hare, a holistic college advisor at Get College Going. “Students should factor in interest rates, repayment terms, and their overall undergraduate and graduate educational debt."
What happens if you reach your graduate student loan limit?
If you hit your unsubsidized loan limits, there are other ways you can cover graduate school costs.
If you already have a grad PLUS loan and remain in the same degree program, you may be able to continue borrowing under the old rules for up to three years after the July 1, 2026, deadline. You can also apply for a private graduate student loan, which may allow you to borrow up to the remaining cost of attendance.
You can also try to reduce your borrowing costs. For instance, the program you choose can have a major impact on your total costs. "The choice between public and private colleges, and their associated costs, can also move the needle in the borrower's favor,” says O'Hare.
In-state public universities or online programs often cost significantly less than private or out-of-state schools. For many careers, accreditation and job placement matter more than the university you attended.
And many students don’t realize that financial aid offers may be negotiable. If you have a strong academic background and competing offers from different schools, it’s worth asking whether the school can increase your grants or tuition discounts.
How to increase your graduate borrowing eligibility
If federal loans don’t cover your full graduate school costs, there are steps you can take to increase your borrowing eligibility, especially with private lenders.
Credit score is a key factor in determining eligibility for private student loans, so improving your credit can help you qualify to borrow the money you need. Paying down debt can also strengthen your application and increase the amount you’re approved to borrow.
Applying with a cosigner who has strong credit and a steady income may also make it possible to qualify for a higher loan amount and more favorable terms than you’d qualify for on your own. Look for loans offering cosigner release if you want the option to remove your cosigner without having to refinance your private student loans.
Your academic program can also influence your borrowing limits. Some private lenders will loan more money to students enrolled in programs associated with stronger future earning potential.
“Shopping around matters,” says Jack Wang, a college financial aid advisor at Innovative Advisory Group. “It’s likely that lenders and even colleges themselves may offer vastly different requirements and rates as everyone will be guessing at how the private student loan marketplace plays out.”
FAQ
What is the maximum amount for federal graduate loans?
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