Graduate Loan Limits Are Changing: Here's How Much You Can Borrow After Grad PLUS Ends

Graduate student loan limits are changing in the 2026-27 school year, and the new rules could have a significant impact on how much you can borrow with federal student loans for grad school.

Grad PLUS loans have long allowed graduate students to borrow up to their school’s full cost of attendance after reaching the limits set on other types of federal student loans. But under policy changes taking effect July 1, 2026, grad PLUS loans will no longer be available to new borrowers.

At the same time, federal Direct Unsubsidized Loan limits are being restructured. The lifetime borrowing limit for graduate studies will be $100,000 (compared with a previous limit of $138,500 for undergraduate and graduate loans combined). Students pursuing law, medicine, and other professional degrees will have lifetime graduate borrowing caps of $200,000. 

These changes will significantly reduce the amount of federal funding many graduate students can access, especially those enrolled in higher-cost programs.

Understanding how graduate student loan limits work and how much you can still borrow is key to planning for graduate school.

Current private student loan rates

What are the federal loan limits for graduate students?

Graduate students are eligible for two types of federal student loans, each with different borrowing rules:

• Direct Unsubsidized Loans: Graduate students have previously been able to borrow up to $20,500 per academic year, with a lifetime cap of $138,500 (including undergraduate loans). As of July 1, 2026, the limit will change to $100,000 for graduate studies, excluding undergraduate loans. Students enrolled in law school, medical school, and other professional degree programs will have an increased annual limit of $50,000 and may borrow up to $200,000 to fund their graduate degrees.
• Graduate PLUS loans: Graduate PLUS loans don’t have a fixed annual borrowing limit; instead, you can borrow up to the cost of attendance. However, these loans are being phased out for new borrowers after July 1, 2026. Students who already took out a grad PLUS loan before the July deadline may be able to continue borrowing under the old rules for up to 3 years or until graduation if they remain in the same degree program.

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 co-signer.  
• 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?

There’s no one-size-fits-all answer regarding the amount of student debt you should take on. However, it’s best to only borrow the amount you need to cover essential expenses. You must repay every dollar you borrow with interest, so being intentional can make a big difference in your finances after graduation. 

To limit the amount you borrow, start by creating a realistic budget. Map out your total costs, including tuition, fees, books, and housing. Look for ways to reduce your need for loans by qualifying for scholarships or taking advantage of tuition assistance through your employer. 

Finally, make sure your monthly loan payments are manageable given your estimated starting salary. Careers with higher lifetime earnings may justify taking out more student loan debt. 

“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, which provides college planning and financial aid coaching. “When borrowing, 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 private student loans, 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.”