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Grad PLUS loans end for new borrowers on July 1, 2026, and graduate borrowing now has firm caps: $20,500 a year and $100,000 over a lifetime for most graduate students, and $50,000 a year and $200,000 over a lifetime for professional students like those in medicine or law. If you are already in a program with a Direct Loan disbursed before July 1, 2026, a limited exception may let you keep borrowing under the old rules for up to three more years.
Are Grad PLUS loans really going away?
Yes. The Grad PLUS program, which let graduate and professional students borrow up to the full cost of attendance, is eliminated for new borrowers starting July 1, 2026 under the 2025 budget law. In its place, graduate borrowing is capped, which changes how many students can fund school entirely with federal loans, according to reporting summarized by Saving for College.
Key Takeaways
- Grad PLUS ends for new borrowers on July 1, 2026.
- Graduate caps: $20,500 per year, $100,000 lifetime.
- Professional caps: $50,000 per year, $200,000 lifetime.
- Transition exception: students already borrowing before July 1, 2026 may continue under old rules for up to three years.
- The gap between cost and the new caps may need scholarships, assistantships, or private loans.
What are the new graduate borrowing limits?
The federal limits depend on whether you are a graduate or professional student. The annual Direct Unsubsidized Loan limit for graduate students stays at $20,500, but new lifetime caps now apply on top of it.
| Student type | Annual limit | Lifetime limit |
|---|---|---|
| Graduate students | $20,500 | $100,000 |
| Professional students (for example medicine, law) | $50,000 | $200,000 |
These caps cover federal borrowing only. Confirm the current figures and how they apply to your program at studentaid.gov before you plan your funding, since limits and exceptions can change.
Who is protected by the transition exception?
Students already in a graduate program who had a Federal Direct Loan disbursed before July 1, 2026 may be able to keep borrowing under the current rules, including Grad PLUS, for up to three additional academic years or until they finish their program, whichever comes first. This is meant to avoid pulling funding out from under students who are already mid-program. If this might apply to you, confirm your eligibility with your school’s financial aid office, since the details are specific.
How will grad students pay for school now?
Most students will combine the federal cap with other sources. The federal loan covers part of the cost; the rest typically comes from a mix of scholarships, fellowships, graduate assistantships, employer tuition help, savings, and in some cases private student loans. Schools with funded programs, especially PhDs, often cover tuition and pay a stipend, which can remove the need to borrow at all.
If you are planning ahead for school costs, building savings early helps reduce what you borrow. See our guide to 529 college savings plans for the tax-advantaged option, and if you are still in the application stage, note when aid opens in FAFSA 2027-28 opens October 1.
Should grad students use private loans to fill the gap?
Private loans can fill a funding gap, but treat them as a last layer after grants, assistantships, and federal loans, because they lack federal protections like income-driven repayment and forgiveness. Compare rates, check whether a co-signer is needed, and borrow only what you cannot cover another way. Federal options should come first precisely because of the repayment flexibility covered across our 2026 student loan changes hub.
How does this affect repayment later?
Loans you take after July 1, 2026 follow the new repayment landscape. New borrowers have RAP as their only income-driven repayment plan, so understanding RAP early helps you plan. See what the Repayment Assistance Plan is for how payments and forgiveness will work on the debt you take on now.
Frequently asked questions
Can current grad students still get Grad PLUS?
Possibly, under the transition exception. If you were already borrowing with a Direct Loan disbursed before July 1, 2026, you may continue under the old rules for up to three years. Confirm with your financial aid office.
What is the annual limit for grad students now?
$20,500 per year for graduate students, with a $100,000 lifetime cap. Professional students can borrow $50,000 per year up to a $200,000 lifetime cap.
Do these caps include undergraduate loans?
The graduate caps apply to graduate borrowing, but overall federal limits and how prior loans count can affect your room to borrow. Check your specific numbers at studentaid.gov.
Are private grad loans a good idea?
They can help close a gap, but they lack income-driven repayment and forgiveness. Use scholarships, assistantships, and federal loans first, and borrow private only for what remains.
Will RAP apply to my new grad loans?
Yes. For loans taken on or after July 1, 2026, RAP is the only income-driven repayment plan, so plan around its payment formula and 30-year forgiveness timeline.
Bottom line: Grad PLUS ends July 1, 2026, and graduate borrowing is now capped at $20,500 a year and $100,000 lifetime ($50,000 and $200,000 for professional students). Plan to combine federal loans with scholarships, assistantships, and savings, and treat private loans as a last resort.
For the full set of July 1 changes, start at our hub on student loan changes in 2026.
A quick note: this guide is here to help you understand your options, not to act as personal financial, legal, or tax advice. Borrowing limits and dates come from the U.S. Department of Education and can change over time, so it is always worth confirming the current figures at studentaid.gov or with your school’s financial aid office before you make a move.
