Washington, D.C. – The United States is set to implement major reforms to federal student lending, marking one of the most significant changes to graduate and professional education loans in over a decade. The new rules, effective July 1, 2026, will reshape borrowing limits, eligible programs, and access to federal loans for thousands of students.
Under the proposed framework, undergraduate borrowing limits remain unchanged, with dependent students able to borrow up to $7,500 per year, depending on their class level.
Key Changes for Graduate and Professional Students
- Graduate students: Up to $20,500 annually, with a total cap of $100,000.
- Professional students: Up to $50,000 annually, with a total cap of $200,000.
- Graduate PLUS loans, which previously allowed borrowing the full cost of attendance, will be discontinued.
The Department of Education has clarified that professional degrees are those that prepare students for licensure and practice in a profession, requiring skills and training beyond the bachelor’s level.
Fields Eligible for the $200,000 Cap
Eleven fields automatically qualify for the highest borrowing limit:
| Professional Field | Degree Titles |
|---|---|
| Pharmacy | Doctor of Pharmacy |
| Dentistry | Doctor of Dental Surgery / Doctor of Dental Medicine |
| Veterinary Medicine | Doctor of Veterinary Medicine |
| Chiropractic | Doctor of Chiropractic / Doctor of Chiropractic Medicine |
| Law | Bachelor of Laws / Juris Doctor |
| Medicine | Doctor of Medicine |
| Optometry | Doctor of Optometry |
| Osteopathic Medicine | Doctor of Osteopathic Medicine |
| Podiatry | Doctor of Podiatric Medicine and similar titles |
| Theology | Master of Divinity / Master of Hebrew Literature |
| Clinical Psychology | Doctor of Psychology / Doctor of Philosophy |
Additional fields (over 40) may qualify if they meet licensure, skill, and doctoral-level criteria. Individual universities will determine program eligibility, meaning classifications may vary across institutions.
Concerns from Professional Groups
Some organizations representing nursing and social work have voiced concerns that their fields, requiring extensive graduate training, may not qualify for the higher borrowing limits. Critics warn this could push students toward private loans and worsen workforce shortages.
Next Steps
The rule is not yet final. The Department of Education will publish the proposed regulation in the Federal Register, allowing the public to submit comments. Full implementation will unfold as universities adjust financial aid structures and students reassess the affordability of professional programs.
