Grad PLUS Eliminated: New Loan Limits and Options
Guides · Updated October 17, 2026 · 3 min read
Educational information only. Not financial, tax, or legal advice. We are not the U.S. Department of Education or a loan servicer. Help with federal loans is free at StudentAid.gov. Never pay a company to apply for a repayment plan. Last checked against the listed official sources: October 17, 2026. Examples use made-up numbers.
Short answer: For loans made on or after July 1, 2026, the Education Department's final rule caps graduate and professional borrowing and stops new Grad PLUS loans, except for borrowers who qualify for an interim exception.
The new limits (loans made on or after July 1, 2026)
| Borrower | Annual | Aggregate |
|---|---|---|
| Graduate student | $20,500 | $100,000 |
| Professional student | $50,000 | $200,000 |
| Lifetime limit for borrowers with new loans (Parent PLUS excluded) | Not an annual cap | $257,500 |
Grad PLUS loans you have received count toward the lifetime limit unless you qualify for the interim exception. Institutions may also set lower program limits, and part-time students have reduced eligibility through a schedule-of-reductions formula (per the fact sheet).
Who counts as professional?
The rule lists 11 core fields: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. Other programs may qualify if they meet a four-part test (doctoral level, at least six academic years of study including two post-baccalaureate, licensure generally required, and a related CIP code). Ask your school's financial aid office which category your program falls into.
The interim exception
Per the fact sheet: if you were enrolled in a program before July 1, 2026, and had already received a loan for that program, you may keep borrowing under the previous annual, aggregate, and lifetime limits for the lesser of three years or your expected time to credential, provided you stay continuously enrolled. If you stop enrolling or withdraw, the new limits apply. The Department cannot make new Grad PLUS loans to borrowers who do not qualify for the exception.
Options to explore (not recommendations)
- Your school's financial aid office: a cost-of-attendance review, institutional aid, and the school's own loan limits.
- FAFSA for federal aid, including grants. FAFSA for the next award year is generally relevant for fall 2027 enrollment. Confirm opening dates on StudentAid.gov.
- Private education loans are a separate market with different terms. They lack federal protections. See refinance vs stay federal for what those protections include. We do not rate lenders on this page.
- Employer tuition programs or assistantships, where they exist.
Repayment for these loans
Direct PLUS loans for graduate or professional students are eligible for IBR, ICR, PAYE, and RAP per the Federal Student Aid chart, subject to disbursement dates. See RAP vs IBR vs Tiered Standard.
FAQ
Does the $257,500 limit include Parent PLUS?
No. Parent PLUS loans for dependents are excluded from the student's lifetime limit.
Am I covered by the exception?
Your school's aid office determines eligibility. The rule's details matter, including program length and enrollment.
What we could not verify
These points were not settled in the sources we read. Treat them as open.
- How a specific school applies "expected time to credential" and continuous enrollment.
- Final dollar results for your program. The fact sheet is a summary of the rule, not the full text.
- Any change after October 17, 2026.
Sources
- U.S. Department of Education, RISE final rule fact sheet. Read October 17, 2026.
- Federal Student Aid, SAVE Plan Borrowers: FAQs About Choosing a Different Repayment Plan (published October 2026). Read October 17, 2026.
- Federal Register, Reimagining and Improving Student Education final regulations (May 1, 2026). Cited from the project brief. Not read in full.