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What we know

Graduate PLUS loans

• Graduate PLUS loans will be eliminated for new borrowers beginning on July 1, 2026; beginning on that date, new loans will not be available for new borrowers.
• There will be some continuing eligibility for existing Graduate PLUS borrowers as they complete their current programs.

New graduate unsubsidized direct loan limits (effective July 1, 2026)

• Professional programs (e.g., pharmacy, PsyD):
  • Annual limit: Increased to $50,000
  • Aggregate limit: Capped at $200,000 (includes loans borrowed as an undergraduate)
• Other graduate programs:
  • Annual limit: Remains $20,500
  • Aggregate limit: Capped at $100,000 (includes loans borrowed as an undergraduate)
• Existing Unsubsidized loan borrowers can access unsubsidized loans under the current limits until completing their current program or for three additional years, whichever is less.

Legacy provision

You may continue to borrow under the current rules (including Graduate PLUS Loans up to the Cost of Attendance) for up to three additional years if you meet BOTH of the following criteria:

1. You are enrolled in the same credentialed program in 2026–27 that you were enrolled in prior to July 1, 2026.
2. You borrowed a federal student loan (Subsidized, Unsubsidized, or Graduate PLUS) for that specific program before July 1, 2026.

If you change programs or start a new degree after July 1, 2026, you will be subject to the new limits.

Loan proration for part-time students

• The bill includes a provision to prorate loan amounts based on enrollment.
• This could mean that part-time graduate students (e.g., those enrolled less than full-time) would only be eligible for a portion of the annual loan limit.
• We are awaiting clarification from ED on how this will be applied to both graduate and undergraduate students.

What we know

Undergraduate Limits and Parent PLUS Loans

• There are no changes for undergraduate loans, although undergraduate loans will count towards the new lifetime limits.
• However, starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits for 3 more years or until the student’s program ends.

Legacy Provision for Parents of Currently Enrolled Students

Parents may continue to borrow under the current rules (up to the full Cost of Attendance) for up to three additional years if:

• The student they are borrowing for is enrolled in the same program they were attending prior to July 1, 2026.
• The parent borrowed a Parent PLUS loan for that student before July 1, 2026.

Here are steps you can take now:

1. Check your loan history: Log in to  to view your current total loan balance.
2. Understand your status: Determine if you will likely qualify for the Legacy Provision. If you are currently enrolled and have borrowed federal loans, you generally will.
3. Plan for the gap: If you anticipate your costs will exceed the new federal limits (especially for new graduate students or parents), begin researching private student loan options or preparing personal savings.

We are here to help you. Please reach out to us if you have any questions.

Public Service Loan Forgiveness (PSLF)

• No changes to PSLF provisions, although new limitations on eligibility have been proposed separately from the OBBB in other regulatory action.

New repayment plans

• For new loans disbursed after July 1, 2026, the bill eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
• Students who have borrowed loans before July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard plans for the new loan.
• RAP borrowers will not be locked into a 30-year plan. They can switch to a standard plan, which ranges from 10 to 25 years.
• Borrowers with no new loans made on or after July 1, 2026, can continue to be eligible to enroll in the current Standard, current Income Based (IBR), Graduated, and Extended repayment plans, and could also opt in to the new RAP. Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP.
•  More information on the new RAP is forthcoming.

For additional resources published by Federal Student Aid (FSA), please visit: