Grad PLUS is gone: your federal loan limit now.

What changed on July 1, 2026

Under 34 CFR 685.200(b)(2), "beginning on July 1, 2026, a graduate student or professional student may not borrow a Direct PLUS Loan." The replacement is a larger Direct Unsubsidized Loan with fixed caps (set by section 81001 of the Working Families Tax Cuts Act and carried into 34 CFR 685.203):

The Department's discussion in the final rule says the graduate and professional aggregate limits do not include undergraduate loans, but the lifetime $257,500 limit does count them. Graduate students are also no longer eligible for Direct Subsidized Loans, a change that took effect for periods beginning July 1, 2012.

Who counts as a professional student

The higher $50,000 and $200,000 limits are for students enrolled in a program leading to a professional degree as the final rule defines it. The regulation text lists these fields: Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (DC or DCM), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div. or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.), among the program characteristics the rule also requires (at least two years of post-baccalaureate coursework and generally professional licensure to practise). If a program awards both a graduate and a professional degree, the student is treated as professional only if more than 50 percent of the credit hours count toward the professional degree (34 CFR 685.203(l)). Your school classifies your program; ask the financial aid office which category it reported.

How the calculator works

It takes the lowest of four numbers: the annual cap (reduced for less than full-time enrollment, rounded to a whole percentage point, as 34 CFR 685.203(m)(1) requires), the cost of attendance minus other aid (34 CFR 685.203(j)(1)), the room left under the graduate or professional aggregate, and the room left under the $257,500 lifetime limit. It names which limit binds and shows the remaining gap.

Worked examples

• A full-time graduate student with a $45,000 cost of attendance and $10,000 of other aid has $35,000 of need. The annual cap of $20,500 binds, so the student can borrow $20,500 and must find $14,500 elsewhere.
• A law student in the fourth year of a program has borrowed $150,000 as a professional student and $40,000 as an undergraduate. With a $75,000 need, the annual cap of $50,000 and the $50,000 left under the $200,000 aggregate tie, and the lifetime room ($67,500) is larger, so the student can borrow $50,000.
• A professional student who already holds $230,000 in federal loans has only $27,500 left under the lifetime limit, so the lifetime cap binds at $27,500 even though the annual cap is $50,000.

Exceptions and school limits

• Students already enrolled. The Grad PLUS ban does not apply "during the period of the student's expected time to credential" if the student was enrolled in a program as of June 30, 2026 and a Direct Loan was made for that program before July 1, 2026. The same transition test shields these students from the $257,500 lifetime cap. It ends if the student withdraws or leaves the program.
• Institutional limits. A school may cap Direct Loan borrowing for a program of study, applied consistently to everyone in it (34 CFR 685.203(m)(2)).

What this page does not cover

It does not model Parent PLUS (see the Parent PLUS limit calculator), private loans, Perkins or state programs, nor interest: the rate on graduate Direct Unsubsidized Loans is on the 2026-27 interest rate page.

FAQ

Is Grad PLUS really eliminated?

For new borrowing, yes. 34 CFR 685.200(b)(2) says beginning on July 1, 2026 a graduate or professional student may not borrow a Direct PLUS Loan, except students covered by the transition exception for those enrolled in a program on June 30, 2026 with a Direct Loan already made for it.

What are the new graduate loan limits?

Graduate students can borrow $20,500 a year in Direct Unsubsidized Loans, up to $100,000 in total. Professional students can borrow $50,000 a year, up to $200,000 in total.

What is the $257,500 lifetime limit?

It is the lifetime maximum on federal student loans a student may borrow, counting undergraduate and graduate borrowing but not Parent PLUS loans made to the student as a parent of another student. Students covered by the June 30, 2026 transition exception are not subject to it during their expected time to credential.

Do undergraduate loans count toward the $100,000 or $200,000 limits?

The Department states in the final rule that the graduate and professional aggregate limits do not include undergraduate loans. They do count toward the $257,500 lifetime limit.

Which degrees are professional degrees?

The final rule lists Pharmacy, Dentistry, Veterinary Medicine, Chiropractic, Law, Medicine, Optometry, Osteopathic Medicine, Podiatry, Theology and Clinical Psychology, with additional program requirements. Your school determines how your program is classified.

Are limits lower for part-time students?

Yes. The annual limit is reduced in direct proportion to the degree the student is not enrolled full-time, rounded to the nearest whole percentage point.

Can my school set a lower limit than these?

Yes. Beginning July 1, 2026 a school may limit borrowing for a program of study, if it applies the limit consistently to all students in that program and notifies them.

Sources

Retrieved 2026-11-02. Each link was opened and checked against the claim next to it.

• 34 CFR 685.200, Borrower eligibility (eCFR, current to 2026-10-29): Paragraph (b)(2): no new Direct PLUS Loans for graduate and professional students from July 1, 2026, and the transition exception
• 34 CFR 685.203, Loan limits (eCFR, current to 2026-10-29): Paragraphs (j)(2)-(j)(4), (l) and (m): $257,500 lifetime limit, exception, professional student rule, less-than-full-time reduction, school limits
• Federal Register, Reimagining and Improving Student Education final regulations (May 1, 2026): The $20,500 and $50,000 annual limits, $100,000 and $200,000 aggregate limits, the list of professional degree fields, and the Department's statement that undergraduate loans are excluded from the aggregate