Big Changes Coming to Federal Student Loans Starting July 1, 2026
Starting July 1, 2026, important changes to federal student loans will go into effect. These new rules, part of the One Big Beautiful Bill Act, will affect graduate students, professional students, and parents who borrow money to pay for college.
Here's what you need to know.
Graduate PLUS Loans Are Going Away for New Borrowers
The biggest change is that Graduate PLUS loans will no longer be available for new graduate and professional students starting on July 1, 2026.
This means if you're beginning a graduate or professional program in the 2026-27 school year and haven't already received a federal loan payment before July 1, 2026, you won't be able to use Graduate PLUS loans.
Some Students Can Still Use Graduate PLUS Loans
If you're a returning student who received a federal loan payment before July 1, 2026, and you stay in the same program at the same school, you may still be able to use Graduate PLUS loans. This exception lasts for up to three more school years or until you finish your program—whichever comes first.
However, you will lose this protection if you:
- Switch to a different program
- Transfer to another school
- Drop out and start a new program later
- Move from undergraduate to graduate study in 2026-27
New Borrowing Limits
Without access to Graduate PLUS loans, students will face new borrowing caps.
For Graduate Students (Master's and Ph.D. Programs):
- Per year: Up to $20,500
- Total for graduate school: Up to $100,000
For Professional Students (Medicine, Law, Dentistry, Pharmacy, etc.):
- Per year: Up to $50,000
- Total for professional school: Up to $200,000
Students who pursue both graduate and professional degrees can borrow a combined maximum of $200,000 for both.
Parent PLUS Loans Also Have New Limits
Parents who borrow to help pay for their child's education will also see changes. New Parent PLUS borrowers will now have limits:
- Per year: Up to $20,000 per child
- Total: Up to $65,000 per child
What This Means for You
If you or your family planned to borrow money for graduate school or to help pay for a child's education, you may need to rethink your strategy. The borrowing options that existed before July 1, 2026, may no longer be available or may work differently.
The federal government is still finalizing some details, including rules for students who attend school part-time.
The bottom line: If these changes affect you, now is the time to review your financial plans and explore your options.
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