The gap
$33,500 this year not covered by federal loans
Savings, work, school payment plans or private loans would have to cover it. Private loans don't qualify for RAP or PSLF.
2026 federal student loan limits
From July 1, 2026, Grad PLUS is gone for new borrowers and graduate, professional and parent borrowing is capped. See what federal loans cover and the gap.
Federal loans available this year
$20,500
Direct Unsubsidized (graduate): up to $20,500 a year and $100,000 in total, never more than cost minus other aid ($54,000).
Limits that also apply
- Lifetime maximum, all federal student loans$257,500
- Grad PLUS for new borrowersEnded July 1, 2026
- Less than full timeProrated
Students enrolled on June 30, 2026 who had a Direct Loan for that program keep the old limits for up to three more academic years. Who keeps the old limits
The new limits at a glance
The 2025 budget law (Public Law 119-21, section 81001) rewrote federal borrowing limits for periods of enrollment beginning on or after July 1, 2026:
| Borrower | Yearly limit | Total limit |
|---|---|---|
| Graduate student (Direct Unsubsidized) | $20,500 | $100,000 for graduate study |
| Professional student (Direct Unsubsidized) | $50,000 | $200,000 for professional study |
| Graduate or professional student (Grad PLUS) | No new loans | Ended July 1, 2026 |
| Parent of a dependent undergraduate (Parent PLUS) | $20,000 per student | $65,000 per student |
| Every student, all federal student loans | – | $257,500 lifetime |
Before these changes, Grad PLUS and Parent PLUS loans went up to the cost of attendance minus other aid, with no fixed cap. The calculator above shows what federal loans can cover this year and what they leave uncovered.
Grad PLUS is gone for new borrowers
Under 34 CFR 685.200, graduate and professional students may not borrow a Direct PLUS loan beginning July 1, 2026. For many graduate programs the unsubsidized limit is now the only federal loan available. Where the cost of attendance runs well above $20,500 a year, as it does in many programs, the rest has to come from savings, work, school aid, payment plans or private loans.
Private loans are a different product. They don't qualify for RAP, IBR, PSLF or any federal forgiveness, their rates depend on credit, and the terms vary by lender. Borrow federal first, and compare private offers carefully if you need one.
Who keeps the old limits
The law protects students who were already enrolled. A student enrolled in a program of study on June 30, 2026, with a Direct Loan made for that program before July 1, 2026, keeps the old limits, including Grad PLUS, during their expected time to credential, up to three academic years. The same protection applies to parents borrowing for such a student. It ends if the student withdraws or leaves the program; changing majors within the same degree does not end it.
Professional versus graduate
The higher $50,000 and $200,000 limits apply to professional students: those in programs the Department treats as professional degrees, such as medicine, dentistry, pharmacy and law. A program that awards both a graduate and a professional degree counts as professional if more than half its credit hours count toward the professional degree. Programs outside the definition get the graduate limits. Your financial aid office can tell you which applies.
The lifetime maximum and other changes
- $257,500 lifetime. The total a student may ever borrow in federal student loans, not counting Parent PLUS loans they took out as a parent. It is counted without regard to anything repaid or forgiven.
- Part-time study. From the 2026-27 year, the yearly amount is prorated for less-than-full-time enrollment.
- School limits. Schools may set lower limits for a program, as long as they apply them to every student in it.
- Deferment and forbearance. For loans made on or after July 1, 2027, the economic hardship and unemployment deferments end, and discretionary forbearance is limited to 9 months in any 24.
What this means for repayment
Anyone who takes out a new Direct Loan on or after July 1, 2026 can repay all their loans only on RAP or the Tiered Standard plan. IBR and the older standard plans close to them. Before borrowing again, check what a new loan does to your options:
- Your payment under RAP: RAP calculator
- Every plan side by side: RAP vs IBR comparison
- For parents: Parent PLUS loans under the 2026 rules
Common questions
Is Grad PLUS gone?
For new borrowers, yes. Beginning July 1, 2026, graduate and professional students may not borrow a Direct PLUS loan, except students enrolled in a program on June 30, 2026 who had a Direct Loan for it, during their expected time to credential.
How much can a graduate student borrow now?
Up to $20,500 a year in Direct Unsubsidized loans and $100,000 in total for graduate study. Professional students can borrow $50,000 a year and $200,000 in total. Everyone faces a lifetime cap of $257,500 across federal student loans.
Who counts as a professional student?
A student in a professional degree program as the Department defines it, such as medicine, dentistry, pharmacy or law. A program that awards both a graduate and a professional degree counts as professional if more than half its credit hours count toward the professional degree.
What are the new Parent PLUS limits?
$20,000 a year and $65,000 in total per dependent undergraduate student, counted without regard to repayment or forgiveness.
Are part-time students affected?
Yes. From the 2026-27 academic year, a student enrolled less than full time has the yearly loan amount reduced in proportion to their enrollment.