Overview
Graduate borrowing will see some of the largest federal loan changes beginning July 1, 2026.
Elimination of Grad PLUS Loans
New borrowers will no longer be able to use Graduate PLUS Loans to cover remaining educational costs up to the full cost of attendance.
New Annual & Lifetime Borrowing Caps
- Standard graduate programs:
- $20,500 annual limit
- $100,000 lifetime limit
Continuing Borrower Protection
Students already enrolled may qualify for a temporary protection period.
The 3-Year Legacy Rule: If you borrowed a federal student loan (Direct and/or Grad PLUS) for a term that began before July 1, 2026, you are considered a "legacy borrower." You can continue to borrow under the old, higher limits (including Grad PLUS) for the remainder of your current program of study, or for three academic years, whichever is shorter.
To keep this legacy status, you must stay continuously enrolled in the same program. If you switch schools, change program of studies types, or take a leave of absence, you will lose your legacy status and switch into the new OBBBA limits.
