Grad PLUS Loans Ended July 1, 2026. Here Is What You Can Borrow Now
Financial aid offices are telling incoming grad students that Grad PLUS no longer exists for them, and many students think it must be a mistake. It is not. The program ended for new borrowers on July 1, 2026, and hard caps replaced it.
What changed
Grad PLUS used to let graduate students borrow up to their school's full cost of attendance. The One Big Beautiful Bill Act ended the program for anyone starting a new graduate program on or after July 1, 2026. In its place are fixed annual and lifetime limits on federal borrowing.
The new federal loan limits
| Borrower | Annual limit | Lifetime limit |
|---|---|---|
| Graduate students | $20,500 | $100,000 |
| Professional students (med, law, dental and similar) | $50,000 | $200,000 |
| All federal loans combined, including undergrad | n/a | $257,500 |
These are unsubsidized Direct Loans. The $257,500 overall ceiling covers your entire federal borrowing history except Parent PLUS loans taken by your parents for your education.
Who is grandfathered
If you received a Grad PLUS disbursement before July 1, 2026 and you stay continuously enrolled in the same program, you can keep borrowing under the old rules for up to 3 more academic years or until your program ends, whichever comes first.
The protection is fragile. Taking a gap and re-enrolling breaks it. Switching to a different program breaks it. Starting a second degree breaks it. If you left school years ago and are coming back, you are a new borrower under the new rules, no matter how much you borrowed before.
If your program costs more than the cap
A $60,000 a year program against a $20,500 federal limit leaves a real gap. The options, roughly in the order worth trying: funded positions like assistantships and fellowships, employer tuition assistance, institutional grants and scholarships, cheaper programs, and last, private student loans.
Private loans deserve the caution they get. There is no income driven repayment, no federal forgiveness, no PSLF, and very little flexibility if your income drops. A federal loan at the cap plus a smaller private gap loan is a very different life than a six figure private balance.
What this means for repayment later
Federal loans you take under the new caps still get the federal repayment system: the RAP plan, IBR, and PSLF if you work in public service. Private loans get none of that. This difference matters more than the interest rate when you compare offers.
Frequently asked questions
Are Grad PLUS loans really gone?
Yes, for anyone starting a new graduate program on or after July 1, 2026. Students already in a program who received a Grad PLUS disbursement before that date can keep borrowing for up to 3 more years or until their program ends.
How much can a grad student borrow in federal loans now?
$20,500 a year with a $100,000 lifetime cap for graduate study. Professional students such as med and law students can borrow $50,000 a year with a $200,000 cap. An overall lifetime ceiling of $257,500 applies across all federal loans.
I was in school years ago and I'm starting a new program. Am I grandfathered?
No. The grandfather rule requires a Grad PLUS disbursement before July 1, 2026 and continuous enrollment in the same program. Returning after a gap or starting a new program makes you a new borrower under the caps.
Do the new caps affect Parent PLUS loans?
Parent PLUS was also restricted by the same law and no longer covers unlimited cost of attendance. Parent PLUS balances are excluded from the borrower's own $257,500 ceiling. If your parents hold Parent PLUS loans, see how Parent PLUS interacts with the new repayment plans.