Federal Legislation Updates

Federal legislation known as the One Big Beautiful Bill Act makes several major changes to federal student loans and some aspects of Pell Grant eligibility beginning with the 2026–2027 award year.

For most students, especially at the graduate level, the biggest changes are:

• The phase-out of Grad PLUS Loans for new borrowing.
• New annual and lifetime caps on how much graduate and professional students can borrow in Direct Unsubsidized Loans.
• New definitions and borrowing caps for professional programs (such as medicine, law, and certain clinical psychology doctorates).
• A shift to a new income-based repayment plan (RAP) and a redesigned Standard Repayment Plan over the next several years.  

July 1, 2026 is the key date because it marks the start of the new borrowing rules and the transition to the new repayment structure.

No. Aid for the 2025–2026 academic year will follow the current federal rules. The new loan limits and repayment structure begin with loans first disbursed on or after July 1, 2026, which generally corresponds to the 2026–2027 award year.  

If you are currently enrolled and receiving federal aid, you will continue under your existing aid offer for this academic year.

What is happening to Graduate PLUS Loans?

• For new borrowers: Grad PLUS Loans will not be available for students whose first Direct Loan for their program is made on or after July 1, 2026.
• For current borrowers: If you are enrolled in a graduate or professional program and have a Federal Direct Loan (Unsubsidized or Grad PLUS) for that program made before July 1, 2026, you may be able to continue using Grad PLUS (and current Unsubsidized limits) for up to three more academic years or until you complete your current program, whichever comes first.

For new borrowing starting July 1, 2026:

• Graduate (non-professional) students
  • Up to $20,500 per year in Direct Unsubsidized Loans
  • Up to $100,000 in total graduate-only federal borrowing
• Professional students
  • Up to $50,000 per year in Direct Unsubsidized Loans
  • Up to $200,000 in total professional-level federal borrowing
• Overall lifetime borrowing limit
  • Up to $257,500 in federal student loans across all levels of study (undergraduate + graduate + professional), not counting Parent PLUS borrowed on your behalf.

Under the recent federal student loan changes, the Department of Education uses a specific definition of “professional degree” to determine which programs qualify for the higher professional loan caps and which fall under the lower graduate loan caps.

For loan purposes, a professional degree program is defined in federal regulation and currently includes:

• Pharmacy (Pharm.D.)
• Dentistry (D.D.S. or D.M.D.)
• Veterinary Medicine (D.V.M.)
• Chiropractic (D.C. or D.C.M.)
• Law (LL.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.)
• Clinical Psychology (Psy.D. or Ph.D.)

All other eligible master’s and doctoral programs are treated as graduate (non-professional) programs for loan-limit purposes—even if they also lead to licensure or advanced clinical practice.

What this means for you:

• If your program is classified as professional, you may have access to the higher professional loan caps.
• If your program is classified as graduate (non-professional), you will be limited to the graduate loan caps.

The Department of Education has reached negotiated rulemaking consensus, but final regulations and any clarifying guidance have not yet been fully published. Some details, including how certain edge-case programs will be treated, could still change as rules are finalized in 2026.

We will continue to monitor federal updates and will revise our program-specific guidance as new information becomes available.

No. The graduate vs professional labels come from federal student loan rules and are used to decide how much you can borrow in federal loans—not how valuable or important your program is.

The Department of Education has been explicit that the new structure is designed to put different caps on borrowing, not to rank programs by quality, prestige, or workforce importance.  

That said, we recognize that students may understandably feel that a lower federal loan cap signals that their field is “less important” or “less professional.” This is especially true in fields like counseling, nursing, social work, education, and other helping professions that require advanced training and serve critical community needs—many of which are not in the federal professional category.  

When you think about the value of your degree, consider:

• Impact and mission: Many graduate programs that fall under the “graduate” cap (rather than the “professional” cap) prepare you for roles that are essential for mental health, community support, K–12 education, and public health.
• Career pathways: Your long-term impact is shaped by the work you do, the communities you serve, and the skills you develop—not only by the federal label placed on your program.
• Institutional commitment: Our decision to offer and support a program reflects its alignment with our mission and its importance to the communities we serve, regardless of whether the program is coded as graduate or professional under federal loan rules.

We will continue to advocate for our students and programs through appropriate channels.

You do not need to make rushed decisions, but it can be helpful to:

• Clarify your timeline for starting or completing your program, especially if you are considering beginning before July 1, 2026.
• Meet with Financial Aid to:
  • Review your current or projected borrowing under the new limits;
  • Understand whether you may benefit from “legacy” Grad PLUS protections; and
  • Discuss scholarship options and any employer or third-party funding.

If you are feeling uncertain or anxious about these changes, you are not alone. Financing graduate education is a significant decision, and it is appropriate to ask questions.

• For specific questions about your eligibility and loan options, contact our Financial Aid Office.
• For questions about budgeting, life planning, or financial stress, Student Support can help you explore broader resources, including housing, food access, transportation, and childcare where available.

We are committed to giving you timely information, realistic options, and a supportive environment as you plan your next steps.