New Federal Rules Set Graduate Student Loan Caps at $100,000 and $200,000

The US Department of Education has finalized new federal student loan borrowing limits. These rules will take effect on July 1, 2026. They introduce stricter caps specifically for graduate and professional students.

This change aims to manage student debt by limiting how much students can borrow annually and in total. The regulations are part of a broader effort to reform federal lending practices.

Understanding the New Borrowing Limits

Graduate students will now face a strict borrowing structure. They can borrow a maximum of $20,500 per year. Their total debt cannot exceed $100,000 for their entire program.

Professional students in high-level degree programs receive a higher cap. They can borrow up to $50,000 annually. Their lifetime borrowing limit is set at $200,000. According to Reuters, this move will end the previous system where students could borrow the full cost of attendance through Graduate PLUS loans.

Which Degrees Qualify for the $200,000 Cap?

The Department of Education has defined which programs qualify as “professional.” Only these select fields are eligible for the increased $200,000 total loan limit. The list was determined through a collaborative rulemaking process.

Eleven fields automatically qualify for the higher cap. These include Medicine (Doctor of Medicine), Law (Juris Doctor), and Dentistry (Doctor of Dental Surgery). The full list also includes Veterinary Medicine, Pharmacy, and Clinical Psychology, among others. Dozens of other doctoral-level programs may also qualify if they meet specific licensure and degree requirements.

Broader Implications and Industry Reactions

The new caps have sparked debate within the education and healthcare sectors. Some professional associations argue the definition of a “professional” degree is too narrow. They fear it will exclude critical fields from accessing necessary funds.

For instance, the American Association of Colleges of Nursing has strongly objected. It states that excluding nursing from the professional category could worsen the nation’s nursing shortage. Similarly, social work organizations worry that higher costs will deter students from entering an already underfunded field.

The new graduate student loan caps represent a significant shift in federal education policy, directly impacting how future professionals finance their advanced degrees.

Thought you’d like to know

When do the new student loan caps start?

The new federal student loan borrowing limits are scheduled to take effect on July 1, 2026. This gives current and prospective students time to adjust their financial planning.

Can international students on F-1 visas get these loans?

No. Federal student loans are only available to U.S. citizens and eligible noncitizens. F-1 visa holders are not eligible for this federal assistance.

Is the list of qualifying professional degrees final?

Not exactly. The Department of Education has identified 11 fields that automatically qualify. However, at least 44 other fields could qualify if they meet specific doctoral and licensure requirements set by the agency.

How will this affect university tuition and scholarships?

Universities may need to adjust their financial strategies. They could change tuition fees, offer more institutional scholarships, or alter program capacities in response to the new borrowing limits.

Why was clinical psychology added to the list?

Clinical psychology was included after a collaborative rulemaking process. Stakeholders debated the classification and determined that it met the stringent requirements for a professional practice degree.

Trusted Sources

U.S. Department of Education, Reuters, NBC News, American Association of Colleges of Nursing, National Association of Social Workers.