For loans made on or after July 1, 2026, Grad PLUS is closed to new borrowers. Graduate students can borrow up to $20,500 a year ($100,000 total); professional students (medicine, law, etc.) up to $50,000 a year ($200,000 total). Parent PLUS is capped at $20,000 a year per student and $65,000 total, and there is a $257,500 lifetime limit on federal student loans. Undergraduate limits did not change.
Federal student loan limits: before and after July 1, 2026
| Borrower | Before July 2026 | From July 1, 2026 |
|---|---|---|
| Dependent undergraduate | $31,000 aggregate | Unchanged (prorated if less than full time) |
| Independent undergraduate | $57,500 aggregate | Unchanged (prorated if less than full time) |
| Graduate student | $20,500/yr unsubsidized + Grad PLUS up to cost of attendance | $20,500/yr, $100,000 total; no Grad PLUS |
| Professional student | Same as graduate (Grad PLUS unlimited to cost) | $50,000/yr, $200,000 total |
| Parent PLUS | Up to cost of attendance | $20,000/yr per student, $65,000 total |
| Lifetime (all federal student loans) | No overall cap beyond the above | $257,500 |
Students already enrolled in a program before July 1, 2026 may qualify for an exception that lets them keep borrowing under the old rules for a limited period while they finish that program; check with your school’s financial aid office.
What a maxed-out balance costs per month
Payments at the new caps, using 2026-27 rates. New loans can only use the Tiered Standard plan or RAP (Parent PLUS: Tiered Standard only, since Parent PLUS can’t use RAP).
| Balance | Rate | 10-yr equivalent | Tiered Standard | RAP at $70k AGI |
|---|---|---|---|---|
| $31,000 dependent undergrad | 6.52% | $352 | $270 (15 yr) | $350 |
| $65,000 Parent PLUS | 9.07% | $826 | $588 (20 yr) | Not eligible |
| $100,000 graduate | 8.07% | $1,217 | $776 (25 yr) | $350 |
| $200,000 professional | 8.07% | $2,434 | $1,553 (25 yr) | $350 |
Annual vs lifetime caps: worked examples
Both limits apply: you can’t exceed the annual cap in any year or the aggregate cap in total. Some common paths under the new rules:
| Program | Federal borrowing | Monthly (Tiered) | RAP at $70k AGI |
|---|---|---|---|
| 2-year master’s | 2 × $20,500 = $41,000 | $393 (15 yr) | $350 |
| 3-year law degree (professional) | 3 × $50,000 = $150,000 | $1,165 (25 yr) | $350 |
| 4-year medical degree | 4 × $50,000 = $200,000 | $1,553 (25 yr) | $350 |
| PhD (5 years, graduate cap) | capped at $100,000 | $776 (25 yr) | $350 |
A four-year medical program at the professional annual cap hits the $200,000 aggregate exactly, so any undergraduate debt or earlier graduate loans count against the separate $257,500 lifetime limit. Programs costing more than the caps will need savings, school aid or private loans to close the gap.
How students are filling the gap
- Private student loans — credit-based rates, usually with a cosigner; no RAP, PSLF or federal forgiveness.
- Institutional aid and payment plans — some schools are expanding grants for graduate programs that cost more than the cap.
- Cheaper programs — the cap makes total cost of attendance a bigger factor in choosing a school.
- Employer tuition assistance — check your benefits before you borrow.
Will the payment fit your future salary?Check the take-home pay for the salary you expect after graduation.
Frequently asked questions
How much can graduate students borrow in 2026?
From July 1, 2026, new graduate borrowers can take up to $20,500 a year and $100,000 in total in federal Direct Unsubsidized Loans.
Is Grad PLUS eliminated?
Grad PLUS is closed to new borrowers for loans made on or after July 1, 2026, with a limited exception for students already enrolled in a program.
What is the new Parent PLUS limit?
$20,000 per year per dependent student and $65,000 in total per student.
Did undergraduate loan limits change?
No. Dependent undergraduates can still borrow up to $31,000 in total and independent undergraduates $57,500, though limits are now prorated for less-than-full-time enrollment.
What is the lifetime federal student loan limit?
$257,500 across all federal student loans.
Related student loan guides
- 2026-27 interest rates6.52% / 8.07% / 9.07%
- Tiered Standard plan10, 15, 20 or 25 years by balance
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- Refinance student loans?Savings vs federal protections
- How much debt is too much?Income needed, 10% rule
- PSLF basics 2026120 payments, tax-free forgiveness
- Monthly payment on $30,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $100,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $200,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- California DFPI, “Student loan borrowers: important student loan changes effective July 1” — OBBBA loan limits; university financial aid OBBBA FAQs.
- FSA Dear Colleague Letter GEN-25-04, “Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act” (July 18, 2025).
- U.S. Department of Education, FSA Electronic Announcement GENERAL-26-33, “Interest Rates for Federal Direct Loans First Disbursed Between July 1, 2026 and June 30, 2027” (June 4, 2026).
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.