US graduate student loan caps 2026: The Trump administration has revealed new restrictions on federal student loans that are set to commence on July 1, 2026. Depending on their year of study, undergraduate students will continue to be subject to the current yearly cap of $7,500 for dependent students.
Graduate and professional students, however, would face stricter borrowing restrictions. The regulation has not yet been approved and could possibly be changed before it is put into effect.
Here's what graduate and professional students need to know
According to NBC, graduate students will be able to borrow up to $20,500 per year under the new restrictions, with a total limitation of $100,000 for the duration of their study. The annual borrowing cap for professional students studying disciplines requiring advanced degrees is $50,000, with a total maximum of $200,000 for their program. Students will no longer be able to borrow up to the entire cost of tuition through the Graduate PLUS loans.
{{/usCountry}}According to NBC, graduate students will be able to borrow up to $20,500 per year under the new restrictions, with a total limitation of $100,000 for the duration of their study. The annual borrowing cap for professional students studying disciplines requiring advanced degrees is $50,000, with a total maximum of $200,000 for their program. Students will no longer be able to borrow up to the entire cost of tuition through the Graduate PLUS loans.
{{/usCountry}}The US Department of Education says that such a degree “signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree”.
Which 11 fields qualify for loans?
The department has identified 11 fields that automatically qualify for the increased borrowing limit of $200,000:
Chiropractic (Doctor of Chiropractic or Doctor of Chiropractic Medicine)
Law (Bachelor of Laws or Juris Doctor)
Medicine (Doctor of Medicine)
Pharmacy (Doctor of Pharmacy)
Osteopathic medicine (Doctor of Osteopathic Medicine)
Podiatry (Doctor of Podiatric Medicine or equivalent titles)
Theology (Master of Divinity or Master of Hebrew Literature)
Dentistry (Doctor of Dental Surgery or Doctor of Dental Medicine)
Veterinary medicine (Doctor of Veterinary Medicine)
Optometry (Doctor of Optometry)
Clinical psychology (Doctor of Psychology or Doctor of Philosophy)
Clinical psychology was included after a collaborative rulemaking process where stakeholders debated the classification's application and identified the fields that met the requirements for professional practice.
In addition, at least 44 other fields could qualify if they meet certain requirements, as per the agency. This may involve the requirement of a doctoral-level degree and professional licensure. It is the responsibility of universities to clarify whether their programs fulfill these professional degree requirements
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Are holders of F-1 visas eligible?
Federal school loans are not available to holders on F-1 visas. Only US citizens and qualified noncitizens are subject to these regulations.
However, the modifications may have an indirect impact on F-1 students, as universities might alter tuition fees, scholarship offerings, and the capacities of graduate programs in reaction to the newly established borrowing limits.
DoE reacts to growing criticism
Meanwhile, several professional associations have already raised objection to the list, claiming that the department's definition leaves out sectors that satisfy strict requirements and meet crucial labor needs.
The American Association of Colleges of Nursing stated that nursing, which is the largest health profession in the country and necessitates significant post-baccalaureate training, does not meet the criteria set forth in the proposed regulations. In a statement issued on 7 November, the organization cautioned that the exclusion of nursing could exacerbate current shortages by compelling students to seek higher-cost private loans.
Similarly, the Florida chapter of the National Association of Social Workers expressed a related concern on 20 November, stating that the removal of Master of Social Work and Doctorate of Social Work programs from the professional category could diminish affordable training opportunities in a sector that is already dependent on graduate education.
Addressing the criticism, the Department of Education declared on November 24 in a fact sheet that the notion of a professional degree is an internal classification utilized solely to assess eligibility for increased borrowing limits.
The agency stressed that this definition “has no bearing on whether a program is professional in nature or not.”
Regulation isn't final yet
The rule is not final. In the upcoming months, the Department of Education plans to release the proposed rule in the Federal Register. Following this, the public will have the opportunity to provide feedback before the rule is finalized.