Navigating the New Landscape of Student Financial Aid
Adjusted Borrowing Capacities for Graduate Studies
A recent legislative enactment introduces specialized borrowing thresholds for various graduate programs. Presently, federal loan limits for graduate students do not differentiate based on their field of study. However, under the updated provisions, annual limits for unsubsidized loans will remain constant at $20,500 for general graduate programs, while professional students pursuing fields like medicine, dentistry, or law will see their annual borrowing capacity increase to $50,000.
Revised Lifetime Loan Ceilings for Advanced Degrees
Significant adjustments are also being made to the cumulative loan amounts students can incur throughout their graduate education. Currently, all graduate students face a uniform lifetime borrowing cap of $138,500. Beginning in July 2026, this will be recalibrated, with a new total limit of $100,000 for unsubsidized loans for general graduate students. Conversely, professional students will benefit from a higher overall limit of $200,000. It is also important to note that, for both graduate and professional students, the availability of PLUS loans and subsidized loans will be discontinued.
Broadened Loan Policy Revisions for All University Students
The new bill grants tertiary educational institutions the autonomy to impose reduced yearly loan maximums for both undergraduate and graduate students, tailored to specific fields of study. Furthermore, a comprehensive lifetime aggregate borrowing cap of $257,500 has been established, applicable across all levels of study, including undergraduate, graduate, and doctoral programs. For students enrolled on a less than full-time basis, defined as fewer than 24 credit hours, a revised calculation method will determine their borrowing eligibility. This new formula will directly link the amount a student can borrow to the number of credits they are pursuing. For instance, an undergraduate student enrolling for only 12 credit hours in an academic year will only be able to access half of their otherwise available loan amount. Additionally, annual limits for Parent PLUS loans, designed to assist parents with their child's educational expenses, will be capped at $20,000, with a new overall aggregate limit of $65,000. These limits represent a departure from previous policies, which allowed borrowing amounts to fluctuate based on institutional attendance costs and a child's financial aid package.