The United States Congress has passed the One Big Beautiful Bill Act (OBBBA), legislation that fundamentally restructures federal student lending beginning 1 July 2026.
What Is Being Eliminated
Grad PLUS loans — which allowed graduate students to borrow up to the full cost of attendance — are being eliminated for students who begin their programmes on or after 1 July 2026. Students already enrolled before this date are protected.
New Borrowing Caps
Under the new framework, graduate students will face strict lifetime limits: $100,000 for Master's degrees and $200,000 for doctoral degrees. These caps include both undergraduate and graduate federal borrowing combined.
Who Is Most Affected
Students in high-cost professional programmes — medical school, law school, and business school — are most severely affected, as costs routinely exceed the new caps.