Federal

Graduate Students Can No Longer Borrow the Full Cost of School Through Federal Loans Under New Trump Rules

Sweeping changes to the federal student loan system are now reshaping how Americans finance graduate and professional degrees, with new borrowing caps in effect, the Graduate PLUS program closed to most new borrowers, a court fight underway over which degrees qualify for higher limits, and private lenders openly preparing for increased demand from students who can no longer finance the full cost of some programs through federal loans. The changes stem from the federal tax and spending law signed by President Donald Trump on July 4, 2025, which the Department of Education now refers to as the Working Families Tax Cuts Act. Beginning July 1, 2026, new graduate borrowers generally became limited to $20,500 a year and $100,000 in graduate borrowing, while students in programs classified as leading to a professional degree may borrow up to $50,000 annually and $200,000 in total. The law also established a $257,500 lifetime federal student-loan limit for most borrowers, excluding Parent PLU...