If you are heading to graduate or professional school this fall, the way you pay for it is about to change. Starting July 1, 2026, the federal Grad PLUS loan program ends for new borrowers. For almost 20 years, Grad PLUS let graduate and professional students borrow up to the full cost of their program from the government. That option is going away, and new federal borrowing caps are taking its place.
If this feels stressful, you are not alone. Graduate and professional school is expensive, and losing a major funding source on short notice is a lot to absorb. The good news is that you still have real options. This guide walks through exactly what is changing, who is affected, and the practical steps you can take to cover the gap without panicking.
What Is Changing on July 1, 2026
The One Big Beautiful Bill Act (OBBBA) made several changes to federal student loans. Two of them matter most for graduate and professional students.
First, Grad PLUS loans are being eliminated for new borrowers. Before this change, a graduate student could borrow up to the entire cost of attendance through Grad PLUS, with no yearly or lifetime limit. After July 1, 2026, that program closes to new borrowers.
Second, new federal borrowing limits take effect. Instead of being able to borrow up to the full cost of your program, you will be capped at a set amount each year and over your lifetime. Here is how the new federal limits break down:
- Graduate programs (most master's and doctoral degrees): up to $20,500 per year and $100,000 total over your lifetime.
- Professional programs (a specific list of degrees): up to $50,000 per year and $200,000 total over your lifetime.
- All federal student loans combined: a new overall lifetime cap of $257,500, which includes what you borrowed as an undergraduate.
Only 11 types of programs qualify for the higher "professional" limit: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. If your program is not on that list, you fall under the lower graduate limit, even if your degree feels professional in nature.
Who Is Affected and Who Is Protected
Whether these changes hit you depends on one thing: when you first borrowed for your current program.
If you have already taken out a Direct Unsubsidized Loan or a Grad PLUS loan for your current program before July 1, 2026, you are generally covered by what is called a "legacy provision." This lets you keep borrowing under the old rules for up to three more years, or until you finish your program, whichever comes first. So if you are partway through a degree and have already borrowed, you likely have some breathing room.
If you are starting a new program on or after July 1, 2026, the new caps apply to you from day one. This is the group that needs to plan most carefully.
It is worth knowing that these changes arrive at a moment when graduate enrollment is already flat. According to the National Student Clearinghouse Research Center, graduate enrollment held steady at about 3.1 million students in spring 2026, essentially unchanged from the year before. Schools are competing for students, which can work in your favor when you ask for more aid.
Step 1: Figure Out Your Real Funding Gap
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- Rank #1Editor's Pick
Graduate
College Ave
Best for: Students who want flexible repayment options and no origination fees
- 0.25% rate reduction with auto-pay
- Four in-school repayment options
- No application, origination, or prepayment fees
- Borrow from $1,000 up to 100% of cost of attendance
Apply NowRates
From 2.29% APR
2.29% - 15.99% fixed APR, 3.89% - 15.99% variable APR
Disclosures+
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2) As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (APR): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 9/8/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Rank #2
Graduate
Sallie Mae
Best for: Undergraduate and graduate students, and parents, comparing competitive fixed- and variable-rate private student loans
- Competitive variable and fixed rates
- Multiple repayment options
- Cosigner release available
- No origination fees
Apply NowRates
From 1.95% APR
1.95% - 14.99% fixed APR, 3.75% - 14.48% variable APR
Disclosures+
Graduate School Loan: Examples of typical transactions for a $10,000 Graduate School Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 2-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 14.69% fixed APR, 27 payments of $25.00, 119 payments of $204.84 and one payment of $83.82, for a total loan cost of $25,134.78. For a borrower with the longest loan term, it works out to 14.78% fixed APR, 27 payments of $25.00, 178 payments of $178.22 and one payment of $98.65, for a total loan cost of $32,496.81. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not. Information advertised valid as of 08/25/2026. Rates: Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Cosigner Release: Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can't have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can't be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
- Rank #3
Graduate
Earnest
Best for: Borrowers who want a zero-fee¹ lender with flexible repayment options² across undergrad, grad, and professional school programs
- 0.25% Auto Pay³ discount plus 0.25% Loyalty⁴ discount for eligible returning borrowers
- No origination fees, late fees, or prepayment penalties¹
- Borrow $1,000⁵ to $400,000 with 5, 7, 10, 12, or 15-year terms⁶
- Four repayment options², a 9-month grace period⁷, and cosigner release for eligible borrowers⁸
Check EligibilityRates
Lowest Rate 2.29%
2.29% - 16.24% fixed APR, 4.74% - 16.60% variable APR
Disclosures+
Earnest Private Student Loans are subject to credit approval. ¹Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1. ²Repayment terms and repayment options available vary based on loan type. ³You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option. ⁴To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away. ⁵Residents of Hawaii must request a loan of at least $1,501. ⁶Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples: 1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10. 2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months. 3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0. ⁷Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. ⁸To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply. ⁹Includes 0.50% combined Auto Pay and Loyalty discounts. Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% - 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% - 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change. Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America. © 2026 Earnest LLC. All rights reserved.
Before you borrow a dollar, get clear on the actual number you need to cover. Your funding gap is simply the cost of attendance minus everything that does not have to be repaid or borrowed privately.
Start by listing your total cost of attendance from the school's financial aid office. This includes tuition, fees, living costs, books, and supplies. Then subtract:
- Scholarships, grants, and fellowships
- Assistantship stipends or tuition waivers
- Employer tuition benefits
- Savings or family contributions you plan to use
- The federal loans you can still take (up to $20,500 or $50,000 per year, depending on your program)
Whatever is left is your true gap. That is the number you are trying to fill, and knowing it keeps you from over-borrowing. Building a clear plan first is one of the most effective ways to reduce your college costs before you commit to any loan.
You can map all of this out for your specific school with a free plan. Create your free CollegeLens plan to see your costs and funding options side by side.
Step 2: Take the Federal Loans You Qualify For First
Even with the new caps, federal loans should usually be your first borrowing choice. They come with fixed interest rates, flexible repayment options, and protections that private loans do not offer.
For graduate and professional students, the federal Direct Unsubsidized Loan rate for the 2026-27 year is 8.07%. Borrow up to your annual federal limit before turning to anything else, because federal loans give you access to income-driven repayment and other safety nets.
One important note about repayment: students who first borrow on or after July 1, 2026 will have access to the new Repayment Assistance Plan (RAP) and Income-Based Repayment (IBR), but not the older plans. RAP sets your monthly payment at 1% to 10% of your income and can lead to forgiveness after 30 years of payments. If you want the full picture, read our guide on what RAP is and how to enroll.
Step 3: Chase Down Money You Never Have to Repay
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The best way to handle a smaller borrowing limit is to need less of a loan in the first place. That means leaning hard on funding that does not have to be repaid.
- Assistantships. Teaching and research assistantships often come with a stipend and a partial or full tuition waiver. These are some of the most valuable funding sources in graduate school, so ask every program whether they are available and how to apply.
- Fellowships and grants. Many departments, professional associations, and outside foundations offer fellowships for graduate students. Search by your field, your background, and your career goals.
- Departmental and institutional scholarships. Schools often have aid that is not advertised widely. Contact the financial aid office and your department directly to ask what exists.
- Employer tuition assistance. If you are working, check whether your employer offers tuition benefits. Some employers pay several thousand dollars a year toward graduate degrees, especially if your study relates to your job.
Even a few thousand dollars from these sources can shrink your gap enough that you avoid private borrowing altogether.
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Step 4: Negotiate and Appeal Your Aid Offer
You are allowed to ask a school for more money, and many students do. If your financial situation has changed, or if you have a better offer from a comparable program, you can submit an appeal to the financial aid office.
Be specific and polite. Explain what changed, attach documentation, and state plainly that cost is a deciding factor for you. With graduate enrollment flat, schools have a reason to keep strong applicants from walking away. The worst they can say is no, and you are no worse off for asking.
Step 5: Compare Private Loans Carefully, and Only for the Remaining Gap
Our guide to the best private student loans for graduate students compares the lenders worth shortlisting, including which ones accept cosigners, which will lend to international and DACA students, and which weigh your program instead of your credit score.
If you are starting your lender research, our Sallie Mae review, College Ave review, and Earnest review are good places to begin, along with our roundup of the best private student loans for graduate students.
If federal loans, free money, and savings still leave a gap, a private student loan can fill it. With Grad PLUS gone, more graduate and professional students will turn to private lenders, so it pays to shop carefully.
Private loan rates currently range widely, from roughly 4.99% to 17%, depending on your credit and whether you have a cosigner. Keep these points in mind:
- Your credit matters. The best rates go to borrowers with strong credit or a creditworthy cosigner. If your credit is thin, a cosigner can lower your rate significantly.
- Fixed versus variable. A fixed rate stays the same for the life of the loan. A variable rate can start lower but rise over time. Choose based on how much risk you can handle.
- Fewer protections. Private loans usually do not offer income-driven repayment or loan forgiveness. Read the fine print on deferment, forbearance, and what happens if you lose income.
- Borrow only what you need. It can be tempting to borrow extra for a cushion, but every dollar comes with interest. Stick to your real gap number.
Before you sign anything, walk through our list of questions to ask before comparing private lenders so you know what to look for.
What About Specific High-Cost Programs
Students in medicine, law, dentistry, and similar fields face the biggest squeeze because these programs cost the most and now have firm limits. The new professional caps of $50,000 a year and $200,000 lifetime help, but they may not cover the full price of an expensive program.
If you are in one of these fields, your plan should lean even harder on scholarships, school-specific aid, and careful private borrowing. Some states have also pushed back on the new limits out of concern for fields like nursing and the health professions. You can read more in our coverage of the states suing over the new graduate loan limits.
A Simple Action Plan
If you only do five things, do these:
- Confirm whether the legacy provision protects you by checking when you first borrowed for your current program.
- Get your exact cost of attendance and calculate your true funding gap.
- Apply for every assistantship, fellowship, grant, and employer benefit you can find.
- Take the federal loans you qualify for before any private loan.
- If a gap remains, compare private lenders carefully and borrow only what you need.
You Have More Control Than It Feels Like
Losing Grad PLUS is a real change, and it is fair to feel uneasy about it. But the path to paying for graduate or professional school has not closed. It just requires a clearer plan and a little more legwork up front. Free money first, then federal loans, then private loans for whatever is left. That order will save you the most over time.
If you are filling out federal aid forms, start with the FAFSA, which is still the gateway to federal graduate loans. And when you are ready to see your full picture, create your free CollegeLens plan to compare your costs and funding options in one place.
You do not have to figure this out all at once. Take it one step at a time, and start with the step that needs you most today.
Sravani at CollegeLens
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