Major changes to federal student loans for graduate students took effect in July. Under the One Big Beautiful Bill Act, federal borrowing limits now depend on whether your program qualifies as a graduate or professional degree program.
Professional students can borrow up to $50,000 per year, while other graduate students are generally limited to $20,500. The law also phases out Graduate PLUS loans, which previously allowed eligible students to borrow up to their school’s full cost of attendance.
The Education Department’s definition of a professional degree program covers 11 fields. Several health care programs, including nursing and physical therapy, fall outside that definition and are therefore subject to the lower federal borrowing limit. For students in higher-cost programs, that could leave a larger gap between federal aid and the cost of completing their degree.
Ongoing litigation could affect how these classifications are applied. Here’s where the rules currently stand, what they mean for graduate students and what to do if your federal funding falls short.
What these changes mean for some students
“Whether the government labels your program ‘graduate’ or ‘professional’ can now mean a difference of nearly $30,000 in federal borrowing capacity in a single year. That is why this classification debate is much more than semantics,” says Rita Mkrtchyan, a California-based education attorney.
For students in nursing, physical therapy and other programs that don’t qualify for the higher professional-degree borrowing limit, the financial impact can be significant. Instead of accessing up to $50,000 per year in federal Direct Unsubsidized Loans, they may be limited to $20,500.
That difference can be especially important for students in higher-cost health care programs. If tuition and other education expenses exceed the federal borrowing limit, students may need to rely on scholarships, grants, employer assistance, personal funds or private student loans to cover the remaining costs. And for a multi-year program, that funding gap can add up quickly.
“Suppose a program costs $45,000 or $50,000 a year and a student is subject to the ordinary $20,500 graduate limit,” Mkrtchyan says. “That is not a small funding gap. Over several years, it can become a six-figure financing problem.”
What are my options if I hit the new loan limits?
If you hit the new federal loan limit and don’t qualify for Grad PLUS loans, you’ll need to find another way to pay for the remaining balance of school.
Whenever possible, maximize money you don’t need to pay back, like scholarships and grants. In addition to your FAFSA, you can find scholarship and grant options through scholarship search tools, state higher education agencies and your school’s financial aid office.
You can also participate in teaching or research assistantships, federal work-studies or employer tuition assistance programs. Although they function differently, these programs can all help you offset the cost of school while working.
Finally, you can explore private student loans to cover any remaining balance. Private lenders generally allow eligible borrowers to use student loans for education costs up to their school-certified cost of attendance, minus other financial aid, although borrowing limits and eligible expenses vary by lender.
What to consider with private student loans
If federal loans, scholarships, grants and other aid don’t cover your full cost of attendance, private student loans can help cover the remaining education expenses. For nursing, physical therapy and other graduate students facing the lower federal borrowing limit, that could mean financing the difference between available federal aid and the school-certified cost of attendance.
Private student loans work differently from federal loans. Rates and eligibility typically depend on factors such as your credit history and income, and adding a creditworthy cosigner may help you qualify or receive a lower rate. Repayment options and borrower protections also vary by lender.
Before borrowing, compare your total education costs with the federal aid available to determine how much you actually need to finance. This is particularly important for multi-year graduate programs, since a funding gap that seems manageable for one year could add up considerably over the course of your degree.
It’s also important to compare several private student loan lenders rather than choosing the first loan you qualify for. Consider the following:
- Interest rates: Compare annual percentage rates (APRs), not just advertised starting rates, and consider whether a fixed or variable rate makes sense for you.
- Fees: Check for origination, application and late-payment fees.
- Cosigner policies: Find out whether a cosigner is required and whether the lender offers cosigner release after you meet certain requirements.
- Repayment terms: Compare available repayment periods and in-school payment options. Make sure you understand what you’ll need to pay during school, when full repayment begins and how the term affects your monthly payment and total interest costs.
- Borrower protections: Compare options for deferment or forbearance if you experience financial hardship or return to school.
- Customer experience: Review customer service availability, borrower reviews and complaint history. Sources such as Trustpilot and the Better Business Bureau can help identify recurring issues, although individual reviews may not reflect every borrower’s experience.
Private loans can be a useful way to close a remaining education funding gap, but make sure you understand the loan terms and how repayment will fit into your finances after graduation. “Private loans can fill a gap, but they do not necessarily carry the same repayment options and federal borrower protections,” Mkrtchyan says.
Compare private student loans
The right lender depends on factors including your credit, degree program, desired repayment term and whether you’re applying with a cosigner. Here’s how four major private student loan lenders compare.
| Provider | Best for | Loan amounts | Repayment terns | Cosigner release |
| Sallie Mae | Low starting interest rates | $1,000 up to full cost of attendance | 5–15 years | Can apply after 12 on-time payments |
| College Ave | Flexible repayment options | $1,000 up to full cost of attendance | 5–15 years | Can apply after half of loan repayment term, borrower income must be double outstanding balance |
| SoFi | Robust customer service | $1,000 up to full cost of attendance | 5–20 years | Can apply after 12 months of on-time payments or equivalent lump sum payment |
| Ascent | Borrowers without a cosigner | $2,001–$200,000 or full cost of attendance | 5–20 years | Can apply after 12 consecutive on-time payments |
Tip: Many private lenders let you prequalify and check potential rates with a soft credit check that doesn’t affect your credit score. Comparing personalized offers can give you a better idea of what you’ll actually pay than comparing lenders based on their advertised minimum rates alone.
Bottom line
New federal borrowing limits could leave nursing, physical therapy and other graduate students with a significant gap between the federal loans available to them and the cost of completing their degrees. If scholarships, grants, employer assistance and federal loans aren’t enough, private student loans can help cover remaining education expenses.
Before borrowing, calculate how much you actually need and compare private lenders based on interest rates, repayment terms, fees, cosigner requirements and borrower protections. Getting rate estimates from multiple lenders can help you find the most affordable option for your situation.
Your school’s financial aid office can also help you determine which federal aid you qualify for and how much of your remaining cost you may need to finance through other sources.
FAQs about loans for non-professional programs
What’s changed about federal student loans for graduate students?
Starting in July 2026, new federal borrowing limits took effect for graduate students. Students in qualifying professional degree programs, such as law and medicine, can borrow up to $50,000 per year in federal Direct Unsubsidized Loans, while other graduate students are generally limited to $20,500 per year. Graduate PLUS loans, which previously allowed eligible students to borrow up to the full cost of attendance, are also being phased out.
Which degree programs qualify for higher federal loan limits?
Certain professional degree programs qualify for the higher federal loan limits, including law, medicine, dentistry and veterinary medicine. However, temporary court orders and pending litigation have affected the official list of qualifying professional degrees. Check with your school’s financial aid office to confirm how your program is currently classified.
What happens if federal loans don’t cover the full cost of my schooling?
If federal loans don’t cover your full cost of attendance, look for scholarships, grants, assistantships, employer tuition assistance and other funding you don’t have to repay. If you still have a funding gap, private student loans can help cover remaining eligible education expenses. Compare offers from multiple private lenders, including interest rates, repayment terms, fees and borrower protections, and borrow only what you need.
Are Grad PLUS loans still available?
Grad PLUS loans are being phased out for new borrowers. However, some students who were enrolled in their current program and received a Grad PLUS loan before July 1, 2026, may continue borrowing through the program during a transitional period if they meet the eligibility requirements