As I prepare to begin my second year of college and receive my financial aid package, I have learnt that paying for school is not getting easier. I can already see that I may need to take on more loans just to keep up with the cost of attending college, and I know my student loans are required decisions I have to make every year just to stay enrolled. And this year isn’t getting any easier. Beginning July 2026, the federal government has changed several rules surrounding how students and families can borrow and repay those loans. So, here are some of the biggest changes:

Parent PLUS loans

The Parent PLUS loan now has a $20,000 annual limit per student. Families who previously relied on Parent PLUS loans to cover the remaining cost of college for their children may no longer be able to borrow as much as they once could. Also, borrowing will be limited to $65,000 over the lifetime of the dependent student. That could leave students facing a larger financial gap between what their school costs and what their financial aid actually covers.

Graduate PLUS loans

Graduate PLUS loans are being eliminated for new borrowers. Graduate students, starting after July 1st, 2026, generally cannot take out new Graduate PLUS loans and instead need to take out federal unsubsidized loans. This could make graduate education more difficult to afford, particularly for students attending expensive programs.

Graduate Unsubsidized Loan Limits:

Graduate students will generally be limited to $100,000 in federal loans, while students in federally recognized professional-degree programs can borrow up to $200,000. Professional graduate students also have a higher annual borrowing limit of $50,000, compared to $20,500 for other graduate students with non-professional degrees. Whether a student receives the higher limit depends on how their specific degree program is classified by the federal government.

Federal student loan repayment options.

A new plan, called the Repayment Assistance Plan (RAP), will give borrowers another way to repay their federal loans. At the same time, some of the repayment plans currently available will be phased out or become unavailable to certain borrowers. The repayment options a person can use will depend on when they took out their loans and what their individual circumstances are. In other words, students borrowing federal loans now, may have different repayment options after graduation than students who borrowed under the previous system.

Definition of a “professional degree” and “non-professional degree”

A professional degree is a degree designed to prepare students for a specific profession that requires advanced education (yet, not all degrees that require advanced education are not considered “professional”). Under the federal rules, professional-degree programs include medicine, dentistry, pharmacy, veterinary medicine, optometry, podiatry, chiropractic medicine and law. 

However, programs such as education, nursing, social work, public health, physical therapy and occupational therapy are not included under the federal government’s current definition of a professional degree for these higher loan limits. This means that students pursuing these careers that do require advanced degrees, could face lower graduate-student borrowing limits instead.

On the brighter side, the definition of a “professional degree” is still being debated. A federal judge, Beryl A. Howell of the U.S. The District Court for the District of Columbia, blocked the Department of Education’s original definition after finding that it likely exceeded the authority Congress had given the agency. The ruling did not eliminate the new loan caps, but it forced the Department to reconsider which degree programs qualify for the higher professional degree borrowing limit. So, as the legal dispute is still ongoing, programs that qualify for the higher loan limit could continue to change.

All of these changes will impact new undergraduate and graduate students, but, not every student will be affected immediately. Some borrowers may be “grandfathered in,” meaning they can continue using certain loan options under the old rules because they already had those loans before the new rules took effect. So, these new rules prevent students who were already committed to a degree program from suddenly losing access to financing they had planned around.
However, being “grandfathered in” does not mean every old loan rule continues forever. Eligibility can depend on when the student enrolled, when they first borrowed and whether they remain continuously enrolled in the same program. Students should check with their school’s financial aid office or Federal Student Aid (FSA) to determine whether they qualify for continuous coverage.

Where Students Can Find Help

Before taking out additional loans, students should look for scholarships and grants that can reduce the amount they need to borrow. Scholarships can be found through a college's financial aid office, local businesses and community foundations, employers, nonprofit organizations and state higher-education agencies. The U.S. Department of Labor's free scholarship search tool is another place to search for opportunities. Students should also check their school’s own scholarship database, since colleges often offer awards specifically for their students.

Grants are another important resource because they generally do not have to be re-paid. Students can apply for federal grants through the Free Application for Federal Student Aid (FAFSA), which can determine eligibility for programs such as the Federal Pell Grant. States, colleges and private organizations can also provide grants, so students should research opportunities beyond federal aid.

All in all, I am interested in graduate school and am considering becoming either a teacher or a lawyer. But these changes to graduate loans have made me rethink what I want my future to look like, and which path makes the most financial sense for me. Since I don’t want to take on more loans than I need to,I am focusing more on applying for scholarships, grants and other financial aid that could help me pursue the career I want without taking on unnecessary debt. While these changes have made planning for my future more complicated, they encourage me to think more carefully about my options and what is best for me. I urge other students to consider these options and to always contact your financial aid office if you believe you are not getting enough aid disbursement.