Changes in federal funding for graduate and professional school
Federal legislation passed in July 2025 has significantly changed the loans available for graduate education. The new legislation takes effect on July 1, 2026, and thus will affect students who begin their graduate education in September 2026.
1. Graduate students
- The limit for graduate students in non-professional programs will be $20,500 per year.
- The aggregate or lifetime limit will be $100,000.
- This limit does not include loans borrowed for undergraduate education.
2. Professional students
- The limit for professional students (e.g., medicine, law) will be $50,000 per year.
- The aggregate or lifetime limit will be $200,000.
3. Borrowers who are both graduate and professional students at different points in their academic careers can borrow up to $200,000 total for their graduate and professional studies.
4. The Grad PLUS loan program, which previously allowed graduate students to borrow up to their school’s cost of attendance (minus other financial aid), will be eliminated for new borrowers starting July 1, 2026.
- Graduate students who are already enrolled and who have borrowed Grad PLUS loans before July 1, 2026, will be able to continue borrowing under current limits – up to 3 academic years or the remainder of their program, whichever is less.
5. The new rules for funding are tied to the date that you begin graduate school and not to the date that you’re admitted. Thus, if you are admitted in March 2026 and you take out a loan in April 2026 to pay for graduate school beginning in September 2026, you will be covered by the new funding rules.
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Financial aid professionals and others who are involved in providing graduate school funding expect that private lenders (i.e., retail banks and others) will make funds available to help support graduate school education. We will know more in the coming months as private lenders step into this space.
Graduate schools are currently looking at their funding to figure out how the new rules are going to affect their programs. They will be assessing the situation at the same time as you’re applying, and so they may not have immediate answers to your questions. Please be patient when contacting them for information.
Universities will ask you to submit an application for financial aid with your overall application, with sources of funding usually including the following:
| Grants and Fellowships | Grants may include full or partial tuition and full or partial living expenses, and they are typically awarded to applicants on the basis of their academic achievement | Many universities have their own fellowships, and there are national fellowship programs as well |
| Loans | Loans are available both from the U.S. and state governments (for U.S. institutions) and from other private funders. If you are a U.S. citizen or permanent resident, you will need to complete the Free Application for Federal Student Aid (FAFSA) | International students are not eligible for federal or state loan programs. Most private funders will require a U.S. citizen or permanent resident to co-sign the loan. |
| Teaching or Research Assistantships | These assistantships are typically paid positions that enable you to earn money to cover some of the costs of graduate education | Assistants are paid a stipend or wage, or they are given a reduction in tuition |
| Resident Assistantships |
Resident Assistants typically live in undergraduate or graduate residence halls and receive room and board for monitoring the health and safety of residents in a particular building or complex | |
| Employer-financed Support or Other Part-time Employment | Please see the discussion on the Graduate School site: Can I combine work and graduate school? |