What counts as a graduate student versus a professional student for federal student aid?
This question is about student loan borrowing limits.
With the Big Beautiful Bill ending Grad PLUS loans in 2026, many students looking forward to graduate school are wondering how the new student loan limits will affect them.
The Grad PLUS Loan Program allowed graduate students—both graduate and professional—to borrow up to their full cost of attendance. However, effective July 1, 2026, the new limits under the Graduate Student Direct Lending Program will be:
- Postgraduate students (Masters):$20,500 per year, total limit $100,000.
- Professional students (e.g. law, medicine):$50,000 per year, total limit $200,000.
So, the question arises: what is considered a graduate student, and what is considered a professional student. We break down Federal Student Aid (FSA) booklet.
What is graduate school?
These include academic programs Beyond a bachelor’s degreeusually in the arts and sciences. Here are some of the most popular graduate degrees and programs:
Master’s degrees:
- Master of Arts (MA)
- Master of Science (MSc)
- Master of Public Health (MPH)
- Master of Education (MED)
- Master of Fine Arts (MFA)
- Master of Business Administration (MBA)
Doctoral degrees:
- Ph.D. (Doctor of Philosophy)
- A.D.D. (PhD in Education)
What is a vocational school?
These are advanced degrees required to practice in certain fields (usually including professional licensure). These degrees also have a level of skill required beyond what is typically required for a bachelor’s degree.
According to the latest findings of the RISE Negotiated Rulemaking Committee, vocational school leads to one of the following degrees:
- Law (LLB or JD)
- Medicine (MD or DO)
- Pharmacy (Pharm.D.)
- Dentistry (DDS or DMD)
- Veterinary Medicine (DVM)
- Optometry (OD)
- Podiatry (DPM, DP, or Pod.D.)
- Clinical Psychology (Psy.D.)
- Chiropractic care (DC or DCM)
- Theology or Theology (MDiv or MHL) *Depends on context and accreditation
People ask too
What about dual/combo degree programs for bachelor’s and master’s degrees?
A student enrolled in a dual degree program can receive undergraduate financial aid until they complete the undergraduate portion of the program, in which case they can then receive graduate aid. This is usually considered a minimum of three years of study.
What is the difference between graduate school and professional school?
The graduate school generally focuses on advanced academic study and research, while the professional school prepares students for specific careers – such as medicine and law.
What is considered a graduate or professional student?
This is a student who is pursuing his education after obtaining his bachelor’s degree. There are two types: graduate and professional.
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Editor: Colin Greaves
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