- There will be new federal borrowing limits for professional students starting in the 2026-27 school year.
- Professional students will be capped at $50,000 per year and a total of $200,000 in direct federal loans.
- The new limits may leave significant funding gaps for some health sciences programs that are not classified as “professional.”
For students pursuing law, medicine, dentistry, and other professional degrees, federal student loan borrowing is about to change in ways that could reshape how these programs are funded.
Beginning July 1, 2026, professional students will no longer be able to use Grad PLUS loans, which historically allowed borrowing up to the full cost of attendance. Instead, federal borrowing for professional students will be limited to Direct Loans with annual and lifetime maximums. This shift is now law, with the passage of the One Big Beautiful Bill Act (OBBBA).
While professional students will still have access to federal loans, the new limits impose borrowing limits that many programs already exceed — sometimes by a wide margin.
New borrowing limits for professional student loans
Under the new law, professional students will face the following federal loan limits:
- Annual maximum: $50,000 per academic year
- Lifetime cap: $200,000
These limits apply only to graduate-level borrowing and do not include any federal loans taken out during undergraduate study.
Professional programs typically include law (JD), medicine (MD, DO), dentistry (DDS, DMD), veterinary medicine, and some health professions. These programs are treated separately from master’s and doctoral programs, which face lower borrowing limits.
You can see full details of what is considered graduate versus professional degrees here.
This change replaces the previous system, under which professional students could borrow unlimited amounts through Grad PLUS loans as long as their school certifies the cost.
Grandparent for existing Grad PLUS borrowers
The law includes a transitional provision for current vocational students.
Borrowers who took out at least one Grad PLUS loan before June 30, 2026, can continue to borrow under the Grad PLUS system. This requirement continues until the borrower completes his or her current program or for an additional three academic years, whichever comes first.
For students already enrolled in multi-year professional programs, the grandfather clause may cover most or all of the remaining costs. For others, especially those who start early in longer programs, the three-year limit may still require adjustments before graduation.
Students who do not borrow Grad PLUS by the deadline will not be eligible, even if they are already enrolled.
What professional students need to consider
For students who plan to enroll after 2026, understanding the full cost of a professional degree will be more important than ever.
Comparing tuition fees, projected borrowing needs, ban or licensing outcomes, and post-graduation earnings may play a larger role in determining where (and if) to enroll. It is very likely that many professional students will need to supplement their federal loans with private student loans for graduate school.
For current students, confirming whether they qualify for the grandfathered Grad PLUS provision can impact their borrowing options for the rest of their program.
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