economy
April 30, 2026
Trump administration finalizes federal student loan caps—what it means for borrowers
The final regulation keeps a narrow definition of professional degrees that are subject to the higher annual and lifetime graduate loan limits.
TL;DR
- New annual borrowing limits: $20,500 for graduate degrees, $50,000 for professional degrees.
- New lifetime borrowing limits: $100,000 for graduate degrees, $200,000 for professional degrees.
- Graduate PLUS loan program eliminated.
- Definition of professional degrees is narrowed to 11 specific doctorate programs.
- Current students are exempt from new limits for up to three years.
- New aggregate lifetime loan limit of $257,500, including undergraduate loans.
- Federal loans remain the preferred option due to forgiveness and fixed interest rates compared to private loans.
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