Trump Administration Finalizes Federal Student Loan Caps Impacting Graduate Borrowers
The Department of Education has finalized new regulations on federal student loans as part of President Donald Trump's Working Families Tax Cuts Act. These regulations, effective from July 1, 2026, impose new borrowing limits for graduate and professional degree students. Graduate students can now borrow up to $20,500 annually and $100,000 in total, while professional students in fields such as medicine and law can borrow up to $50,000 annually and $200,000 in total. This marks a significant change from the previous limits of $20,500 annually and $138,500 in total for all graduate and professional programs. Additionally, the graduate PLUS loan program, which allowed borrowing up to the full cost of attendance, has been eliminated. Despite opposition from various stakeholders, the administration maintained a narrow definition of professional degrees, excluding fields like social work and nursing, though clinical psychology was added during the rulemaking process.