Federal Graduate (PLUS) Loan
Effective July 1, 2026, the Graduate PLUS program will be eliminated for new borrowers and Parent PLUS loans will have strict new borrowing limits. These changes were enacted under the One Big Beautiful Bill Act, signed into law in July 2025.
For graduate and professional students, the Grad PLUS program will be abolished for all new loans disbursed after July 1, 2026.
- "Grandfathering" provision: If you took out a Grad PLUS loan before July 1, 2026, you can continue borrowing under the old rules for up to three more years or until you complete your program, whichever comes first.
The only federal loan option for new graduate and professional students will then be the Direct Unsubsidized Loan of up to $20,500 annually starting on July 1, 2026. Otherwise, students will need to research and apply for private education loans.
- Borrowing caps: New annual and aggregate limits will apply:
- Annual limit: $20,500 for general graduate programs; $50,000 for professional degrees such as doctorates.
- Lifetime limit: $100,000 for general graduate programs; $200,000 for professional degrees. This includes both undergraduate and graduate borrowing.
Until June 30, 2026:
The Federal Graduate PLUS Loan Program is similar to Federal Direct Parent Loans. The loans are credit based. As of July 1, 2025, the interest rate for the Federal Graduate PLUS Loan will be 8.94 percent. To be considered for a Graduate PLUS Loan, students must first apply with a FAFSA to determine eligibility for the Federal Unsubsidized Student Loan Program. This loan is not based on financial need. The student must show creditworthiness, and interest is charged while the student attends school. Principal and interest repayment begins within 60 days of the date that the student is no longer enrolled at least half time.
To apply for a Graduate PLUS Loan, a student must complete the Federal Graduate Loan Request Form online at studentaid.gov. The student must log in to access the request process using his or her FAFSA login information.
If the student is approved for the loan, s/he must complete the following two online processes.
Borrowers who choose to appeal/challenge the credit decision, and are approved, will be required to complete additional PLUS credit counseling before the school can disburse any funds on his/her behalf. PLUS counseling can be completed at studentaid.gov.