"Major changes to the federal student loan system are set to take effect in 2026, reshaping how graduate and professional students, including many pursuing healthcare careers, will finance their education. For decades, graduate and professional students had access to the same federal loan programs and could borrow up to the full cost of attendance through a combination of Direct Unsubsidized Loans and Graduate PLUS loans. That structure is now shifting, with new borrowing limits and the elimination of a key funding source," MHAOnline.com reports.

"'So on the professional side, Congress did something kind of new,' explained Jill Desjean, director of policy analysis at NASFAA. 'Graduate and professional students were never distinguished in any way in terms of their federal student loan eligibility. They all qualified for the same types of loans and the same amounts.'

Under the new law, Congress has established separate loan limits for graduate and professional students, fundamentally changing the amount each group can borrow through federal programs.

Beginning in 2026, graduate students will have a $20,500 borrowing limit under the Direct Unsubsidized Loan Program. Professional students, including those in fields such as medicine, dentistry, and law, will see their annual limit increase to $50,000. While that higher cap may appear to expand access to professional programs with high tuition, it comes with a significant change: the elimination of the Graduate PLUS loan program for new borrowers.

'That’s a big deal in and of itself,' Desjean said, “but it’s an even bigger deal because Congress also eliminates a big funding source for graduate and professional students called the Graduate PLUS loan.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 2/9/2026