The United States government is preparing for a major shift in how graduate and professional students finance their education. The administration, led by President Donald Trump, plans to implement new federal loan limits from July 1, 2026, marking a significant change in graduate lending policies. The goal is to redefine how much students can borrow and which programmes qualify for the highest loan caps.

Under the new rules, undergraduate borrowing limits will remain unchanged. Dependent undergraduate students will continue to access up to USD 7,500 per year, depending on their class level. The major adjustments focus on graduate and professional students, who will face newly defined loan ceilings.

Graduate students may borrow up to USD 20,500 annually, with a total cap of USD 100,000. Students enrolled in programmes classified as professional may access up to USD 50,000 per year, with a total borrowing limit of USD 200,000. Graduate PLUS loans, which previously allowed borrowing up to the full cost of attendance, will be discontinued.

Central to this reform is the definition of a professional degree. According to the Department of Education, a professional degree must represent completion of all requirements necessary to begin practice in a specific profession and demonstrate skills beyond the bachelor’s level.

Using this definition, the department has identified 11 fields that automatically qualify for the higher borrowing ceiling reserved for professional degrees. These programmes typically require doctoral-level credentials and prepare students for licensed practice.

Beyond these 11 areas, more than 40 additional fields may qualify if they meet standards related to licensure, skill level, and doctoral pathways. Institutions will be responsible for determining whether individual programmes satisfy the criteria, allowing classification to vary between universities.

Several national bodies have expressed concerns about exclusions under the proposed rule. Organisations representing nursing and social work argue that their fields require extensive graduate training yet fall outside the current definition for higher borrowing thresholds. They caution that this could push students toward costlier private loans and worsen existing workforce shortages.

The regulation is not yet final. The Department of Education will publish the proposed rule in the Federal Register, after which the public may submit comments. The real impact will emerge gradually as universities adjust financial aid structures and students reassess the affordability of professional pathways.