Federal Student Loan Changes

Starting July 1, 2026:

• The Grad PLUS Loan will no longer be available
• Graduate and professional students will borrow primarily through direct unsubsidized loans
• New annual and lifetime borrowing limits will apply
• These changes mainly affect students who begin borrowing on or after July 1, 2026.

A legacy borrower is a student who receives a federal graduate or professional loan before July 1, 2026.

Students who qualify as legacy borrowers can usually continue borrowing under the current federal loan system, which includes:

• Direct unsubsidized loans
• Grad PLUS loans that can cover the remaining cost of attendance

You may qualify if you:

• Borrow a federal graduate or professional loan before July 1, 2026, and
• Stay enrolled in the same program

Students who meet these conditions are generally allowed to continue using the current federal loan programs.

Students who qualify must finish their program within three years after July 1, 2026. In most cases, this means completing the program by June 30, 2029.

Students who are still enrolled after that time may need to borrow under the new federal loan limits, which do not include Grad PLUS loans.

Taking a long leave of absence can affect your loan eligibility.

If a student leaves their program and later returns, they may lose their legacy borrower protections.

If that happens, the student would return under the new federal loan limits that take effect after July 1, 2026, which do not include Grad PLUS loans.

If you are thinking about a research year, dual degree, or extended leave, we strongly recommend talking with Financial Aid first.

Not always.

It depends on things like:

• How long the leave lasts
• Whether you remain enrolled in your program
• How your enrollment is reported to the federal loan system

Because every situation is different, students should check with Financial Aid before requesting a leave of absence.

Students who begin borrowing on or after July 1, 2026 will have the following limits.

• MD and PharmD students
  Annual direct unsubsidized loan limit $50,000 per academic year
  Lifetime federal loan limit $200,000

• Physician Assistant students and other graduate programs
  Annual direct unsubsidized loan limit $20,500 per academic year
  Lifetime federal loan limit $100,000

Not always.

Under the current system, Grad PLUS loans allow students to borrow up to the full cost of attendance.

Under the new system, federal loans may not cover the entire cost of attendance. Students may need to consider:

• Scholarships
• Institutional loans
• Savings or outside resources
• Private loans

Yes.

Some academic opportunities, such as taking time away from your program to pursue another degree, may affect your federal loan eligibility under the new rules.

Before making decisions about:

• Leave of absence
• Dual degrees
• Research years
• Extended academic breaks

Please contact the Health Sciences Financial Aid Office so we can help you understand the possible financial aid impact.