Key Changes to Federal Student Loans Effective in July 2026

Enacted in July 2025, the One Big Beautiful Bill Act (H.R.1) made significant changes in federal student loan programs. The Department of Education has now finalized regulations eliminating the Grad PLUS loan program and implementing the graduate and professional student loan limits set forth in the One Big Beautiful Bill Act. We recognize the uncertainty these changes cause for many in our graduate community.

There are no changes to federal student loans for the 2025–2026 academic year. The legislative changes affecting federal student loan types and their annual and aggregate limits will apply to borrowers whose program has a first disbursement on or after July 1, 2026, effective that same date.

New Graduate Loan Limits and Definitions of Professional Degrees 

Beginning on or after July 1, 2026: 

  • Students in “Professional” programs (as defined below) can borrow up to $50,000 annually, with a lifetime limit of $200,000;
  • Graduate students in all other programs can borrow up to $20,500 annually, with a lifetime limit of $100,000.
  • All borrowers who receive a loan made on or after July 1, 2026, are subject to an aggregate lifetime loan limit of $257,500, with narrow limits as described in this fact sheet.

Under the new regulations, a professional degree is one that:  
(1) Signifies both completion of the academic requirements for beginning practice in a given profession, and a level of professional skill beyond that normally required for a bachelor’s degree; 
(2) Is generally at the doctoral level, and that requires at least six academic years of postsecondary education coursework for completion, including at least two years of postbaccalaureate level coursework;  
(3) Generally requires professional licensure to begin practice; and  
(4) Is within a four-digit Classification of Instructional Programs (CIP) code in the same intermediate group as the core list of 11 program fields.  

The definition includes a list of 11 core program fields: pharmacy (Pharm.D.), dentistry (D.D.S. or D.M.D.), veterinary medicine (D.V.M.), chiropractic (D.C. or D.C.M.), law (L.L.B. or J.D.), medicine (M.D.), optometry (O.D.), osteopathic medicine (D.O.), podiatry (D.P.M., D.P., or Pod.D.), theology (M.Div., or M.H.L.) and clinical psychology (Psy.D. or Ph.D.). 

The U.S. Department of Education has also eliminated the Grad PLUS program as of July 1, 2026. However, there is a legacy provision for students continuing in their graduate or professional program who have received a federal loan disbursement for the current program prior to July 1, 2026. While continuously enrolled in the same program, the student can borrow from the Grad PLUS program for three academic years or the remainder of their program, whichever is less. All federal graduate/professional loans will be subject to proration if the borrower is attending less-than-fulltime. 

Private Loans for Graduate Students

In response to recent changes in federal student loan programs that take effect on July 1, 2026, Georgetown University has explored several financing options for graduate students. Georgetown has identified six major financial institutions as Preferred Lenders for eligible Georgetown graduate students based on their available loan terms and commitment to customer support. In vetting private education loan providers for inclusion as a Preferred Lender, Georgetown considered lender history and financial stability, value and lifetime loan cost to borrowers, flexibility for the borrower, customer service and innovation of product offerings. However, Georgetown students are in no way limited to just the Preferred Lenders, and there will be no penalty for obtaining private education loans from a lender not identified as a Georgetown Preferred Lender. 

Impacts for Undergraduate Students and Parent PLUS Loans

We do not currently expect any impact to undergraduate student financial aid, but the most up-to-date information can be found on the Office of Student Financial Aid Undergraduate website.  

There are changes to Parent PLUS loans, which are outlined here. New loan limits (included below) will go into effect July 1, 2026:

  • $20,000 per dependent student, per year (annual limit);
  • $65,000 per dependent student, in total (lifetime limit).

Under these new limits, parents of full-time students may exhaust their ability to borrow Parent PLUS loans by the student’s third year of undergraduate study.

Impacts for Part-Time Students

According to the Department of Education, beginning on July 1, 2026, institutions will be required to utilize a schedule of reductions formula for part-time students, which will reduce the annual loan eligibility of those who are enrolled less than full-time.

New Loan Repayment Plans and Public Student Loan Forgiveness (PSLF)

Additionally, only two repayment options will be offered for Direct Loans and Parent PLUS Loans borrowed on or after July 1, 2026:

  • Standard Plan: Offers fixed terms of 10 to 25 years, depending on the amount borrowed;
  • Repayment Assistance Plan (RAP);

Effective July 1, 2026, borrowers in repayment currently and enrolled in the sunsetting SAVE plan will have 90 days to enter another income-driven plan (Income-Based Repayment (IBR), Income-Contingent Repayment (ICR) or the new RAP); otherwise, the Department of Education will automatically enroll the borrower into either the Standard Repayment Plan or the new Tiered Standard Plan.

Regarding the Public Student Loan Forgiveness (PSLF) program, studentaid.gov has published as of April 2026, “The U.S. Department of Education published its final PSLF program regulations that will be effective on July 1, 2026. The program is not changing today, and borrowers do not need to take any action.” Find more information about the PSLF program here.

Contact Information

If you have questions about financial aid or would like to speak with a member of Georgetown’s Graduate Financial Aid Team, please reach out to the applicable campus office: Main Campus Office of Student Financial Aid, School of Medicine Financial Aid, and Law Center Financial Aid.

This page was last updated on April 24, 2026. The information above is subject to change. Students should refer to federal governmental sources for official guidance. See studentaid.gov for more information.