Federal loan changes coming in Fall 2026: Considerations for graduate, medical, and professional school

In July, the U.S. government passed legislation that has changed the loan landscape by adding limits to the amount of government-funded loans that students can take out. 

Federal student loans will now have a total lifetime cap of $257.5K for all undergraduate and graduate school loans, including caps of $20,500 per year with a $100K total limit for graduate programs and $50K per year with a $200K total limit for professional programs (such as law, medical, and business school). There will also be a lifetime cap of $65K per child for Parent PLUS loans. Previously, students used Grad PLUS loans if they needed to borrow beyond the prior cap of $138.5K, however, Grad PLUS loans will be eliminated with the new rules that will take effect on July 1, 2026.  

We recognize that this may cause you concern and want to share resources and alternative options available to you: 

Current alternatives to overcoming the caps include school-based and third-party scholarships. Programs may award scholarships based on merit and need and some schools have separate applications for their scholarships. Check each school’s website and aid information to learn how they administer scholarships. You can also reach out to their admissions and financial aid administrators for more information. Outside of scholarships, there are private loans as well. Private loans come with their own pros and cons, which you can learn about on the MIT Student Financial Services website.  

In addition to using the resources on the SFS website, MIT students can meet with an SFS advisor to discuss budgeting and financial goals and attend SFS events on managing finances and budgeting. Graduate students can also sign up for financial consultations through the MIT Graduate Assistance and Information Network (GAIN). 

Since this legislation passed over the summer, we will also have to see how graduate schools respond. However, instead of waiting, there is an opportunity for you to act now by proactively considering your school list and tuition costs and applying for school-specific and third-party scholarships. Public schools with graduate and professional programs offer in-state tuition to residents that are often lower than tuition for private universities.  

Please feel free to schedule an appointment with a career advisor or prehealth advisor to discuss your plans and any questions you may have. Please note that we are also learning about the ins and outs of this new cap, just as you are. As we learn about how graduate schools are responding, we will update our website, but we may not know all the details until fall 2026. 

Review the resources below for additional resources for law and medical school: