New federal loan limits threaten graduate school access for millions of students

Millions of college students could face significant new obstacles paying for graduate school after federal loan limits were signed into law this summer as part of the One Big Beautiful Bill Act.

Starting July 1, 2026, Grad PLUS loans will be eliminated. Those loans previously allowed graduate students to borrow up to the full cost of attendance.

New borrowers will be limited to $200,000 for professional degrees like law and medicine. Students in other graduate programs can borrow up to $100,000.

WATCH: New federal loan limits eliminate Grad PLUS loans and cap borrowing at $100,000-$200,000

The lifetime limit for all federal student loans is now $257,500 per person.

But experts say the average cost of a bachelor's degree can reach $224,000 at private universities. Add law and medical school, and the total can exceed $390,000.

"Getting Master's and PhDs are going to be out of the question for a lot of students in a lot of areas," said Rodney Coates, a global and intercultural studies professor at Miami University.

"They don't have people who can be a co-signer, so that's already an option taken away because of that," said Pranathi Suhas, a third-year medical student.

The new limits could especially impact students from less prosperous backgrounds who rely on federal loans to pursue advanced degrees. Students say private loans aren't always an option.

For medical students, the financial burden is particularly steep.

"First years, or even ones that are applying right now, will definitely need to reevaluate their financial situations," said Suhas. "Just because of this, medical school is already such a huge financial burden. People have loans that grew up to like $300,000, even more, depending on what school you go to."

Coates pointed to the broader implications for workforce shortages in critical fields.

"If you are already dealing with a shortage of individuals in these areas. Adding this to that only exacerbates this," said Coates. "The changes eliminate what was previously guaranteeing that they would have access to graduate school."

This article was written by De'Jah Gross for the Scripps News Group in Cincinnati.