New Federal Student Loan Limits and Repayment Options Take Effect July 1, Impacting Graduate and Professional Students

Significant changes to federal student loan programs, including new borrowing limits for graduate and professional students, the elimination of Grad PLUS loans for new borrowers, and a restructuring of income-driven repayment plans (phasing out SAVE, IBR, PAYE, ICR in favor of new Repayment Assistance Program and Tiered Standard Plan), officially took effect on July 1, 2026. These changes are part of the 'Working Families Tax Cut Act' and are expected to increase out-of-pocket costs for some students and alter repayment strategies.