Major Federal Student Loan Changes Take Effect, Impacting Graduate Students and Parents

The U.S. Department of Education has implemented three significant changes to federal student loans, effective July 1, 2026, which could have long-term financial consequences for borrowers. The Grad PLUS loan program has been discontinued for new borrowers, and graduate and professional students can now only access federal funds through the Direct Unsubsidized Loan program with new borrowing limits. Parents also face new annual and aggregate borrowing limits on PLUS loans.