Congress Ends PLUS Loans for New Graduate Students, Caps Other Federal Aid

Congress has passed legislation, effective July 1, 2026, eliminating PLUS Loans for new graduate and professional student borrowers. Direct Unsubsidized Loans are now capped at $20,500 annually, with a $100,000 aggregate limit. These changes fundamentally restructure federal student lending, restricting repayment flexibility and significantly impacting higher education financing for new graduate students.