New Federal Student Loan Caps and Professional Degree Definitions Impact Students Nationwide

New federal loan caps, enacted by Public Law 119-21, took effect on July 1, 2026, significantly impacting medical and other professional school students by setting annual and lifetime borrowing limits and eliminating Graduate PLUS loans. Universities are now guiding students on how these changes affect their financial aid and borrowing options. Additionally, a federal court order led the Department of Education to issue an updated list classifying additional graduate programs as 'professional degrees' for borrowing purposes, with a final court decision anticipated in December.