• Beginning July 1, 2026, federal borrowing limits are lower for most graduate students, making it harder to finance the full cost of attendance.
• If you were already enrolled and borrowed a Grad PLUS loan before the cutoff, you may be able to continue using the program until you finish your degree.
• After exhausting federal loans, scholarships and other aid, many graduate students will need to compare private student lenders to cover remaining education costs.

I’m getting married next year. While my fiancé and I plan our wedding, we’re also planning our financial future. For us, that includes figuring out how we’ll manage our student loan debt.

My fiancé is a third-year Doctor of Physical Therapy student who has relied on federal student loans to pay for school, including Graduate PLUS loans. Those loans have helped cover the gap after he maxed out his federal Direct Unsubsidized loans.

Fortunately, he qualifies for the Grad PLUS phaseout exception. Because he was already enrolled and borrowing before the July 1, 2026, cutoff, he can continue taking out Grad PLUS loans until he finishes his program next year.

Not everyone is in that position. If you’re starting graduate school now, you likely won’t have access to Grad PLUS loans. Instead, you’ll face new federal borrowing limits that may leave you searching for other ways to pay for your degree.

As I looked into how these changes affect future graduate students, I found that while the loss of Grad PLUS loans narrows your federal financing options, you still have several ways to bridge the gap. Here’s what the end of the Grad PLUS program means and the alternatives you can consider.

What are Grad PLUS loans?

Grad PLUS loans are federal student loans designed for graduate and professional students who need to borrow beyond the annual limits of federal Direct Unsubsidized loans. These loans help cover educational expenses that other forms of financial aid don’t fully pay for. 

Most graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans, which carry a fixed interest rate set annually by the federal government. For loans first disbursed between July 1, 2025, and June 30, 2026, that rate is currently 8.07%.

Grad PLUS loans worked differently. Instead of imposing a fixed annual borrowing cap, they allowed eligible students to borrow up to their school’s full cost of attendance, minus any other financial aid they received. For years, these loans allowed borrowers could use the funds for expenses including tuition, housing, books and other school-related transportation. Existing Grad PLUS loans have a fixed interest rate of 9.07%. 

Grad PLUS loans are ending for new borrowers

Starting July 1, 2026, most new graduate students are no longer eligible for Grad PLUS loans.

Under the new rules, most graduate students can borrow up to $20,500 per year in federal Direct Unsubsidized Loans. Students enrolled in certain professional degree programs, such as medical and law school, can borrow up to $50,000 annually.

For many students, those limits won’t cover the full cost of attendance. That means you’ll likely need to combine federal loans with other funding sources, such as scholarships, employer tuition assistance, personal savings or private student loans.

Who still qualifies for Grad PLUS loans?

Although Grad PLUS loans are no longer available to most new borrowers, some current students are grandfathered into the program.

That’s the case for my fiancé. He began his Doctor of Physical Therapy program in 2024 and has borrowed Grad PLUS loans since then. Because he was already enrolled and borrowing before the July 1, 2026, cutoff, he can continue taking out Grad PLUS loans until he graduates in May 2027.

According to the Department of Education, you may also qualify for this limited exception if you:

• Were enrolled in a graduate or professional program as of June 30, 2026, and remain enrolled in that same program.
• Received a Grad PLUS loan for that program before July 1, 2026.
• Have not had a break in enrollment in that program.

If you meet these requirements, you can continue borrowing through the Grad PLUS program for up to three academic years or the remainder of your program, whichever is shorter.

If you’re starting graduate school now — or you didn’t previously receive a Grad PLUS loan for your current program — you won’t qualify for the exception. Instead, you’ll be subject to the new federal borrowing limits and may need to explore other ways to pay for school.

How to pay for grad school without Grad PLUS

Without Grad PLUS loans, you’ll likely need to combine federal Direct Unsubsidized Loans with other funding sources to cover the full cost of graduate school.

Start by maximizing funding that doesn’t have to be repaid, including scholarships, grants, fellowships, teaching or research assistantships and any employer tuition assistance or reimbursement programs. You can also use personal savings or family support, if available.

For many students, however, those resources won’t be enough. In that case, a private student loan may be the most practical way to bridge the remaining gap after you’ve exhausted your federal loan eligibility.

That’s the reality my fiancé would have faced. His physical therapy program offered very few scholarships, and paid teaching assistantships were highly competitive. If he didn’t qualify for the Grad PLUS transition exception, he likely would have needed to turn to a private student loan to cover the rest of his educational expenses.

If you’re considering a private student loan, compare multiple lenders before borrowing. Interest rates, repayment terms, borrower protections and cosigner release options can vary significantly from one lender to another.

How to choose a private student loan

If you’ve reached your federal borrowing limit, choosing the right private student loan can save you money and provide more flexibility during repayment. Since each lender sets its own rates, terms and eligibility requirements, it’s worth comparing multiple lenders before applying.

When evaluating private student loans, pay attention to:

• Interest rates: Compare both fixed and variable APRs. Your rate will depend on factors like your credit score, income and whether you apply with a cosigner.
• Repayment options: Some lenders offer interest-only, deferred or flat monthly payments while you’re in school, as well as flexible repayment terms after graduation.
• Cosigner requirements: If you have limited credit history, applying with a cosigner may help you qualify for a lower interest rate. Check whether the lender offers a cosigner release program after you’ve made a certain number of on-time payments.
• Borrower protections: Look for lenders that provide hardship assistance, deferment or forbearance options if you experience financial difficulty.
• Fees and discounts: Most private lenders don’t charge origination fees, but it’s still worth checking for late payment fees, returned payment fees and autopay interest rate discounts.

Because private student loans generally don’t offer the same borrower protections as federal loans, it’s usually best to exhaust your federal aid first. If you still have a funding gap, compare offers from several lenders to find the loan that best fits your financial situation.

Grad PLUS loans vs. private student loans

For many future graduate students, the biggest consequence of the Grad PLUS phaseout is that private student loans may become a much larger part of paying for school.

While scholarships, assistantships and employer tuition benefits can help reduce costs, they often aren’t enough to replace the borrowing capacity Grad PLUS loans provided. Once you’ve reached the federal Direct Unsubsidized Loan limit, a private student loan may be the only realistic way to cover the remaining cost of attendance.

That makes it especially important to understand how private student loans differ from Grad PLUS loans before you borrow.

Federal loans still offer stronger borrower protections and more flexible repayment options than private loans. However, borrowers with strong credit (or a qualified cosigner) may be able to secure competitive rates through a private lender. Because terms vary widely, it’s worth comparing multiple lenders before choosing a loan.

Bottom line: What the end of Grad PLUS loans means for you

The end of Grad PLUS loans marks one of the biggest changes to graduate school financing in years. While some current borrower, including my fiancé, can continue using the program until they graduate, most new graduate students no longer have that option.

If your federal Direct Unsubsidized Loans don’t cover your full cost of attendance, you’ll likely need to piece together other sources of funding. Scholarships, assistantships and employer tuition benefits can help, but for many students, private student loans will become the primary way to bridge the gap.

That makes shopping around for a private student loan just as important as choosing a graduate program. Comparing lenders, interest rates, repayment terms and borrower protections could save you thousands of dollars over the life of your loan.

FAQs: Grad PLUS loans

Are Grad PLUS loans still available in 2026? 

Grad PLUS loans are no longer available for new borrowers. Some graduate and professional students who were already using the program before the July 1, 2026 cutoff do still qualify for this program as it’s phased out. 

What are the new federal loan limits for grad students now? 

Most graduate students can borrow up to $20,500 per year in federal student loans now, with a lifetime limit of $100,000. Some professional programs, like medical and law school, accommodate borrowing limits up to $50,000 per year, with a lifetime limit of $200,000. 

What can Grad PLUS loans be used for? 

Grad PLUS loans can be used for most education-related expenses, including tuition and fees, housing, transportation and supplies.

Are private student loans the same as Grad PLUS loans? 

No. Grad PLUS loans are offered by the federal government. They have a fixed interest rate and often offer federal benefits like income-driven repayment plans. Private student loans are offered through private lenders. With private loans, interest rates and repayment terms can vary greatly.