What Changed on July 1, 2026
Under the One Big Beautiful Bill Act, the Grad PLUS program closed to new borrowers for loans made on or after July 1, 2026. Grad PLUS previously allowed graduate and professional students to borrow up to their full cost of attendance with no annual cap.
What received less attention is that the closure is not absolute. The implementing rules preserve limited continued eligibility for students who were already partway through a program when the change took effect.
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Who May Still Be Eligible
Two conditions determine continued eligibility. First, you must have been enrolled in your program of study as of June 30, 2026. Second, a Direct Loan must have been made for that same program of study before July 1, 2026.
Both conditions refer to the same program. Continued eligibility does not transfer if you change programs or begin a new credential, because the grandfathering attaches to the program you were already in rather than to you as a borrower generally.
- ✓You were enrolled in the program as of June 30, 2026
- ✓A Direct Loan was made for that same program before July 1, 2026
- ✓Eligibility runs up to the lesser of three academic years or your expected time to credential
- ✓Eligibility does not carry over to a different program or a new credential
How to Verify Your Own Status
Start with your school's financial aid office. They hold the enrollment records and the disbursement history that determine whether both conditions are met, and they process the certification if you remain eligible.
Independently, log in at studentaid.gov and review your federal loan history. It shows each federal loan in your name, the program it was associated with, the disbursement dates, and the servicer. Bring any discrepancy between that record and your own understanding to your financial aid office before you make borrowing decisions.
What Your Options Are if You Are Not Grandfathered
Graduate students may borrow Direct Unsubsidized Loans up to $20,500 per year, subject to a $100,000 aggregate limit for graduate borrowing. Professional students in fields such as medicine, dentistry, veterinary medicine, and law may borrow up to $50,000 per year, subject to a $200,000 aggregate limit. A separate overall lifetime cap of $257,500 applies across federal loan types, excluding Parent PLUS amounts.
Accept the federal amounts available to you before considering anything else. If your program costs exceed those limits, remaining options include institutional aid and scholarships, employer tuition assistance, an interest-free payment plan through your school, and private education loans.
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Get Notified at Launch →Frequently Asked Questions
Was Grad PLUS eliminated for everyone?
No. Grad PLUS closed to new borrowers for loans made on or after July 1, 2026. Students who were enrolled in their program as of June 30, 2026 and who had a Direct Loan made for that same program before July 1, 2026 may retain limited eligibility to continue borrowing Grad PLUS.
How long does grandfathered Grad PLUS eligibility last?
For students who qualify, the continued eligibility runs for up to the lesser of three academic years or the student's expected remaining time to credential. It is not open-ended, and it applies only to the program the student was already enrolled in.
How do I find out if I am grandfathered?
Ask your school's financial aid office directly, and confirm your federal loan history at studentaid.gov. The determining facts are whether you were enrolled in the program as of June 30, 2026 and whether a Direct Loan was made for that program before July 1, 2026. Your financial aid office has the enrollment and disbursement records needed to confirm both.
What if I am not grandfathered?
Graduate students may borrow Direct Unsubsidized Loans up to $20,500 per year with a $100,000 aggregate limit. Professional students in fields such as medicine, dentistry, and law may borrow up to $50,000 per year with a $200,000 aggregate limit. An overall lifetime cap of $257,500 applies across federal loan types. Costs above those limits require other financing.
LoanAmerica® is not a lender and does not make credit decisions. All loans will be underwritten, approved, and funded by a participating lending partner bank. Loan products are not yet available. Information on this site is for general informational purposes only and does not constitute an offer to lend, a solicitation, or a commitment to provide financing. When available, loans will be subject to credit approval, school eligibility, enrollment verification, and program qualification. Disbursements to institutions run on a weekly cycle; timing is not guaranteed and may vary. This content does not constitute legal, financial, or tax advice. For information about existing federal student loans, contact your servicer or visit studentaid.gov.