Overview

• Beginning in July 2026, the law eliminates the Grad PLUS program and caps borrowing for graduate students at $20,500 per year and $100,000 over a lifetime and for professional students at $50,000 per year and $200,000 total.
• Parent PLUS loans will be limited from July 2026 to $20,000 per year with a $65,000 lifetime maximum.
• Income-driven repayment plans are replaced by a Standard Repayment Plan with 10–25 year terms and a Repayment Assistance Plan that sets payments at 1–10% of income with forgiveness after 30 years.
• Pell Grant eligibility will exclude students with full-cost scholarships while adding certain vocational and job-training programs, and K–12 529 savings plans will now cover standardized testing fees and tutoring.
• Medical school groups and workforce organizations warn the caps could worsen looming physician shortages and block low-income students from advanced degrees.