Overview

• Agencies are working on regulations to implement the law’s loan caps, repayment plans and accountability measures ahead of its July 2026 rollout.
• The Grad PLUS program will be eliminated and new annual and lifetime borrowing caps set at $20,500 and $100,000 for graduate students and $50,000 and $200,000 for professional students.
• Existing income-driven repayment plans will be replaced by a standard 10–25-year schedule and a 30-year Repayment Assistance Plan with payments of 1–10% of income.
• Economic hardship and unemployment deferments will end and forbearance will be limited to nine months in any 24-month period; Pell Grants will become secondary for students with full scholarships or grants.
• Programs with median graduate earnings below comparable benchmarks may lose federal loan eligibility, and medical schools warn caps could worsen projected physician shortages.