What Graduate Students Need to Know.
Grad PLUS Loans will no longer be available to new borrowers starting July 1, 2026. If you’re planning for grad or professional school—or helping someone who is—this change may affect how you pay for it.
Here’s what’s changing, what options remain, and how to prepare.
Last Updated: February 2026.
Grad PLUS Loans are federal student loans that previously allowed eligible graduate and professional students to borrow up to the full cost of attendance.
Beginning July 1, 2026, Grad PLUS Loans will no longer be available to new borrowers.
After that date, graduate and professional students will primarily rely on Direct Unsubsidized Loans, which include annual and aggregate borrowing limits.
Students who borrowed federal loans prior to July 1, 2026, may be able to continue under prior rules for a limited time, depending on federal guidance and enrollment status.
After July 1, 2026, federal graduate borrowing will be limited to Direct Unsubsidized Loans.
Federal limits are defined by law and subject to change. For some students, these limits may not fully cover the total education costs.
Understanding federal limits is only part of the picture. Explore how borrowing caps and private loan costs may affect your funding plan.
Planning early can help you reduce funding surprises later.
Federal Direct Loans do not permit cosigners. Private loans often do.
Cosigners should carefully review responsibilities and loan terms before committing.
Here’s how federal Grad PLUS Loans compare to Nelnet Bank Graduate Student Loans :
| Borrowing Limit | Up to cost of attendance (minus other aid*) |
|---|---|
| Credit Review | Full credit review; cosigner options may be available |
| Interest Rate | Fixed or variable; credit-based |
| Origination Fee | No |
| Repayment Options | Multiple options available |
| Borrowing Limit | Program ends July 1, 2026 for new borrowers |
|---|---|
| Credit Review | Federal credit check |
| Interest Rate | Fixed, set annually by Congress |
| Origination Fee | Yes |
| Repayment Options | Standard and income-driven |
Grad PLUS Loans include an origination fee deducted at disbursement. Interest rate is fixed and set annually, regardless of credit profile.
Rates and terms vary based on credit profile. Well-qualified borrowers or those applying with a cosigner may qualify for lower rates.
See Your Rate OptionsPrior to July 1, 2026, Grad PLUS Loans could help cover these differences. After that date, students may need to explore additional funding sources.
For more than 45 years, Nelnet has supported students and schools in education financing. Nelnet Bank builds on that experience with private graduate loans designed to complement—not replace—federal aid.
Reviewing options early can help you move forward with confidence and clarity.
Explore Nelnet Bank Graduate Student Loans
No. Grad PLUS Loans will no longer be available to new borrowers after that date.
Existing Grad PLUS Loans are expected to retain their current terms.
Yes. Grad PLUS applications remain available through Federal Student Aid until the program ends.
Graduate students will rely primarily on Direct Unsubsidized Loans, which have borrowing limits.
You may consider private loan options, such as a Nelnet Bank Graduate Student Loan, to help bridge remaining funding needs.
It depends on rates, fees, and borrower credit profile. Private lenders may offer lower rates for qualified borrowers and many, including Nelnet Bank, do not charge origination fees.
No. For example, federal benefits such as forgiveness and income-driven repayment do not apply. Terms vary by lender.
Graduate students: $20,500 per year; $100,000 lifetime
Professional students: $50,000 per year; $200,000 lifetime
Combined graduate + professional: $200,000 cap
Overall federal lifetime limit: $257,500
Federal policy changes can create uncertainty. Clear answers help.
Nelnet Bank provides transparent private lending options designed to complement federal aid and support your education goals.
If borrowing limits affect your plans, reviewing options early can help you move forward with confidence.
| Degree Level | Min. Loan Amount | Max. Loan Amount | Max. Aggregate* |
|---|---|---|---|
| Undergraduate | $1,000 | $125,000 | $250,000 |
| Grad: Masters, Law/JD | $1,000 | $175,000 | $500,000 |
| Grad: MD, DO, DDS, ED, PhD | $1,000 | $500,000 | $500,000 |
Example scenarios are illustrative only and do not reflect current rate offers.
Rates and terms vary based on credit profile and market conditions.
Private loans do not include federal protections.
Loan products are subject to credit approval.
$20,500 per year