The Trump administration has announced new limits on federal student loans that will take effect from July 1, 2026. Undergraduate students will continue to have the current annual limit of $7,500 for dependent students, depending on their year of study. However, graduate and professional students will face stricter borrowing limits. The rule isn’t final yet and may still undergo changes before implementation.
Trump admin to limit Federal student loans from 2026
Under the new proposed limits, graduate students will be allowed to borrow up to $20,500 per year, with a total cap of $100,000 for their entire program, NBC reported. Professional students who have opted for fields requiring advanced qualifications will face a limit of $50,000 per year, with a maximum of $200,000 for their program. The Graduate PLUS loans, which previously allowed students to borrow up to the total cost of attendance, will no longer be available.
Which programs qualify as professional?
According to the Department of Education, a professional degree is one that goes beyond a bachelor’s degree and equips students with specialised skills for a specific profession. Eleven fields have been automatically classified as professional programs under the new rules.
These include pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology.
| Professional area | Degree names covered |
|---|---|
| Pharmacy | Pharm.D. (Doctor of Pharmacy) |
| Dentistry | D.D.S. / D.M.D. (Dental Surgery / Dental Medicine) |
| Veterinary Science | D.V.M. (Doctor of Veterinary Medicine) |
| Chiropractic Studies | D.C. / D.C.M. (Chiropractic and Chiropractic Medicine) |
| Law | J.D. or L.L.B. (Juris Doctor / Bachelor of Laws) |
| Human Medicine | M.D. (Doctor of Medicine) |
| Optometry | O.D. (Doctor of Optometry) |
| Osteopathic Medicine | D.O. (Doctor of Osteopathic Medicine) |
| Podiatric Medicine | D.P.M. and related podiatry titles |
| Theology / Ministry | M.Div. / M.H.L. (Master of Divinity / Master of Hebrew Lit.) |
| Clinical Psychology | Psy.D. / Ph.D. (in Clinical Psychology) |
According to the department, in addition, programs in at least 44 other fields could qualify if they meet certain criteria. This may include requirement of a doctoral-level degree and professional licensure. Universities are responsible for clarifying whether their programs meet these professional degree requirements.
Do F1 visa holders qualify?
F1 visa holders, are not eligible for federal student loans. These rules apply only to US citizens and eligible noncitizens. However, the changes may indirectly affect F1 students because universities could adjust tuition, scholarships, and graduate program capacities in response to the new borrowing limits.
What Graduate students can do if their program loses professional-degree status
For all whose graduate programs don’t make the Department of Education’s professional-degree list, the rule isn’t final yet. The department still has to submit a notice, accept feedback from students and other stakeholders, update the proposal, and publish it again.
For students who already have federal loans, repayment will continue as usual. However, it’s a good idea to check with your academic advisors or registrar’s office to confirm your program’s loan eligibility and find out whether you will still qualify for loans after July 1, 2026.
If your program doesn’t qualify for federal loans, or if you need to borrow more than your new limit allows, there are other ways to fund your education. One option is to look for teaching assistantships or research positions. Students can discuss it with the faculty members and explore ways to contribute to research projects and earn financial support.
Another way is private scholarships and fellowships. Many organisations offer funding for students, nontraditional students, healthcare students, and women. Private loans are also an option, though they come with higher risks than federal loans. For those with low or middle incomes, or limited credit history, a cosigner may be required to secure a private loan.
US professional groups voice concerns
The American Association of Colleges of Nursing has voiced concerns over nursing programs being excluded from the professional category. They warn that this could worsen staffing shortages in the healthcare sector. Similarly, the National Association of Social Workers in Florida criticised the declassification of Master’s and Doctorate programs in social work,
Meanwhile, the Department of Education has clarified that the professional degree definition is only used to determine loan limits and does not judge the importance of any field. The goal of the new rules is to prevent students from taking on more debt than they can handle and to encourage institutions to manage tuition costs.
