The Department of Education on Thursday finalized the student loan overhaul introduced in President Donald Trump's "big beautiful bill," also known as the Working Families Tax Cuts Act, which was signed into law in July.
The final regulations include new borrowing limits on federal student loans for graduate and professional degrees beginning with loans taken out July 1, 2026.
Students will be able to borrow up to $20,500 a year and up to $100,000 in total for graduate degree programs, while students in professional programs, such as medicine and law, can borrow up to $50,000 a year and $200,000 over the course of their studies. Previously, loans for graduate and professional programs had an annual limit of $20,500 and a lifetime limit of $138,500.
The regulations also eliminate the graduate PLUS loan program, which previously allowed students to borrow up to their entire cost of attendance, regardless of degree program.
"This final rule will help ensure students can access higher education without racking up excessive loan debt, offer repayment options that better serve borrowers, and force institutions to reduce costs," Under Secretary of Education Nicholas Kent said in a press release.
