Trump administration sets 200,000-dollar loan cap for professional degrees in new proposal

 

The United States is preparing for its biggest shake-up of graduate borrowing rules in years, with the Trump administration set to impose new federal loan limits from July 1, 2026. The overhaul aims to redefine how much money graduate and professional students can access, and which programs qualify for the highest borrowing caps, marking a fundamental shift in how Americans finance advanced degrees.

Under the proposal, undergraduate borrowing rules remain unchanged. Dependent undergraduates may continue to receive up to USD 7,500 per year, depending on class level. But the most consequential changes target graduate and professional students who have, until now, relied heavily on Graduate PLUS loans that allowed borrowing up to the full cost of attendance.

The draft rule sets an annual borrowing limit of USD 20,500 for graduate students, with a lifetime cap of USD 100,000. Students enrolled in programs designated as professional degrees would be eligible for USD 50,000 per year, up to a total of USD 200,000. Graduate PLUS loans will be discontinued altogether.

A key element of the reform is how the Department of Education defines a professional degree. According to the proposal, such a degree must show completion of all requirements needed to enter licensed practice in a specific profession and demonstrate skills beyond those expected at the bachelor’s level.

Fields automatically qualifying for higher limits

Using this definition, the department identified 11 fields that automatically qualify for the higher professional-degree caps. These include:

Pharmacy (Doctor of Pharmacy); Dentistry (Doctor of Dental Surgery / Doctor of Dental Medicine); Veterinary medicine (Doctor of Veterinary Medicine); Chiropractic (Doctor of Chiropractic / Doctor of Chiropractic Medicine); Law (Bachelor of Laws / Juris Doctor); Medicine (Doctor of Medicine); Optometry (Doctor of Optometry); Osteopathic medicine (Doctor of Osteopathic Medicine); Podiatry (Doctor of Podiatric Medicine and similar titles); Theology (Master of Divinity / Master of Hebrew Literature); Clinical psychology (Doctor of Psychology / Doctor of Philosophy).

Beyond these, more than 40 additional fields may qualify if they meet standards related to licensure, doctoral pathways, and elevated skill levels. Universities will be responsible for determining whether individual programs meet the criteria, meaning classifications may vary by institution.

Pushback from professional groups

Several national organizations, particularly those representing nursing and social work, have raised concerns about their exclusion from the higher borrowing tier. They argue that their fields require significant graduate-level training yet fall outside the department’s definition. Without access to the larger federal loan caps, they warn students may turn to more expensive private loans, potentially worsening existing workforce shortages.