Beginning July 1, 2026, graduate and professional students enrolling in a new course of study, enrolling in a new school, and/or taking out a Direct Loan for the first time for a program in which they're enrolled in, won't be eligible for a Graduate PLUS Loan.
The One Big Beautiful Bill Act (OBBBA) establishes new loan limits for the Direct PLUS Loan program and will gradually end PLUS loan eligibility for graduate and professional students.
Eligibility Requirements
To be eligible for a Grad PLUS Loan, you must:
- qualify for the limited exception established in the OBBA and outlined below;
- be a graduate or professional student enrolled at least half time at an eligible school in a program leading to a graduate or professional degree or certificate;
- not have an adverse credit history (unless you meet certain additional eligibility requirements); and
- meet the general eligibility requirements for federal student aid.
Limited Exception
Eligible Students: If the borrower is a graduate or professional student, they may be eligible to borrow a Direct PLUS Loan under the limited exception for their expected time to credential only if they:
- were enrolled in a program of study at a school as of June 30, 2026;
- borrowed a Direct Loan for that program of study prior to July 1, 2026;
- are currently enrolled at the same school in the same program of study; and
- haven't had any break in their enrollment in the same program and the same school at any time as of July 1, 2026.
Ineligible Students: Graduate and professional students who don't (or no longer) qualify for this limited exception are not eligible to borrow Direct PLUS Loans.
A graduate student is defined as a student enrolled in a program of study that is above the baccalaureate level and awards a graduate credential (other than a professional degree) upon completion of the program.
A professional student is defined as a student enrolled in a program of study that awards a professional degree upon completion of the program. A professional student may not receive Title IV aid as an undergraduate student for the same period of enrollment.
Interest Rates and Fees
New fixed interest rates are determined each year and apply to all loans first disbursed during the period from July 1 of the current year through June 30 of the following year.
In addition, there is a loan fee on all Direct PLUS Loans, which is a percentage of the loan amount and is proportionately deducted from each loan disbursement.
Learn more about interest rates and fees for federal student loans.
Repayment Options
Repayment plans available to borrowers will depend on a number of factors, including when the borrower received the loan. The borrower's loan servicer can help the borrower understand which plans they are eligible for.
Learn more about repayment options available for PLUS Loans made to students
Loan Amount Limits
The maximum PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance you receive.
Credit Check
A credit check will be completed during the application process of a Grad PLUS Loan. If you have an adverse credit history, then you will receive a Grad PLUS Loan through one of these two options:
Obtain an endorser who does not have an adverse credit history. An endorser is someone like a co-signer, who agrees to pay the Grad PLUS Loan if you do not repay it.
Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history, such as the information causing the adverse credit decision is incorrect or provide a statement that contains an explanation of the extenuating circumstances with documentation that supports your claim.
With either option 1 or 2, the borrower must also complete credit counseling for PLUS loan borrower.
Learn More About Grad Plus Loans
Visit Studentaid.gov
Stay Safe: Avoid Financial Aid Scams
When seeking help with your student loans or financial aid, always make sure you're getting information from trusted, official sources. Scammers often create fake websites or send emails that look legitimate to trick borrowers into sharing personal information or paying for free services.
Be cautious if:
You're asked to pay for help with FAFSA or loan forgiveness.
You receive unsolicited calls or messages promising quick debt relief.
The website doesn't use a .gov or .edu domain.
Still Have Questions?
Still have questions? Contact the Student Loan Ombudsman directly Here.