The End of Graduate PLUS Loans and What It Means for Students in 2026

The federal Graduate PLUS loan program was discontinued for new borrowers on July 1, 2026, under the One Big Beautiful Bill Act. This change significantly affects how graduate and professional students finance their education, particularly those who previously relied on Graduate PLUS loans to cover tuition gaps, living expenses, and other program costs.

New Federal Borrowing Limits for Graduate Students

With Graduate PLUS loans no longer available, students must now rely solely on standard federal student loans. These loans come with strict annual and lifetime borrowing caps that vary by program type.

Graduate programs:

• Up to $20,500 per year
• Up to $100,000 total

Professional programs such as law, medicine, and MBA programs:

• Up to $50,000 per year
• Up to $200,000 total

For many students, these limits may not fully cover the cost of tuition, books, housing, transportation, and other expenses associated with advanced degrees. As a result, students may need to explore additional funding options to bridge the gap between federal aid and actual program costs.

How This Change Impacts Graduate Borrowers

The discontinuation of Graduate PLUS loans creates several new considerations for students planning to begin or continue graduate studies.

Students may experience:

• Larger funding gaps between federal aid and total program costs
• Increased need for early financial planning during the admissions process
• Greater reliance on private student loans to cover remaining expenses

Graduate and professional programs often carry higher tuition and living costs, making it important for students to understand their full financial picture before committing to a program.

Private Student Loans Through Meriwest

For students who need additional financing, private student loans can help fill the gap left by Graduate PLUS. Meriwest partners with Sallie Mae Bank to offer private student loans designed to support undergraduate, graduate, and professional students when federal aid is not enough.

These loans can be used for tuition, housing, books, supplies, and other education-related expenses. Students can learn more about Meriwest’s private student loan options here.

Borrow Responsibly

Meriwest encourages students and families to start with savings, grants, scholarships, and federal student loans before considering private financing. It is important to evaluate anticipated monthly payments and future earning potential to ensure long-term affordability.

Required Disclosures

These loans are made by Sallie Mae Bank. Meriwest Credit Union is not the creditor for these loans and is compensated by Sallie Mae for the referral of loan customers. For full eligibility details, terms, and disclosures, please visit our Student Loans page.