The U.S. Department of Education recently announced updates to how graduate programs are classified for federal student loan purposes. These changes stem from the elimination of the Grad PLUS loan program and the introduction of extended borrowing limits under the One Big Beautiful Bill (OBBB). As a result, the Department has clarified which degrees qualify as “professional” versus “non-professional”—a distinction that now directly impacts how much students can borrow under the federal Direct Loan program.
Why the Change?
Previously, graduate and professional students could borrow up to the annual federal direct loan limit and then use Grad PLUS loans to cover any remaining costs. With Grad PLUS eliminated, Congress introduced new borrowing caps, making it necessary to define which programs qualify for higher limits.
What Are the New Loan Limits?
Under the new rules:
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Professional Programs
Annual Limit: $50,000
Lifetime Cap: $200,000
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Non-Professional Graduate Programs
Annual Limit: $20,500
Lifetime Cap: $100,000
What Counts as a “Professional” Program?
According to the Department of Education, professional programs typically:
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Require professional licensure to practice.
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Involve advanced skill and training beyond a bachelor’s degree.
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Are often doctoral-level programs with higher costs and longer durations.
The Department's current list of professional fields includes:
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Medicine
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Pharmacy
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Dentistry
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Optometry
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Law
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Veterinary Medicine
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Osteopathic Medicine
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Podiatry
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Chiropractic
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Theology
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Clinical Psychology
Impact on Non-Professional Graduate Students
Students in fields outside this list—such as nursing, architecture, accounting, and education—fall under the lower borrowing limits. The Department of Education notes that most programs in these areas should remain affordable within the new caps.
One notable concern: graduate nursing programs were not included in the professional designation. However, the Department of Education data shows that 95% of graduate nursing students borrow below the new annual limit, meaning the impact should be minimal.
What Happens Next?
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Implementation Date: July 1, 2026
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The Department of Education is still finalizing regulations.
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Private lenders are evaluating how to support students who may need additional funding beyond federal limits.
At EdAssist, we’ll continue monitoring developments and share updates as they become available.
Key Takeaways
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Professional programs now have significantly higher borrowing limits than non-professional programs.
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Grad PLUS loans are gone—students must plan to borrow within new limits or explore private loan options.
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Most graduate students will not see major changes, but high-cost programs outside the professional designation may need alternative funding strategies.
