OBBBA Update

    Grad PLUS Loans Are Eliminated in 2026, Here's What Graduate Students Do Now

    The One Big Beautiful Bill Act eliminates the Grad PLUS program effective July 2026. Over 440,000 graduate students will need alternative financing. Here's what you need to know.

    What's Happening to Grad PLUS?

    The One Big Beautiful Bill Act (OBBBA), signed in 2025, eliminates the Graduate PLUS loan program starting with the 2026-2027 academic year. This means graduate and professional students will no longer have access to unlimited federal borrowing.

    For students in medical school, law school, MBA programs, and other graduate programs, this creates an immediate funding gap that must be filled by private lending, institutional aid, or personal savings.

    Who Is Affected?

    440K+

    Students Affected

    $35,000

    Avg. Funding Gap

    All Grad

    Programs Impacted

    Key Changes Under the OBBBA

    • Grad PLUS elimination: No more unlimited federal borrowing for graduate students.

    • New undergrad limits: Annual caps reduced, increasing the need for supplemental funding.

    • Parent PLUS cap: Now limited to $20,000 per year, creating additional gaps for families.

    • Timeline: Changes took effect July 1, 2026 for the 2026-2027 academic year.

    What Should Graduate Students Do Now?

    The change is now in effect, so act early. Explore private graduate loan options, talk to your financial aid office, and consider LoanAmerica's Graduate & Professional Loan, designed specifically to replace Grad PLUS with competitive rates and fast funding.

    Schools should also prepare by partnering with private lenders who can serve their student population when federal aid falls short.

    Comparison

    FeatureLoanAmericaGrad PLUS (Pre-2026)
    AvailabilityAvailable now & post-2026Eliminated July 2026
    Max Amount$100,000Cost of attendance
    Credit CheckCredential Score + FICOAdverse credit history check
    Interest RateCompetitive fixed8.05% (2024-25)
    Funding Speed72 hours6-8 weeks
    Origination FeeNone4.228%

    LoanAmerica Products for You

    Graduate & Professional Loan

    Up to $100,000

    Replaces eliminated Grad PLUS for graduate and professional students, including living costs during clinical training.

    Learn More

    GapBridge Tuition Loan

    Up to $35,000

    Covers tuition gaps after federal aid, including required tools and equipment for hands-on programs.

    Learn More

    Frequently Asked Questions

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    Whether you're a school or a student, LoanAmerica has a financing solution built for you.