The U.S. Department of Education’s Federal Direct Loan Program offers loans that must be repaid, with interest, after a student graduates or ceases at least half time enrollment. Students are automatically considered for Federal Direct Loans upon completing the Free Application for Federal Student Aid (FAFSA).

Federal Direct Unsubsidized Loans (Graduate & Professional Students)

• Direct Unsubsidized Loans are not need based and are available to all eligible graduate and professional students.
• Available regardless of financial need.
• Interest begins accruing as soon as funds are disbursed.
• Students may pay interest while enrolled or allow it to accrue and capitalize when repayment begins.

More information is available at the Federal Student Aid Website.

Borrowing Limits (Current and Future Rules)

Until June 30, 2026

• Annual loan limit for graduate/professional students: $20,500 (unsubsidized only).

Beginning July 1, 2026 (New Federal Caps)

Graduate borrowing moves to a hard-cap system due to federal law changes eliminating unlimited yearly borrowing.

Overall Federal Lifetime Borrowing

The federal system will now reference a maximum potential lifetime cap of $257,500 for all federal loans combined (excluding Grad PLUS).

Major Change: Elimination of Graduate PLUS Loans (Grad PLUS)

What is Changing?

• Grad PLUS Loans will no longer be available to new borrowers starting July 1, 2026.
• Grad PLUS previously allowed graduate students to borrow up to the full cost of attendance, minus other aid, without an aggregate cap.

Transition Rules

Students may continue borrowing Grad PLUS through a limited exception if they:

1. Remain continuously enrolled in the same program at the same institution, and
2. Had a Direct Loan (Unsubsidized or Grad PLUS) for that program before July 1, 2026.

This exception lasts up to three years or until program completion/withdrawal.

If You Already Have Grad PLUS Loans

• You may continue borrowing under existing rules until the end of the transition period.
• New borrowers after July 1, 2026 must rely on Direct Unsubsidized Loans up to the new caps and alternative funding for remaining costs.

Repayment & In-School Status

• Repayment on any federal graduate loan may begin at any time.
• Unsubsidized Loans and (until 2026) Grad PLUS Loans offer automatic in school deferment and a six month post enrollment grace period before repayment begins.

If You Need Funding Beyond Federal Caps

With the elimination of Grad PLUS, students who exceed federal unsubsidized limits may need to explore:

• Institutional Loans
• Scholarships and assistantships
• Payment plans
• Private educational loans

Our One Stop Student Services office can help determine the best mix of funding options.

Beginning with the 2026–2027 academic year, the Federal Direct Graduate PLUS Loan program is no longer available to new borrowers.

However, a legacy provision exists for existing Direct Loan borrowers who remain in their current graduate program of study. Provided they continue to meet federal eligibility and credit requirements, graduate students who borrowed a Federal Direct Loan on or before June 30, 2026, for their current degree program, may continue borrowing under the current rules for up to three additional academic years (2026–2027, 2027–2028, and 2028–2029), or until they complete the program, whichever comes first.

The information below applies only to eligible legacy Graduate PLUS borrowers.

Application Process for Eligible Legacy Borrowers

Eligible legacy Graduate PLUS borrowers must submit a Federal Direct Graduate PLUS Loan application by logging into the Federal Student Aid website using their FSA ID.

The Federal Direct Graduate PLUS Loan application is available April 1 of each year.

A credit check is completed by the U.S. Department of Education when the application is submitted

Determining How Much to Borrow

Students are encouraged to borrow only what is necessary, and to apply for the full amount needed to cover both fall and spring semester costs. The Financial Aid Worksheet can help determine the right borrowing amount for the student.

Notes:

• Required loan fees are deducted by the U.S. Department of Education before funds are disbursed. For current interest rates and fees, visit the Federal Student Aid website.
• Graduate PLUS Loan applications submitted without an amount cannot be processed. The Office of Student Financial Aid Services must receive written or emailed authorization specifying the requested amount.

Options if a Credit Check is Denied

If credit is denied, eligible legacy Graduate PLUS borrowers will be presented with four options at the end of the application process:

1. I want to obtain an endorser.
   • This option requires the borrower to find an endorser (i.e. credit-worthy cosigner) to complete the Electronic Endorser Addendum
   • Borrowers must complete PLUS Credit Counseling
   • Borrower must complete Loan Agreement for a PLUS Loan – Master Promissory Note (MPN)
2. I want to provide documentation of extenuating circumstances.
   • This option requires the borrower to Appeal Credit Decision
   • Borrower must complete PLUS Credit Counseling
   • Borrower must complete Loan Agreement for a PLUS Loan – Master Promissory Note (MPN)
3. I do not want to pursue a Direct PLUS Loan at this time.
   • No further action is required.
4. Undecided.
   • No further action is required.

For more information about adverse credit and available options, please see the Federal Student Aid guide: PLUS Loans: What to Do if You're Denied Based on Adverse Credit History

All legacy borrowers are required to complete documents with the U.S. Department of Education before funds can be released to pay the fee bill:

Master Promissory Note (MPN)

Entrance Counseling required for first-time loan borrowers. It will fulfill counseling requirements for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

Graduate PLUS Loan Master Promissory Note (MPN) (upon credit approval)

Loan Debt

StudentAid.gov is a useful resource for students to track their federal student loan debt (any Private Education Loans they may have borrowed would not be included). On this website, students can conduct a Financial Aid Review, view their lender information, and determine who currently services each of their federal student loans.

To stay informed about their federal loans, students are encouraged to review their award notices and disclosure statements received from their Direct Loan Servicers. They’re a helpful way to keep track of important loan details throughout the year.

Repayment of Loans

When a student begins attending less than half-time, plans to graduate, or stops attending the University, they must complete Student Loan Exit Counseling. The purpose is to ensure they understand their student loan obligations and are prepared for repayment.

Students can select from available payment plan options for Federal Direct Loans. Keep in mind that there are no prepayment penalties on federal student loans, giving students the flexibility to make additional payments if desired.

Beginning July 1, 2026, new federal student loan borrowers—and existing borrowers who take out any new federal loan after this date—will have only two repayment options: the new Standard Repayment Plan or the Repayment Assistance Plan (RAP), which replaces all existing income driven repayment plans for these borrowers. In contrast, legacy borrowers who do not take out any new loans after July 1, 2026 may remain on their current repayment plans, including existing income driven plans, standard, graduated, or extended repayment arrangements. Please visit the Federal Student Aid website for more information.

More information on managing student loan payments, including what to do if an individual is having trouble making payments, can be found in our U.S. Department of Education's Student Financial Aid site.

To learn more about understanding the options and responsibilities for repayment of loans, please visit the Federal Student Aid website.

For an estimate of monthly payments, please visit the Loan Repayment Simulator.

Private Education Loans are non-federal loans made by private lenders. More information about these loans is available Private Educational Loans page.