Grad PLUS Loan Discontinued 2026: What Trump's Policy Means for Grad Students

# Grad PLUS Loan Discontinued 2026: What Trump's Policy Means for Grad Students

> **Quick answer:** The Trump administration's One Big Beautiful Bill Act eliminates Grad PLUS loans for all new borrowers after July 1, 2026. Graduate students will face annual borrowing caps of $20,500 (most programs) or $50,000 (professional programs like medicine and law). Students who borrowed a Grad PLUS loan before the July 1 deadline are grandfathered in for up to three years. Everyone else must bridge the gap with private loans, assistantships, or employer tuition benefits.

The Grad PLUS loan discontinued 2026 Trump policy is one of the most significant changes to graduate school financing in a generation. If you are currently enrolled in or planning to start a graduate or professional program, the window to plan your funding strategy is closing fast — and the stakes are especially high for medical, dental, and law students whose program costs can exceed $300,000.

> **This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.**

## What the Law Actually Says: The One Big Beautiful Bill Act

President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025. Buried inside its higher education provisions is the elimination of the Federal Direct PLUS Loan program for graduate and professional students — commonly called the Grad PLUS loan.