What’s Changing—and When

Beginning July 1, 2026, Federal Grad PLUS Loans will no longer be available to new borrowers.

Instead, graduate and professional students will rely on Direct Unsubsidized Loans, which have annual and lifetime borrowing limits. For some students, those limits may not cover the full cost of attendance.

We’re committed to sharing clear information as updates develop. For the latest official guidance, visit the StudentAid.gov.

As federal programs evolve, many students and cosigners are exploring flexible, credit‑based private loans to help close funding gaps. Lenders like Nelnet Bank offer options designed to complement—not replace—federal aid.

What Are Grad PLUS Loans?

Grad PLUS Loans have historically helped graduate and professional students cover education costs not met by other federal aid.

Until the program ends for new borrowers, Grad PLUS Loans generally include:

  • Eligibility: Graduate or professional students enrolled at least half-time.
  • Borrowing Limit: Up to the cost of attendance minus other aid.
  • Credit Review: Basic federal credit check.
  • Interest & Fees: Fixed rate set annually; an origination fee applies.
  • Repayment: Typically begins after graduation, with income-driven plans available.

These features have supported borrowers for years, but upcoming changes mean students may need to plan differently.

If you need additional funding, private loans—such as Nelnet Bank Graduate Student Loans—may help bridge remaining costs without hidden fees.

Why the Grad PLUS Program Is Ending

The U.S. Department of Education has announced the end of the Grad PLUS Loan program for new borrowers starting July 1, 2026.

The goal is to place clearer limits on graduate borrowing and encourage more predictable repayment outcomes. While final rules are still being implemented, the outcome is clear: federal graduate borrowing will be capped.

As a result, some students and cosigners may need to explore additional funding options to fully cover graduate education costs.

For official updates, visit the FSA Announcements & Events page.

How Federal and Private Graduate Loans Compare

As federal borrowing changes, some students consider private graduate loans to help close funding gaps. Here’s a high-level comparison:

Feature Federal Grad PLUS Loan (through 6/30/26) Private Graduate Loan (example: Nelnet Bank)
Eligibility Graduate/professional students Graduate/professional students; U.S. citizens or permanent residents
Credit Review Basic federal check Full credit review; cosigner may help
Borrowing Limit Cost of attendance minus aid Up to the full cost of attendance
Interest Rate Fixed, set annually Fixed or variable; based on credit
Origination Fee Yes None
Repayment Options Federal plans available Multiple plans; deferment available while in school

Federal terms change annually. Visit StudentAid.gov for the latest information.

Key takeaway: Private graduate loans are not a replacement for federal aid, but they may help some students continue their education when federal limits fall short.

Explore Graduate Student Loans through Nelnet Bank

Planning Ahead: Steps Students and Cosigners Can Take

Graduate financing will look different in the coming years, but early planning helps reduce uncertainty. Consider these steps:

  1. Connect with your financial aid office to understand how your program may be affected.
  2. Estimate total costs and identify potential funding gaps.
  3. Compare federal and private loan options to understand long-term implications.
  4. Follow Nelnet and FSA updates for official policy changes.

If you explore private options, prioritize lenders who value transparency, clear repayment terms, and borrower support.

Frequently Asked Questions

  • No. Grad PLUS Loans will no longer be available to new borrowers starting July 1, 2026.

  • Existing Grad PLUS Loans will remain in place under their current terms. However, repayment plan availability is changing.

    Borrowers currently enrolled in the SAVE plan will need to transition to another eligible repayment plan. Borrowers in Income-Contingent Repayment (ICR) or Pay As You Earn (PAYE) may remain in those plans until July 1, 2028. After that date, those plans will be discontinued, and borrowers will need to select a different eligible repayment option.

  • Yes. Applications remain open on StudentAid.gov until the program ends.

  • You can find the latest federal guidance and news on the FSA Announcements & Events page.

  • Some students explore private graduate loans to help fill remaining gaps. Comparing options early can make planning easier.

  • Private loans do not include federal forgiveness or income-driven repayment. However, some—like Nelnet Bank’s—offer in-school deferment, autopay discounts, and clear, upfront terms.

For more educational resources about graduate financing, you can visit NelnetBank.com.

Nelnet: A Trusted Resource Through Change

For more than 45 years, Nelnet has supported students and families throughout their education journey. As a federal loan servicer, we’re committed to clarity, accuracy, and helping borrowers understand their options.

Education opens doors—and Nelnet is here to help keep them open through trusted federal servicing and flexible private loan solutions.