Updated 9/12/25
Graduate PLUS Loans: What's Changing?
The Grad PLUS loan program will be eliminated for new borrowers beginning July 1, 2026. This change is part of the "One Big Beautiful Bill" signed into law in July 2025, which overhauls federal student loan programs.
Legacy Provision for Current Direct Loan Borrowers:
Students who have previously borrowed a Direct Loan (Unsubsidized or Graduate PLUS) before July 1, 2026, for their current degree program can continue borrowing under the current loan programs and limits for up to three additional academic years or until program completion, whichever comes first. Eligibility is contingent upon remaining enrolled in the same program.
Professional Annual and Aggregate Loan Limits - Effective July 1, 2026:
Applies to new federal loan borrowers:
- Annual professional student loan limit: $50,000*
- Total aggregate for professional student loans: $200,000
- Lifetime aggregate for ALL federal loans - $257,500
- This applies to all federal student loans, including Undergraduate, Graduate, and Professional Degree loans
*Current Subsidized/Unsubsidized loan limits for medical students are:
- Annual: MS1 $42,722; MS2 $40,500; MS3 $47,167; MS4 $44,944
- Aggregate: $224,000; including Undergraduate, Graduate, and Professional Degree loans)
- Grad PLUS loans do not have an aggregate limit
Take Action: Protect Federal Student Aid and Strengthen the Future Physician Workforce
AAMC Action urges lawmakers to protect and strengthen federal student aid programs — like the Graduate PLUS loan and Public Service Loan Forgiveness (PSLF) — to ensure that medical school is accessible for students from all backgrounds. At a time when the U.S. faces a continuing physician shortage, federal student aid programs are essential to building a well-trained health care workforce that can serve all patients and communities nationwide.
The most effective advocacy is when constituents reach out to their local lawmakers, while the AAMC tells the story at the national level. You can help our efforts and be an advocate by sending a message to your members of Congress TODAY, urging their support for critical federal student aid programs that make medical school possible for almost half of all medical students.
New Interest Rates for Federal Direct Loans
If you borrow a federal student loan—either an Unsubsidized or Graduate PLUS Loan—you’ll be required to repay it with interest. The interest rate is fixed and based on the date your loan is first disbursed.
For loans first disbursed between July 1, 2025, and June 30, 2026:
Direct Unsubsidized Loan: 7.94% fixed interest rate
Direct Graduate PLUS Loan: 8.94% fixed interest rate
To view interest rates from previous years, visit StudentAid.gov.