Grad PLUS Loans (Direct PLUS for Graduate Students)
Federal Direct PLUS loans for graduate and professional students — eliminated for new borrowers on July 1, 2026. New grad borrowing is unsubsidized-only with capped limits.
Grad PLUS Loans are federal loans available to graduate and professional students who need to borrow additional funds to pay for education costs not covered by other financial aid. These loans are offered through the Department of Education's Direct Loan program and are designed for students pursuing advanced degrees. Borrowers should be aware that eligibility requirements, interest rates, fees, and borrowing limits are subject to change. For current and complete information about Grad PLUS Loans, including specific terms and conditions, students should visit studentaid.gov.
Who it's for
Graduate or professional students enrolled at least half-time in an eligible program. You must not have an adverse credit history (or you can still qualify with an endorser or by documenting extenuating circumstances). IMPORTANT: Grad PLUS Loans are eliminated for new borrowers effective July 1, 2026 (see Law Change notice below).
How the interest rate is set
Direct PLUS Loans carry a fixed interest rate set by Congress each year for loans first disbursed on or after July 1, fixed for the life of the loan. PLUS rates are typically higher than other Direct Loan rates. Check studentaid.gov for the current rate.
How much you can borrow
For loans first disbursed before July 1, 2026: there is no fixed annual dollar cap — a student can borrow up to cost of attendance minus other aid. For new graduate borrowing on or after July 1, 2026: Grad PLUS is eliminated and replaced by higher Direct Unsubsidized Loan limits. See the Law Change notice below.
Key terms at a glance
| Loan type | Federal (Direct PLUS Loan) |
| For | Graduate & professional students (see July 1, 2026 change below) |
| Credit check | Required (adverse credit history can disqualify you) |
| Interest rate | Fixed; set by Congress each year (typically higher than other Direct Loans) |
| Borrowing limit | Up to cost of attendance minus other aid (pre-July 2026); replaced by capped unsubsidized limits July 1, 2026 |
| Law change effective | July 1, 2026 — Grad PLUS eliminated for new borrowers |
Pros and cons
Potential advantages
- For pre-July-2026 borrowers: could cover the full cost of attendance (minus other aid) when other federal loans weren't enough.
- Fixed interest rate and access to federal repayment protections.
- No cosigner required — though an endorser can help if you have adverse credit.
Things to watch
- Eliminated for new borrowers as of July 1, 2026 — new graduate students are limited to Direct Unsubsidized Loans with annual and aggregate caps ($20,500/yr and $100,000 for most grad programs; $50,000/yr and $200,000 for professional programs).
- Requires a credit check; an adverse credit history can disqualify you (unless you get an endorser or document extenuating circumstances).
- Interest rates and loan fees are generally higher than Direct Subsidized/Unsubsidized Loans.
- Interest accrues from disbursement; there is no subsidized version.
Sources: Federal Student Aid — PLUS Loans; Federal Student Aid — One Big Beautiful Bill Act Updates; CFPB — Student Loans. Federal loan details follow U.S. Federal Student Aid (studentaid.gov); always confirm current rates and limits there.
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Compare student loan & refinance options →Frequently asked questions
Who can still get a Grad PLUS Loan after July 1, 2026?
Only borrowers who had a Grad PLUS disbursement before July 1, 2026, and who remain continuously enrolled in the same program at the same school. Those borrowers may continue for up to three more years or until program completion, whichever comes first. New graduate borrowers after July 1, 2026, cannot get a Grad PLUS Loan. See studentaid.gov for official guidance as ED publishes it.
What replaced Grad PLUS for new graduate borrowers?
Starting July 1, 2026, new graduate borrowing is through Direct Unsubsidized Loans only, with annual and aggregate caps set by the One Big Beautiful Bill Act: $20,500/year and $100,000 aggregate for most graduate programs; $50,000/year and $200,000 aggregate for professional programs (e.g., medicine, law). The Department of Education is expected to clarify the definition of 'professional' programs — check studentaid.gov.
Should I use my Direct Unsubsidized Loan eligibility first?
For borrowers still eligible for Grad PLUS (pre-July-2026 grandfathered borrowers), Federal Student Aid generally recommends using Direct Unsubsidized Loan eligibility first because PLUS loans typically have higher interest rates and loan fees.