Page posted July 6, 2026
H.R. 1, The Working Families Tax Cuts Act – also known as the “One Big Beautiful Bill” – was passed by Congress and signed into law by President Trump in July 2025. The law includes changes to federal student loan programs. These limits and other changes took effect July 1, 2026.
In addition to a new aggregate lifetime limit of $257,500 for all federal student loans taken out by an individual, there are also new annual and lifetime limits on loans to graduate students and professional students. There are also new limits on loans to parents via the Parent PLUS Loan program.
Graduate students
- Annual limit: $20,500
- Lifetime limit: $100,000
Professional students
- Annual limit: $50,000
- Lifetime limit: $200,000
Parent PLUS Loan for parents of undergraduate students
- Annual Limit: $20,000 per student, per year
- Aggregate Limit: $65,000 per student total
The Federal Direct Graduate PLUS Loan program has been eliminated for most new borrowers.
The UW Office of Student Financial Aid has posted a summary of changes relevant to UW students and families.
Classification of professional degree programs
After a comment period, on May 1, 2026, the U.S. Department of Education issued a regulation implementing the loan limits by setting out what degree programs are considered “professional” and therefore eligible for the higher limits. Only 11 degrees were considered professional programs for the purposes of these new limits: clinical psychology, dentistry, chiropractic, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology and veterinary medicine.
On May 19, 2026, a coalition of states, including Washington, filed suit against the department in federal court in Maryland challenging the new regulation. Another lawsuit challenging the regulation was filed in the U.S. District Court for the District of Columbia by a group of trade associations, including the American Association of Nurse Practitioners and the PA Education Association.
On June 24, 2026, the judge in the District of Columbia issued an order staying implementation of the new regulation, ruling that Congress had not given the department discretion to narrow the definition of professional degree programs. On June 29, 2026, the Department of Education updated its list of professional degree programs to use the statutory definition of professional degrees, which added 18 programs, including several nursing and health-related degree programs. The department also announced its intention to appeal the ruling.