How much can you borrow for a master's in 2026?

New graduate borrowers can take up to $20,500 a year in federal Direct Unsubsidized Loans, and $100,000 in total for graduate study. Those limits apply to loans made from July 1, 2026, the day Grad PLUS closed to new borrowers. Source · StudentAid.gov, OBBBA definitions

Grad PLUS used to cover the rest of the cost of attendance. Now the gap between $20,500 and the price of the program is yours to fill, so the price of the program matters more than it did a year ago.

Grad PLUS is gone, and the yearly limit stayed at $20,500

The yearly limit for graduate Direct Unsubsidized Loans didn’t change. What changed is everything around it.

Programs the Department treats as professional degrees, like law, medicine and, for now, nursing master’s and doctorates, get a higher yearly limit of $50,000. Source · FSA, GENERAL-26-42 Our nursing master’s loan guide covers that list and the court order behind it.

$20,500 a year covers less than it sounds

A 1.057% origination fee comes off each loan before the school gets it. The loan also carries a fixed 8.07% rate for 2026-27. Source · StudentAid.gov, interest rates

The 10-year figure is a fixed payment for comparison. Loans made from July 1, 2026 repay under RAP, which sets the payment from income, or the Tiered Standard plan. Example: on $70,000 of income with no dependents, RAP comes to about $350 a month, whatever the balance.

Part-time study now lowers the yearly limit

Many working adults earn a master’s part time. From July 1, 2026, a student enrolled less than full time gets a yearly limit cut in direct proportion to their course load. Source · FSA, less-than-full-time FAQ

Example: at half of a full-time load, expect a limit near half of $20,500. Your school applies the exact percentage. The rule covers everyone enrolled less than full time, including students who keep the old limits under the interim exception.

Students already enrolled may keep the old rules for a while

You keep the old limits and Grad PLUS access under an interim exception only if all three of these are true. Source · StudentAid.gov, interim exception

1. You were enrolled by June 30, 2026

   You were enrolled in the program at that school as of June 30, 2026.

2. You borrowed for it before July 1, 2026

   You received at least one Direct Loan for that program before July 1, 2026.

3. You stayed in the same program

   You have stayed enrolled at the same school, in the same program, for the same credential. An approved leave of absence doesn’t break it.

The exception lasts three academic years or the time left in your program, whichever is shorter. Switching programs or schools can end it, so ask your aid office before you change anything.

Fill the gap before you reach for a private loan

Private loans can cover what federal loans don’t, but they come without RAP’s income-based payment. Check these first:

• Your employer. Up to $5,250 a year of employer tuition help is tax-free to you. Source · IRS Publication 5993 Our employer tuition guide shows how to ask.
• Assistantships and fellowships. Many programs waive tuition or pay a stipend for teaching or research work. Ask each program directly.
• A lower-priced program. At $20,500 a year, a program priced near that figure needs no other borrowing. Compare graduates’ earnings before you compare prestige.

Frequently asked questions

Can I still get a Grad PLUS loan?

Only under the interim exception. New graduate borrowers can’t get Grad PLUS for loans made from July 1, 2026.

Do my undergraduate loans count toward the $100,000 limit?

No. The graduate total counts graduate loans only. Undergraduate loans do count toward the $257,500 lifetime limit.

Is a master’s in nursing a graduate or professional program?

For now, the Department treats MSN and DNP programs as professional degrees under a June 24, 2026 court order, with a $50,000 yearly limit. That could change as the case continues.

Your next step is the payback math

The new caps make the program’s price and your expected raise the two numbers that matter. The ROI Calculator puts them side by side for your field.