Online master's degrees under $20,500 a year (2026)

New graduate students can borrow up to $20,500 a year in federal Direct Unsubsidized Loans, the limit since July 1, 2026, when Grad PLUS closed to new borrowers. Source · StudentAid.gov To keep tuition inside that limit at 18 credits a year, a program can cost no more than $1,138 a credit.

Some online master’s programs come in well under that. Here’s the math, and five real 2026-27 prices that clear it.

The price per credit that fits the limit

Divide the loan limit by the credits you’ll take in a year. That’s the most a credit can cost before tuition alone uses up the loan.

The loan is also cut by its origination fee of 1.057%, so a full $20,500 loan sends about $20,283 to your school. Graduate loans for 2026-27 carry a 8.07% fixed rate.

Five online programs under the limit

Western Governors University (WGU) prices apply to six-month terms starting on or after October 1, 2026, and you can finish as many courses as you can within a term. Source · WGU

Southern New Hampshire University (SNHU) charges $659 a credit for graduate programs in 2026-27. Source · SNHU The Illinois iMBA lists $27,288 in total tuition and fees, paid as you go over 24 to 60 months. Source · Gies College of Business

The 18-credit and two-year figures are examples. Your yearly cost depends on how many courses you take.

Room left over pays for books and living costs

Your federal loan can’t exceed your school’s cost of attendance, which includes books and living costs, not just tuition. A cheaper program leaves part of the $20,500 for those costs, or lets you borrow less.

Four checks before you pick a program

1. Get the total program cost

   Multiply the per-credit or per-term price by what the degree requires, then add fees.

2. Check accreditation

   Make sure the school is accredited by an agency the Education Department recognizes. Our quick legitimacy check shows how.

3. Ask your employer

   Employers can pay up to $5,250 a year tax-free, which can cover part of a low-cost program. See our employer tuition guide.

4. Check graduates' earnings

   Look up the program on the College Scorecard and compare graduates’ earnings.

Frequently asked questions

Can I still borrow more than $20,500 a year?

Not in most master’s programs, as a new borrower. Professional students, such as in medicine or law, have a $50,000 yearly limit. Source · StudentAid.gov

For now, under a June 24, 2026 court order, the Department also treats programs awarding the Master of Science in Nursing (MSN) or a physician assistant degree (MSPA, PA) as professional, and that list may change as the case proceeds. Source · FSA, GENERAL-26-42

Students already enrolled with a loan before July 1, 2026 may keep the old limits for a while under an interim exception. For the MSNMSN, Master of Science in Nursing. A graduate nursing degree, the usual route to advanced roles such as nurse practitioner. rules, see our nursing master’s loan limits guide.

If your program costs more, the Grad Loan Gap Check shows the gap year by year; ask your employer about tuition help first.

Do these prices include fees?

No. The table shows tuition only. Ask each school for the full cost of attendance.

Your next step is the payback math

A low price makes a master’s easier to fund. The ROI calculator shows whether it pays back for you, using BLSBLS, Bureau of Labor Statistics. The U.S. Department of Labor agency that publishes pay and job outlook figures for each occupation. pay for the job you want.