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Temporary Changes to Professional Student Loan Limits

 

Starting the 2026-2027 academic year, major reforms to federal student aid will take effect due to the passing of the One Big Beautiful Bill Act (OBBBA), including the maximum amounts that graduate and professional students are eligible to borrow in Federal Direct Loans based on their program of study.

Beginning July 1, 2026, students pursuing “professional degree programs” are eligible to borrow the Federal Direct Unsubsidized loan for up to $50,000 per year. In addition, the following aggregate and lifetime limits will apply:

  • Aggregate limit of $200,000 between subsidized/unsubsidized loans
  • Lifetime limit of $257,500 (including all previously borrowed federal loans as a graduate or undergraduate student)

The programs considered to be professional degree programs were initially limited by the Department of Education, which resulted in many graduate programs falling under the lower loan limits. However, on June 24, 2026, a federal court in Washington D.C. granted a legal stay of the Department of Education’s definition of professional degree programs, which has the effect of temporarily expanding the number of programs that qualify for the higher annual and aggregate borrowing limits.

Federal loan rules are not finalized due to the litigation and considerable uncertainty remains around how this temporary ruling impacts students.

Below are answers to questions students may have about whether and how the court's stay impacts their ability to borrow federal student loans.

We cannot guess when the court will make a final ruling in the case. Lawsuits can be variable and unpredictable. The university is monitoring the case for updates.

This is a personal decision. The university strongly recommends that you consider your circumstances and available sources of funding for your educational costs and expenses. It is unclear how future borrowing under this temporary stay will affect students' aggregate borrowing limits, meaning that borrowing more now could mean you're eligible to borrow less in the future if the rule changes. Proceed with caution if you decide to borrow the $50,000 Direct Unsubsidized loan for this year and consider how you would fund your education costs if the limit changes in the future.

This is unknown. Schools are required to disburse federal student loans in equal installments over the course of the academic year based on the institution’s academic calendar. Each academic year is a separate eligibility period. The university is unable to predict when or how the court will make its decision, whether there will be any appeals, or whether the Department of Education would require the return of dispersed funds during the academic year. 

This is unknown. It is possible that you would be subject to the lower, graduate student annual limit for any new loans borrowed in the future. It is not clear from the information available whether you would also be subject to the graduate student aggregate limit of $100,000 or the higher $200,000 professional student aggregate limit.

Students are encouraged to review all options available to them, including private educational loans, and consider their personal circumstances. While federal loans typically offer beneficial terms for students, we understand that uncertainty around current loan limits may be complicating your decision. As you consider your long-term budget and financial needs, here are some important things to keep in mind about private loans:

  • Each lender/loan may have different eligibility requirements and terms (repayment periods, interest rates, etc.).
  • Eligibility for private educational loans often depends on a borrower's credit score and application, and/or credit worthiness of the student's co-signer.
  • Private educational loans require a school certification. Certification requests are sent to Arizona via ELM only after the credit check has been approved.
  • The University of Arizona is legally required to ensure that the total amount of private educational loans and other financial aid does not exceed your cost of attendance. If this total exceeds your cost of attendance, your loan may not be fully certified, and a portion of your loan funds may be returned to your lender.

You can choose the lender that best meets your needs. Like federal student loans, private loans must be repaid and typically accrue interest. You have the option to reduce or cancel a federal loan to borrow through a private lender instead.