Financial Aid Office

Graduate Degree Program loan limits

Students enrolled in graduate degree programs may borrow:

• Up to $20,500 per year in Federal Direct Unsubsidized Loans
• Up to $100,000 total (lifetime) in graduate-level federal loans
• Up to $257,500 aggregate lifetime cap (all federal loans, including undergraduate, excluding Parent PLUS loans)

Examples of graduate programs offered at Jefferson include:

• Master's degrees (e.g., MS, MBA, MPH, Graduate Certificates)
• Research and applied doctorates (e.g., PhD)
• Doctoral programs that do not meet the federal definition of a professional degree

Professional Degree Program loan limits

Students enrolled in professional degree programs may borrow:

• Up to $50,000 per year in Federal Direct Unsubsidized Loans
• Up to $200,000 total (lifetime) in graduate-level federal loans
• Up to $257,500 lifetime cap (all federal loans, including undergraduate, excluding Parent PLUS loans)

Examples of programs offered at Jefferson include:

• Medicine MD
• PharmD

There are no changes to the undergraduate federal direct loan limits.

Federal law distinguishes between graduate and professional degree programs for loan borrowing purposes. These federal designations apply only to federal direct student loan eligibility and do not reflect Jefferson’s academic classification of programs or the professional standing of any discipline.

As currently defined by the U.S. Department of Education (ED), professional degrees include the following academic programs.

Thomas Jefferson University programs:

• Pharmacy PharmD
• Medicine MD

Other professional programs not offered at Thomas Jefferson University:

• Dentistry DDS or DMD
• Veterinary Medicine DVM
• Chiropractic DC or DCM
• Law LLB or JD
• Medicine MD
• Optometry OD
• Osteopathic Medicine DO
• Podiatry DPM DP or PodD
• Clinical Psychology PsyD or PhD
• Theology MDiv or MHL 

Beginning with the 2026-27 academic year, schools must prorate annual loan eligibility based on enrollment status. If you are less than full‑time, your annual loan availability will be reduced based on your percentage of full-time enrollment as defined by your program of study. Undergraduate students are considered full-time at 12 credits/semester. Graduate students should refer to the definition of full-time for their academic program.

Note: Undergraduate Loan Rules are Not Changing

• Undergraduate borrowing limits will remain the same, but are subject to part-time loan proration
• Pell Grant eligibility may change for students whose families have a low AGI but a high SAI due to other information provided on the FAFSA
• Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit for newly enrolled undergraduate students beginning July 1, 2026
• Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program, whichever comes first

New borrowers (after July 1, 2026) will be assigned to the new standard repayment plan. They may select the new income-based repayment plan, RAP.

Repayment Assistance Plan (RAP):

• $10 minimum monthly payment for all borrowers
• Payments based on adjusted gross income and family size
• Ends access to certain economic hardship/unemployment deferments for future loans

Current borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans, and may also opt in to the new RAP. Current borrowers may also switch between, enter or remain on existing IDR plans until July 1, 2028.

Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a different repayment plan (current IBR, current standard plans, or RAP) by July 1, 2028. If no selection is made by that date, they will be moved into RAP automatically.

Congress passed new federal budgeting legislation in July 2025 that restructures how graduate and professional students may borrow federal student loans. The changes are intended to limit total borrowing, reduce long‑term student debt, and align loan availability more closely with program type and expected earnings.

The changes take effect July 1, 2026, beginning with the 2026–2027 academic year. Financial aid for 2025–2026 is not affected.

• New students starting their academic programs on or after July 1, 2026
• Some currently enrolled students, depending on their enrollment and borrowing history

Beginning July 1, 2026, the Federal Direct Graduate PLUS Loan will no longer be available to new borrowers. Grad PLUS loans previously allowed students to borrow up to the full cost of attendance.

No. Federal Direct Subsidized/Unsubsidized Loans will continue to be available for undergraduate and graduate students, but annual and lifetime borrowing limits will apply.

Some programs that require licensure (such as nursing, physical therapy, counseling, physician assistant studies, etc.) are classified by the Department of Education as graduate degrees rather than professional degrees based on statutory and regulatory criteria. Many institutions and associations are advocating for changes, but classifications are set at the federal level.

Yes. Starting in 2026–27, students enrolled less than full-time will have annual federal loan eligibility reduced based on the enrolled number of credits and the percentage of a full-time credit load. 

Graduate student Direct Unsubsidized Loan annual limit is unchanged at $20,500. The new aggregate limit of $100,000 does not include undergraduate loans. The previous aggregate limit was $138,500, including undergraduate loans.

Possibly. You may qualify to continue borrowing under current rules (including Grad PLUS) if you:

• Borrowed a federal loan for your current program before July 1, 2026
• Remain enrolled in the same credentialed program

Note: For students who were enrolled in a program of study as of June 30, 2026, borrowing any type of Direct Loan for that program at that institution prior to July 1, 2026, qualifies the student for the graduate PLUS Loan legacy provision (interim exception) under the One Big Beautiful Bill Act.

Eligible students may continue borrowing under current rules for up to three additional years or until program completion, whichever comes first.

Students may lose legacy eligibility if they:

• Change degree programs
• Move to a different institution
• Take certain breaks in enrollment (e.g. Leave of Absence)
• Start a new credential after July 1, 2026

Consult the Financial Aid Office before making program changes to better understand financial impact.

PSLF remains available under current federal law for qualifying federal loans and eligible employment. However, private loans are not eligible for PSLF.