Federal Loan Caps for Graduate Students Begin July 1

Federal borrowing limits for graduate students take effect July 1 under legislation signed last year. The One Big Beautiful Bill Act sets a lifetime cap of $100,000 and an annual cap of $20,500 for most graduate programs. Students in medicine, dentistry, pharmacy, and chiropractic programs may borrow up to $200,000 total and no more than $50,000 per year.

The median cost of attending a public medical school is nearly $300,000 over four years, while private medical school exceeds $400,000, according to the Association of American Medical Colleges. On June 24, a federal judge temporarily blocked the Department of Education from enforcing the law’s definition of a professional degree.

On Monday, the department issued guidance stating that some physician-assistant, physical-therapy, and nursing students will at least temporarily qualify for the higher professional-degree limits.

In May, 25 states and the District of Columbia filed a federal lawsuit against the Department of Education. In June, the American Academy of Physician Associates and the PA Education Association filed a separate suit. Current interest rates for federal graduate loans are about 8-9%.

Physician assistants typically start their careers with an average debt of $112,000. Olivia Trull, 24, is scheduled to begin a 28-month physician-assistant program at Northwest University in Kirkland, Washington, this summer that costs $137,000. Jasmine Vasquez, 26, has deferred enrollment in a physician-assistant program at South College in Atlanta until 2027.