Graduate Student Loan Limit Rises to $50,000 per Year

A legal challenge has doubled the annual federal borrowing cap for certain graduate students to $50,000. The higher limit takes effect this week under a law enacted earlier. The change applies to graduate and professional students who previously faced lower annual limits on federal Direct PLUS loans.

Officials said the adjustment stems from a court ruling that altered how the annual cap is calculated.

Background on the Change The underlying statute raised the previous annual ceiling, which had been set at $20,500 for most graduate programs. The legal challenge argued that the statutory language supported a higher figure, leading to the revised $50,000 limit.

Students in health professions and other high-cost fields are among those expected to qualify for the increased amount. Federal loan data show roughly 1.7 million graduate students borrow each year. The Education Department has updated its systems to process applications at the new limit beginning this week.