Student Loan Calculator 2026 — New Limits

Frequently Asked Questions

Q

What happened to Grad PLUS loans in 2026?

The One Big Beautiful Bill Act (OBBBA) eliminated Grad PLUS loans starting July 1, 2026. Previously, graduate and professional students could borrow up to the full cost of attendance through Grad PLUS loans. Now they're limited to Direct Unsubsidized loans: $20,500/year for graduate students and $33,000/year for professional students (medical, dental, law). This creates potential funding gaps for students at expensive programs.

Grad PLUS loans ended July 1, 2026 under the One Big Beautiful Bill Act (OBBBA)
Previously, Grad PLUS covered up to 100% of cost of attendance (no cap)
New cap: $20,500/year for graduate students, $33,000/year for professional students
A law student at a $60K/year school now faces a $27,000 annual funding gap
Existing Grad PLUS loans are unaffected — only new originations after July 2026

Q

What are the new federal student loan limits for 2026?

For 2026-27: Dependent undergrads can borrow $5,500-$7,500/year (aggregate $31,000). Independent undergrads: $9,500-$12,500/year (aggregate $57,500). Graduate students: $20,500/year in Direct Unsubsidized loans (aggregate $138,500 including undergrad). Professional students: $33,000/year (aggregate $224,000). The key change is graduate/professional students can no longer use PLUS loans to cover remaining costs.

Dependent undergrad: $5,500 (Year 1), $6,500 (Year 2), $7,500 (Years 3–4); aggregate $31,000
Independent undergrad: $9,500 (Year 1), $10,500 (Year 2), $12,500 (Years 3–4); aggregate $57,500
Graduate: $20,500/year Direct Unsubsidized; aggregate $138,500 (including undergrad debt)
Professional (medical, dental, law): $33,000/year; aggregate $224,000
Parent PLUS loans for undergrads are not affected — still available up to cost of attendance

Student Type	Annual Limit	Aggregate Limit	Interest Rate (2025–26)
Dependent Undergrad (Yr 1)	$5,500	$31,000	6.53%
Independent Undergrad (Yr 1)	$9,500	$57,500	6.53%
Graduate	$20,500	$138,500	8.06%
Professional	$33,000	$224,000	8.06%

Q

How do I cover a funding gap without Grad PLUS loans?

Options to fill the gap: 1) Private student loans (rates vary, 4-14% in 2026). 2) Graduate assistantships with tuition waivers (save $15-40K/year). 3) Employer tuition reimbursement ($5,250/year tax-free). 4) Scholarships and fellowships. 5) Income from part-time work. 6) Savings and family contributions. Private loans lack federal protections like income-driven repayment, so exhaust scholarships and assistantships first.

Graduate assistantships: tuition waiver + $15–25K stipend (covers $15–40K/year in tuition)
Employer tuition reimbursement: up to $5,250/year tax-free under IRS Section 127
Private student loans: rates 4–14% in 2026, but no income-driven repayment or forgiveness
Fellowships and scholarships: search FastWeb, Scholarship America, and department-specific awards
Part-time work during grad school: 10–20 hrs/week can cover $8–15K/year

Funding Source	Annual Amount	Key Tradeoff
Graduate assistantship	$15–40K (tuition waiver)	20 hrs/week work required
Employer tuition reimbursement	$5,250 tax-free	Must maintain employment
Private student loans	Up to cost of attendance	No federal protections
Fellowships/scholarships	$5–50K	Competitive, application process
Part-time work	$8–15K	Reduced study time

Q

What is the interest rate on federal student loans in 2026?

For the 2025-26 academic year, Direct Unsubsidized loan rates are 6.53% for undergraduate students and 8.06% for graduate/professional students. Rates are set each July based on the 10-year Treasury note auction. Without Grad PLUS, graduate students no longer face the even higher PLUS rate (which was 9.08%) — the 8.06% Direct Unsubsidized rate is actually lower.

Undergraduate Direct Unsubsidized: 6.53% fixed (2025–26 academic year)
Graduate/Professional Direct Unsubsidized: 8.06% fixed (2025–26)
Old Grad PLUS rate was 9.08% — elimination actually saves 1.02% on interest
Rates reset each July based on the 10-year Treasury note plus a fixed margin
No origination fee on Direct Unsubsidized loans (PLUS had a 4.228% fee)

Q

Are current Grad PLUS loans affected by the 2026 changes?

No, existing Grad PLUS loans are not affected. The elimination only applies to new loan originations after July 1, 2026. If you already have Grad PLUS loans, your terms remain unchanged. Students currently enrolled may want to borrow their remaining Grad PLUS amounts before the July 2026 deadline if they'll need the additional funding.

Existing Grad PLUS loans keep their original terms, rates, and repayment options
Income-driven repayment (IDR) plans still apply to existing Grad PLUS balances
PSLF (Public Service Loan Forgiveness) still covers existing Grad PLUS loans
Students enrolled before July 2026 can borrow remaining PLUS amounts before the cutoff
Consolidation of existing Grad PLUS into Direct Consolidation is still available

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Example Calculations

1Graduate Student — $40K/Year Program

Inputs

Degree TypeGraduate

Years Remaining2

Annual Tuition$40,000

Current Balance$25,000

Result

Funding Gap$39,000

Max Federal$41,000

Total Needed$80,000

Monthly Payment$802

A graduate student with 2 years remaining at $40K/year can borrow $41,000 in federal loans ($20,500/year). With $80,000 total needed, there's a $39,000 gap that requires private loans or other funding. Monthly payment on $66,000 total debt (including $25K existing) would be about $802 over 10 years at 8.06%.

2Dependent Undergrad — 4 Years at $25K

Inputs

Degree TypeDependent Undergrad

Years Remaining4

Annual Tuition$25,000

Current Balance$0

Result

Funding Gap$73,000

Max Federal$27,000

Total Needed$100,000

Monthly Payment$307

A dependent undergrad can borrow up to $27,000 over 4 years in federal loans ($5,500 + $6,500 + $7,500 + $7,500). With $100,000 total cost, there's a $73,000 gap to fill via parent PLUS loans, scholarships, or savings. Monthly payment on $27K would be about $307 at 6.53%.

3Law Student — $55K/Year, 3 Years

Inputs

Degree TypeProfessional

Years Remaining3

Annual Tuition$55,000

Current Balance$30,000

Result

Funding Gap$66,000

Max Federal$99,000

Total Needed$165,000

Monthly Payment$1,569

A law student can borrow $99,000 over 3 years ($33,000/year) in federal loans. At $55K/year, the total cost is $165,000, leaving a $66,000 gap. With $30K existing debt, total debt of $129K means monthly payments around $1,569 over 10 years at 8.06%.

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Student Loans in 2026: What Changes and What It Means

The biggest change to federal student loans in decades takes effect July 1, 2026: the elimination of Grad PLUS loans. Previously, graduate and professional students could borrow up to the full cost of attendance. Under the new rules, they're capped at $20,500/year (graduate) or $33,000/year (professional) in Direct Unsubsidized loans.

For students at affordable programs, this may not matter. But for those at schools costing $40,000-$80,000+ per year, the funding gap could be substantial. A law student at a $60,000/year school faces a $27,000 annual gap that must be filled through private loans, scholarships, or other sources.

This calculator helps you understand your new federal borrowing limits, identify any funding gap, and estimate monthly repayment. Whether you're an incoming freshman or a current grad student planning ahead, seeing the numbers clearly helps you make better borrowing decisions.

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