The U.S. Department of Education and its negotiated-rulemaking committee agreed this week on new definitions and borrowing limits that reclassify which postbaccalaureate programs qualify as “professional” and therefore for higher federal loan caps. Negotiators, led by undersecretary Nicholas Kent and department officials, settled on rules that narrow eligibility for the largest loan ceilings and set new annual and lifetime borrowing limits. Committee members said the clarification was necessary after Congress imposed borrowing caps in this summer’s budget-reconciliation law. The department’s definitions distinguish professional programs by licensure, degree level and length of study—moves that will cut federal lending capacity for many master’s programs that previously relied on Grad PLUS borrowing. Institutions that depend on graduate tuition revenue warned the caps could force program redesigns or reduced enrollments in fields where federal borrowing will fall short of cost. The department stressed the plan still faces public comment and could be adjusted before final rule publication. Clarification: “Grad PLUS” refers to the federal loan program that previously allowed graduate students to borrow up to program cost; Congress eliminated unlimited Grad PLUS authority as part of the new law.