Lead: The U.S. Department of Education reached consensus in negotiated rulemaking that will implement new federal borrowing limits for graduate and professional students, signaling a major redesign of graduate finance ahead of a proposed rule in early 2026. The rulemaking, summarized in an AGB policy alert, outlines tiered caps — roughly $100,000 for most graduate programs and $200,000 for designated "professional" programs — and spells out a July 2026 effective date for the changes. The ED also faces pushback in Congress over discretionary reallocation of funds: critics raised alarms after the department used 'special projects' grants, prompting senators and higher-education stakeholders to question whether the administration is exceeding congressional intent. The timing of the guidance — coming as institutions budget for 2026 and beyond — leaves colleges and graduate programs assessing enrollment, tuition and financial-aid strategies. Board members, financial officers and admissions leaders should expect follow-up rule text, public comment periods, and a likely scramble to model enrollment and revenue impacts, particularly at professional schools that rely on tuition and federal loan supply. The ED’s actions provide early notice of structural shifts to graduate funding that could alter program viability, recruiting and pricing decisions.