The U.S. Department of Education issued new federal student loan rules that cap borrowing for postgraduate degrees and eliminate the Grad PLUS loan option for new borrowers beginning July. The final regulation replaces the prior structure with a two-tier system that distinguishes “professional” degrees from other graduate programs. Under the new limits, professional degree students can borrow up to $50,000 per year and $200,000 in total, while other graduate programs are capped at $20,500 per year and $100,000 total. The rule package also establishes updated repayment plan options for borrowers, while noting exceptions for students already enrolled and receiving Grad PLUS loans. Federal officials argue the caps will curb tuition inflation by reducing excess borrowing capacity. The policy arrives amid broader changes to the student aid and repayment landscape, including litigation affecting income-driven repayment and limits on certain forgiveness options for federal borrowers. Student advocates and higher education leaders are likely to focus on how institutions structure graduate pricing, the net price students will face, and whether the policy meaningfully improves college affordability for master’s and doctoral students.