The U.S. Department of Education finalized rules tightening federal graduate student lending, including new caps that treat only 11 narrowly defined graduate fields as “professional,” granting access to higher aggregate and annual loan limits. Other graduate programs—including education and nursing—remain subject to lower caps. The rule also sets the sunsetting of Grad PLUS loans and introduces changes to repayment options and other program mechanics, with most provisions taking effect July 1. The department framed the changes as cost control for federal lending under the One Big Beautiful Bill. Education and professional groups warned the narrow definition could reduce enrollment in education and other graduate programs, particularly where part-time students and those seeking licensure rely on federal aid. Higher education leaders said the policy could worsen staffing shortages in critical fields. Litigation and regulatory challenges are expected, with advocates arguing the “professional student” definition excludes areas that require licensure and carry high training costs despite being central to workforce needs.