The U.S. Department of Education finalized sweeping federal student-loan regulations that tighten borrowing limits for graduate students beginning July 1. The rule redefines which graduate degrees qualify as “professional,” allowing higher caps for only 11 specified fields while reducing limits for most other graduate programs. The changes also sunset Grad PLUS loans and revise repayment options, shifting more costs to students and colleges as institutions prepare for a new funding landscape. The department’s stated goal is to curb higher-ed costs and address overborrowing and confusion in repayment. Higher education leaders and professional organizations criticized the narrow definition of “professional” degrees, warning it could reduce enrollment in critical education and healthcare workforce pathways—especially programs already facing labor shortages. Litigation and advocacy are expected to continue, as excluded programs and borrower advocates argue the policy undermines access for students pursuing licensure-heavy graduate training.