Federal negotiations and Education Department rulemaking have converged on steep new limits for graduate federal borrowing that could take effect in mid‑2026. The One Big Beautiful Bill Act implementation and recent negotiated rulemaking propose tiered caps—reporting has cited $100,000 annual limits for graduate students and up to $200,000 for professional students—effectively ending the Grad PLUS era. Analysts warn the cap could reduce aggregate student debt but also push some candidates toward costlier private credit or deter enrollment in advanced degrees. Board governance groups and institutional leaders are being urged to model enrollment and budget scenarios under the new rules. The proposed timeline gives institutions limited runway to adapt financial aid packaging, program pricing and recruitment strategies; legal challenges and policy refinements are still possible during the public‑comment phase.