New federal graduate and professional student loan caps are set to reshape borrowing starting July 1 by eliminating Grad PLUS for new borrowers and applying new annual and aggregate limits. Under the updated structure, most graduate programs face a $20,500 annual federal limit, with higher limits for qualifying professional programs. A COHEAO report modeling the effects estimates roughly $8.7 billion in modeled borrowing exposure above the new caps, with patient-facing healthcare programs representing about 70% of that exposure. The distribution matters: 166 high-brand institutions account for about $3.3 billion of modeled impact, while smaller private nonprofits under 5,000 undergraduates account for about $1.9 billion. The shift turns financing policy into an enrollment and student-need challenge for campuses—especially where prospective students rely on graduate debt to remain connected to high-value career pathways.