The U.S. Department of Education finalized new federal student loan regulations that tighten borrowing for graduate students and reshape repayment options, with most provisions taking effect July 1. The rule keeps a narrow, contested definition of “professional student,” which expands higher annual caps only for 11 specific fields. Under the final framework, students in “professional” programs can borrow up to $50,000 annually and $200,000 in aggregate, while other graduate students face lower caps of $20,500 annually and $100,000 total. The department also outlines the sunsetting of Grad PLUS loans and narrowed repayment choices, as mandated by a major 2024 tax and spending law. Higher education leaders and professional groups criticized the exclusions—especially from health and education-adjacent fields—arguing that they could worsen labor shortages and delay licensure pathways. The Association of Public and Land-grant Universities said it is “profoundly disappointed,” while the department maintained the rule is tied to an existing regulatory definition the law required to preserve. Advocacy groups also continued pushing Congress to broaden access to higher graduate loan limits. The Department’s decisions arrive as the student aid policy landscape remains in flux, including litigation affecting existing repayment plans.