Federal negotiated rulemaking tied to the One Big Beautiful Bill Act reached consensus on new limits for graduate borrowing, effectively ending the Grad PLUS program and introducing tiered caps for federal graduate loans. The Reimagining and Improving Student Education (RISE) Committee agreed on proposals that would cap annual borrowing and set lifetime limits, including a $100,000 cap for most graduate students and a $200,000 cap for students in designated “professional” programs. The Association of Governing Boards (AGB)’s policy alert summarizes the negotiated outcomes and warns governing boards to prepare for major budget and enrollment impacts beginning with regulatory guidance and a proposed rule in early 2026 and implementation by July 2026. The policy will force institutions to reassess graduate financial aid packaging, tuition strategies, and recruitment of advanced-degree candidates. Why it matters: The caps change the federal financing model for graduate education and could shift enrollment patterns, institutional budgets, and access to professional and advanced degrees — prompting boards and finance officers to retool strategy and financial forecasting.