With the Big Beautiful Bill ending Grad PLUS loans in 2026, many students looking at graduate school are wondering how the new student loan limits will impact them.

The Grad PLUS loan program allowed graduate students – both graduate and professional – to borrow up to the full cost of attendance. However, starting July 1, 2026, the new limits under the Direct Loan Program for Graduate Students would be:

• Graduate Students (Master’s): $20,500 annually, $100,000 total limit.
• Professional Students (e.g., Law, Medicine): $50,000 annually, $200,000 total limit.

So, the question arises: what’s considered a graduate student, and what’s considered a professional student. We break down the Federal Student Aid (FSA) handbook.

What Is Considered Graduate School?

These include academic programs beyond a bachelor’s degree, usually in arts and sciences. Here are some of the most common graduate school degrees and programs:

Master’s Degrees:

Doctoral Degrees:

• Ph.D. (Doctor of Philosophy)
• Ed.D. (Doctor of Education)

What Is Considered Professional School?

These are advanced degrees required to practice in certain fields (usually including professional licensing). These degrees also have a level of skill required beyond what’s normally required for a bachelor’s degree.

According to the latest from the RISE negotiated rule-making committee, professional school leads to one of the following degrees:

• Law (LLB or JD)
• Medicine (MD or DO)
• Pharmacy (PharmD)
• Dentistry (DDS or DMD)
• Veterinary Medicine (DVM)
• Optometry (OD)
• Podiatric Medicine (DPM, DP, or Pod.D.)
• Clinical Psychology (Psy.D.) 
• Chiropractic (DC or DCM)
• Theology or Divinity (MDiv or MHL) *depends on context and accreditation

People Also Ask

What about dual degree/combo programs for bachelor’s degrees and master’s degrees?

A student enrolled in a dual degree program can receive undergraduate financial aid until the complete the undergraduate portion of the program, in which case they can then receive graduate aid. That’s typically considered at least three years of study.

What’s the difference between graduate and professional school?

Graduate school generally emphasizes advanced academic study and research, while professional school prepares students for specific careers – such as medicine and law.

What’s considered a graduate or professional student?

This is a student who is pursuing education beyond an undergraduate (bachelor’s) degree. There are two types: graduate and professional.