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Graduate PLUS Loans Eliminated

The federal government ended the Graduate PLUS loan program for new applicants on July 1, 2026. This was done via the Working Families Tax Cuts Act, which affects students (including student veterans) pursuing advanced degrees.

Graduate PLUS Loans Eliminated

With Graduate PLUS borrowing eliminated, new students must use alternative options for the costs of graduate education. You may be able to continue using Graduat PLUS if you were enrolled before the new guidelines, as we examine below.

>> Find VA-approved schools. Use our School Finder tool.

Exceptions to Graduate PLUS Rules

According to the federal government, if you are a graduate or professional student, “you may be eligible to borrow a Direct PLUS Loan under the limited exception for your expected time to complete “if you meet the following requirements:

• You were enrolled in a program of study at a school as of June 30, 2026;
• You borrowed a Direct Loan for that program of study before July 1, 2026;
• You are currently enrolled at the same school in the same program of study, and
• You haven’t had any break in your enrollment in the same program and the same school at any time as of July 1, 2026. An approved leave of absence isn’t considered a break in your enrollment.
• Graduate and professional students who don’t (or no longer) qualify for this limited exception are not eligible to borrow Direct PLUS Loans.

Current Students Using PLUS

If you enrolled in your program by June 30, 2026, and received a Direct Unsubsidized Loan or a Graduate PLUS Loan before July 1, 2026, you may use the old system. These protections allow you to continue borrowing Graduate PLUS loans until you complete your degree program or until June 30, 2029, whichever comes first.

If you transfer schools or change your program of study, you lose your legacy status and become subject to the lower limits.

PLUS Alternatives for New Graduate Students

What can new grad students do to replace their options under the now-canceled Graduate PLUS program?

• Commercial lenders are one option for borrowing up to the cost of attendance. Lenders offer multi-year approval options, allowing graduate students to secure funding limits for the duration of their degree upfront. Unlike federal loans, private loans require credit underwriting and demand a co-signer.
• Financial aid offices are adapting to the law by expanding scholarships, graduate assistantships, and university-administered extended payment plans to keep tuition manageable.
• Corporate tuition reimbursement programs serve as a critical offset. Companies allow employees to tap into tax-free educational assistance.

While the Post-9/11 GI Bill covers in-state tuition at public schools, veterans seeking master’s, doctoral, or professional degrees at private universities typically rely on Graduate PLUS loans to bridge the financial gap.

Previously, these loans allowed students to borrow up to the cost of attendance, covering housing, books, and fees. Moving forward, new students must look to personal savings, scholarships, or the private lending market if expenses exceed the new federal caps.

How the Graduate PLUS System Operated

Established in 2006, the Graduate PLUS program served as a financial safety net for students whose academic costs exceeded standard federal limits. The feature was its lack of a dollar ceiling. The financial aid office at each university determined the cost of attendance, and the government disbursed the requested amount.

Unlike standard undergraduate loans, the program required a check to confirm the absence of an adverse credit history, such as foreclosures or bankruptcies.

>> Find VA-approved schools. Use our School Finder tool.