*This information is accurate as of October 14, 2025
Starting July 1, 2026, the federal Graduate PLUS loan program will be eliminated for new borrowers, and borrowing limits and repayment structures will cap how much graduate students can borrow federally. These changes have significantly impacted our Financial Aid Office, as definitive rules are still not available as of October, and will continue to impact future RMU students who will be making tougher decisions about how to finance an advanced degree.
What’s Changing with Graduate PLUS Loans in 2026
Grad PLUS loans eliminated for new borrowers
- Beginning July 1, 2026, Graduate PLUS Loans will no longer be available to new borrowers.
- New borrowers are defined as anyone receiving a federal student loan at RMU after June 30, 2026—including brand-new Fall 2026 students and current students starting a new graduate or professional program.
New federal borrowing caps for graduate and professional students
Under the new system, loan limits will be capped per semester and overall:
- Graduate/master’s programs: $10,250 per semester, up to $100,000 total
- Borrowing limit for undergraduate loans + graduate loans is $157,000
- Professional programs ( e.g. Optometry): $20,500 per semester, up to $200,000 total
- Borrowing limit for undergraduate loans + professional loans is $257,000
Repayment plans restructured
The current repayment options will phase out by 2028, to be replaced with only two plans:
- Tiered Standard Plan – Fixed payments within a 10, 15 or 25 year repayment period, depending on outstanding loan balance
- Repayment Assistance Plan (RAP) – Payments will be 1-10% of annual income, depending on annual salary
What is a “Legacy Borrower”?
If you borrow a federal loan for your current RMU program before June 30, 2026, you will qualify as a legacy borrower. Legacy borrowers can continue borrowing Grad PLUS loans under current rules for up to three years (until June 30, 2029) or until program completion, whichever comes first. Legacy borrowers are not subject to new borrowing limits.
How this Affects RMU Students
Eligible RMU students will have access to Federal Direct Unsubsidized Loans and private student loans to fund their education up to their Cost of Attendance. Scholarships should also be sought out to assist with financing, visit our website for internal and external options.
Current and future RMU students should continue to monitor your RMU email for updates from our Financial Aid Office. As more information becomes available, they will ensure affected students are informed. Any questions or concerns can be sent directly to fa@rm.edu.
To learn more:
- Visit the RMU Financial Aid Office webpage
- Review available scholarships and grants
- Contact our Financial Aid team directly at fa@rm.edu for guidance
