Question 1

How many graduate programs are affected by the Grad PLUS elimination?

Accepted Answer

Of 7,333 graduate and professional program-institution combinations analyzed using 2025–2026 tuition data from 1,861 U.S. universities, 6,983 (95.2%) exceed the new federal loan caps. Only 350 programs (4.8%) would be fully covered by federal loans alone.

Question 2

What is the funding gap created by the OBBBA?

Accepted Answer

The aggregate annual funding shortfall is approximately $51.8 billion after accounting for grants and scholarships. At sticker price the gap is $59.9 billion. The median per-program annual gap is $20,750.

Question 3

Can private lenders replace Grad PLUS loans?

Accepted Answer

The data suggests they cannot. The private student loan market originates roughly $14 billion per year. Net Grad PLUS displacement is $11–13 billion. The market would need to nearly double, and approximately 90% of private loans require a co-signer.

Question 4

What are the new federal loan caps for graduate students?

Accepted Answer

Effective July 1, 2026: $50,000/year for federally designated professional degrees (MD, JD, DDS/DMD, PharmD, DO, DVM, DPM, DC) and $20,500/year for all other graduate programs. Aggregate limits: $200,000 professional, $100,000 graduate, $257,500 lifetime maximum.

Question 5

Which graduate programs are most affected?

Accepted Answer

Healthcare training programs face the most severe impact. 100% of PA, DPT, OT, and Audiology programs have a funding gap. PA students face a median gap of $39,580/year because they receive the $20,500 cap despite median costs of $60,080.

Question 6

When does the Grad PLUS elimination take effect?

Accepted Answer

July 1, 2026 for new borrowers. Students who received a Grad PLUS disbursement before that date retain access for up to three academic years. New students entering fall 2026 face the caps immediately.

Question 7

Can tuition cuts close the graduate funding gap?

Accepted Answer

A 20% tuition reduction does not close the gap for any of the 11 largest program types. Six would require cuts exceeding 100%—even free tuition would not eliminate the gap because living expenses and fees alone exceed the cap.

Question 8

How does the out-of-state penalty affect the funding gap?

Accepted Answer

The median out-of-state gap ($27,281) is double the in-state gap ($13,664). The median non-resident COA premium is $12,245 across 1,510 paired programs.

The 2026 Graduate Education Funding Crisis

The Largest Change to Graduate Education Financing Since 2006

Seven Findings from 7,333 Programs

Download the Full Report

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Data Sources