"The One Big Beautiful Bill Act (OBBBA) ushers in changes to the federal student loan landscape starting July 1, 2026. These include updates affecting graduate program funding—namely, the elimination of Grad Plus loans and new borrowing limits on other federal loans," The Wall Street Journal reports.

... "'Unlike traditional federal student loans (subsidized and unsubsidized Direct Loans), Grad Plus loans have a creditworthiness component. This means that while standard federal loans require no credit check, Grad Plus loans do. That said, the credit check is not as in-depth as for private student loans, making Grad Plus loans generally easier to access,' explains Megan Walter, senior policy analyst for the National Association of Student Financial Aid Administrators."

... "The sunset of the Grad Plus loan program significantly affects graduate and professional students who typically rely on these loans to access fair terms."

"'The borrowers most likely to be affected are, of course, graduate and professional students, particularly those with poor credit or low incomes who might not qualify for private loans to fill the gap that Grad Plus previously covered,' Walter says."

... "The combination of new limits with the elimination of Grad Plus loans can affect graduate students' ability to cover degree costs."

"'Students in the highest-cost programs, particularly medicine and law, are among those most affected, as they have historically relied on Grad Plus the most,' Walter says."

"Alternatives such as private student loans might not be available to all borrowers. This could restrict access to certain degree programs."

"'If they don't have strong enough credit to obtain a private education loan, their access to that program could be severely limited or completely cut off,' Walter adds."

... "'There are a few important things to remember with private loans. First, they are not eligible for forgiveness programs such as Public Service Loan Forgiveness (PSLF). Even if your federal loans are forgiven under PSLF, you're responsible for repaying your private loans,' Walter warns."

... "However, the most creditworthy students could access better terms with private loans than with Grad Plus loans."

"'If you or a cosigner has strong credit, you might qualify for a lower interest rate than Grad Plus offers—just under 9% this year—potentially saving money on interest over time,' Walter says."

"Check your credit score and compare private student loans to find the best option."

"'If you don't think you'll qualify on your own, contact potential cosigners as soon as possible,' Walter advises."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 5/19/2026