In a May 1 final rule, the Department of Education (DOE) implements H.R. 1 provisions that restructure student loans and loan repayment plans.
Under the Reimagining and Improving Student Education Federal Student Loan Program final rule, the DOE will cap federal student loan borrowing for graduate and professional students beginning July 1.
- Graduate student loans are capped annually at $20,500, with an aggregate cap of $100,000.
- Professional student loans are capped annually at $50,000, with an aggregate cap of $200,000.
- All borrowers who receive a loan made on or after July 1, 2026, are subject to an aggregate lifetime loan limit of $257,500, with narrow exceptions.
The definition of a professional student includes fields of pharmacy, medicine, osteopathic medicine, podiatry and clinical psychology. A professional degree is generally at the doctoral level and requires professional licensure to begin practice.
Other health programs, such as nursing, social work, and physical therapy, fall under the “graduate student” category. The lower limit on federal student loans for these programs will increase barriers to entry, affecting health care recruitment and potentially exacerbating future workforce shortages.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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