Overview
Federal Direct Unsubsidized Loans remain the primary federal borrowing option for Midwestern University graduate and professional students. These loans are borrowed in the student’s name and must be repaid after graduation, upon dropping below half-time enrollment, or leaving school.
What’s Changing on July 1, 2026
Under the One Big Beautiful Bill Act (OBBBA), several major updates will take effect:
Elimination of the Graduate PLUS Loan Program
- The Graduate PLUS Loan will no longer be available to new borrowers beginning July 1, 2026.
- This change means future graduate and professional students will no longer be able to borrow beyond the federal unsubsidized loan limits to cover their full cost of attendance.
Legacy Provision for Current Students
- Students who have a Grad PLUS Loan disbursed before July 1, 2026 are grandfathered under the existing program.
- They may continue borrowing under current Grad PLUS rules for up to three additional academic years or until their program ends - whichever comes first.
- In practice, this ensures that current Midwestern University students can complete their programs without disruption to their federal funding eligibility.
New Federal Loan Limits
Beginning July 1, 2026, annual and lifetime borrowing caps for federal Direct Unsubsidized Loans will apply as follows:
| Student Type | Annual Limit | Lifetime Limit |
|---|---|---|
| Graduate (Master’s/Research) | $20,500 | $100,000 |
| Professional (Medicine, Dentistry, Optometry, Pharmacy, Veterinary, etc.) | $50,000 | $200,000 |
| Overall Federal Loan Cap (excl. Parent PLUS) | N/A | $257,500 |
Note: These limits include any prior undergraduate or graduate federal borrowing.
Impact on Future Borrowers
- Students entering professional or doctoral programs after July 2026 may see a gap between total program costs and the new federal borrowing caps.
- To meet full educational expenses, future students may need to explore institutional aid, scholarships, personal resources, or credit-based private loans.
- Private loans typically carry higher interest rates and fewer federal protections, so maintaining strong credit health will be more important than ever.
Public Service Loan Forgiveness (PSLF) Still Available
- The PSLF program remains active and continues to provide federal loan forgiveness for qualifying borrowers who work full-time in nonprofit or public service roles after graduation.
- Time spent in medical or dental residencies at nonprofit hospitals will still count toward the 120 required payments.
- Because future students may borrow less federally, they may have smaller balances eligible for forgiveness, but current MWU students can continue to benefit from full PSLF eligibility.
What This Means for Current MWU Students
If you are enrolled before July 1, 2026, you can continue to:
- Borrow under existing Grad PLUS rules for the remainder of your program (or up to three years).
- Access Direct Unsubsidized Loans under current annual and aggregate limits.
- Qualify for income-driven repayment (IDR) and PSLF after graduation.
These safeguards ensure that your financing plan remains stable while you complete your degree.
Planning Ahead
- Review your total borrowing and estimate how future caps may affect additional degrees or residencies.
- Monitor your credit health, since private and institutional loans will become a larger part of graduate financing options.
- Stay informed through Midwestern University’s Sensible Strategies and Student Financial Services updates as new Department of Education guidance is released.