Important Changes to Graduate/Professional Loan Programs Effective July 1, 2026

Dear Graduate/Professional Student,

The One Big Beautiful Bill Act (OBBBA) made significant changes to the federal student aid programs for graduate and professional students effective July 1, 2026.

What Changed?

Graduate PLUS Loans Eliminated
The Federal Direct Graduate PLUS Loan program has been eliminated for new borrowers. Graduate and professional students remain eligible for Federal Direct Unsubsidized Loans, but new borrowing limits now apply.

New Federal Direct Unsubsidized Loan Limits

o    Graduate degree programs: $20,500 annual limit, $100,000 aggregate limit.

o    Doctor of Veterinary Medicine: $50,000 annual limit, $200,000 aggregate limit.

o    Lifetime federal student loan limit: $257,500, including any Graduate PLUS Loans previously borrowed

Legacy Provision
Students who received a Direct Unsubsidized Loan or Graduate PLUS Loan disbursement prior to July 1, 2026, while enrolled in their current degree program at Mississippi State University (MSU), and who have remained continuously enrolled in that degree program without withdrawing at any point, may continue borrowing under the pre-July 1, 2026, federal loan limits.

o    Unsubsidized Direct Loan: $20,500 annually, up to an aggregate limit of $138,500.

o    Graduate PLUS Loan: Up to the full cost of attendance for three academic years from the start of the program or until program completion, whichever comes sooner.

To learn more about these and other upcoming federal aid changes, visit our Important Updates page:
https://www.sfa.msstate.edu/important-updates/important-updates-one-big-beautiful-bill-act

We encourage you to review your upcoming financial plans and consider how these changes may affect your family’s educational funding strategy.

We provide support tailored to you. If you have questions or need assistance, contact the Mississippi State Office of Financial Aid and Scholarships at 662-325-2450 or email at financialaid@msstate.edu.