P.L. 119-21 – One Big Beautiful Bill - Reconciliation Bill

If you are currently receiving aid or in loan repayment, your loans and grants remain for now under the present terms.  The changes, including the new loan limits and repayment options, will apply to new borrowers beginning with the 2026-2027 academic year.  As the federal rules are finalized, we will provide additional details

If you continue to enroll in the same degree program for the 2026-2027 academic year, you will be a part of the legacy provision of the bill.  We are waiting for further guidance from the U.S. Department of Education on how the legacy provision will be implemented.

Beginning with the 2026-2027 academic year, new federal loan limits will apply to graduate and professional students.

Graduate students will be limited to $20,500 per year in unsubsidized loans, with a lifetime cap on graduate-level borrowing of $100,000, not including any undergraduate loans.  The following programs are considered graduate programs, MS programs, PhD programs.

Professional student will be limited to $50,000 per year in unsubsidized loans, with a lifetime maximum of $200,000 for professional program borrowing, not including any undergraduate or graduate level loans.  The U.S. Department of Education classifies the following UMB programs are professional programs – Doctor of Medicine (MD) Doctor of Dental Surgery (DDS), Juris Doctorate (JD) and Doctor of Pharmacy (PharmD).

Students currently enrolled remain eligible for the previous loan limits.

The definition of a professional program is defined in federal regulation (34 CFR § 668.2).  Professional programs usually signify completion of academic requirements for beginning work or practice with a terminal degree at the doctoral level where the degree requires licensure in a recognized profession.  The federal regulation includes the following programs in the definition:

• Pharmacy (Pharm.D.);
• Dentistry (D.D.S. or D.M.D.);
• Veterinary Medicine (D.V.M.);
• Chiropractic (D.C. or D.C.M.);
• Law (L.L.B. or J.D.);
• Medicine (M.D.);
• Optometry (O.D.);
• Osteopathic Medicine (D.O.),;
• Podiatry (D.P.M., D.P., or Pod.D.);
• Theology (M.Div., or M.H.L.); and
• Clinical Psychology (Psy.D. or Ph.D.)

All other post-baccalaureate programs, including most master’s and PhD programs—are classified as graduate.

Employer-sponsored education benefits

State aid programs for those considered Maryland residents for tuition purposes

External scholarships

UMB payment plans

Private Educational Loans

When do the rules take effect?

Changes to the loan limits, elimination of the federal direct Graduate PLUS and changes to the federal Pell grant eligibility take effect July 1, 2026

Updates will be posted to this website

Contact financial aid (aidtalk@umaryland.edu)

Monitor announces from the U.S. Department of Education at www.studentaid.gov

Communication from UMB.