Are Grad PLUS Loans Still Available? | What Changes In 2026

Yes, Direct Grad PLUS loans can still be awarded through June 30, 2026; new borrowing rules start July 1, 2026.

If you’re paying for grad school with loans, “still available” is not a casual question. It’s a planning question. One date can decide whether federal loans cover your full budget or leave a gap you must fill another way.

Below you’ll get a clear timeline, the current eligibility rules, and a simple way to plan around July 1, 2026 so you don’t get stuck mid-program.

What “Still Available” Means In Early 2026

As of February 2026, schools can still originate Direct Grad PLUS loans for eligible graduate and professional students during the 2025–26 aid year. You can apply, pass the PLUS credit review, sign your promissory note, and receive disbursements on your school’s schedule.

The confusion comes from a second statement that is true at the same time: major changes are scheduled to start July 1, 2026. Many school notices describe Grad PLUS ending for “new borrowers” on that date, with separate rules for some continuing students who already have a Grad PLUS disbursement on record before the cutoff.

Grad PLUS Loan Availability In 2026 And Beyond

Federal and campus guidance points to July 1, 2026 as the transition date for new graduate borrowing limits. The U.S. Department of Education has summarized the upcoming caps and the shift away from borrowing up to cost of attendance for certain new borrowers in a public update. Department of Education rulemaking update.

That means your real question is usually one of these:

• Will I have a Grad PLUS disbursement before June 30, 2026?
• If I switch programs, do I become a new borrower under the post-July rules?
• If I’m continuing in the same program, do I qualify for a legacy window?

Date markers worth memorizing

• June 30, 2026: last day before the new rules take effect.
• July 1, 2026: new borrowing rules begin, including caps for new borrowers described in federal updates.

How Direct Grad PLUS Works Under Today’s Rules

Grad PLUS is part of the federal Direct Loan program. It’s meant for graduate or professional students who need funds beyond the Direct Unsubsidized Loan limits. It is not need-based. Interest accrues once the loan disburses. The amount you can request is tied to your school’s cost of attendance (COA) minus other aid.

Core eligibility requirements

• Graduate or professional enrollment at least half-time in an eligible program.
• A completed FAFSA for the right aid year.
• General federal aid eligibility (no unresolved default, satisfactory academic progress, and required identity/citizenship checks).
• No adverse credit history for PLUS loans, or approval through an endorser or an extenuating-circumstances review.

What the credit review is checking

The PLUS credit review is not a “score cutoff.” It looks for specific negative items and serious delinquencies in a defined lookback period. If you’re denied, federal rules still give you ways to regain eligibility, which is why timing matters. A denial in August can turn into a disbursement in September, yet only if you leave room for the extra steps.

How To Apply Without Getting Tripped Up

The smoothest applications follow a simple order: school file first, then federal application, then your promissory note, then any school holds.

Application sequence

1. Confirm your FAFSA is processed and your school has built your aid package.
2. Submit your request through the official Grad PLUS application.
3. Complete the Grad PLUS Master Promissory Note if your school requires a new one.
4. Finish any required counseling and satisfy school verification items.

If your school is close to the July 1, 2026 transition, ask one direct question: “What date counts as my first Grad PLUS disbursement?” Approval date is not the same as disbursement date. Your school’s disbursement calendar and enrollment posting can decide the outcome.

What Changes On July 1, 2026

Beginning July 1, 2026, the federal system is set to move away from the open-ended “borrow up to COA” setup for many new graduate borrowers. Federal summaries describe new annual and lifetime caps for graduate and professional students and the end of Grad PLUS access for new borrowers under that new structure. The exact impact depends on whether you meet any legacy definition set out in guidance your school follows.

If you are starting a program after the cutoff, plan for a capped federal unsubsidized amount plus other funding. If you are already enrolled with a prior Grad PLUS disbursement before the cutoff and you remain in the same program, some schools describe continued Grad PLUS access for a limited window. Your financial aid office is the final word on how they apply that rule to your enrollment record.

Rates, Fees, And The “Net Disbursement” Reality

Two numbers control what Grad PLUS really costs: the fixed interest rate for the disbursement year and the origination fee deducted before funds reach your account. That fee means you may need to request a bit more than the bill amount to net the cash you planned for.

For loans first disbursed between July 1, 2025 and June 30, 2026, the Federal Student Aid partner site posts the official rates by loan type. FSA Partners interest-rate announcement (2025–26)

Before you accept, run your plan using net disbursement, not the gross amount you requested. That keeps you from assuming you have rent money that was never going to arrive.

Cost Of Attendance Rules That Shape Your Borrowing Ceiling

COA is the maximum your school can certify for federal borrowing. It usually includes tuition, mandatory fees, books, supplies, housing, food, and basic personal costs. Many schools can add documented items like childcare, disability-related costs, required equipment, or required program fees through a COA adjustment process.

COA matters in two ways. First, it sets your Grad PLUS ceiling under today’s rules. Second, it helps you see the size of the gap you may need to cover if federal caps tighten after July 1, 2026.

Planning Decision	What To Verify	What It Changes
Start date	Your first possible disbursement date	Can determine which borrowing rules apply
Program switch	Whether switching triggers “new borrower” status	May reduce federal borrowing options after July 2026
Half-time status	Your school’s half-time definition for grad students	Affects eligibility and disbursement timing
Credit readiness	Recent delinquencies or major negative items	Denial can add steps and delay disbursement
COA makeup	Does COA include required insurance, clinical fees, equipment	Sets the ceiling for federal borrowing
COA adjustment	What documentation your school needs for higher costs	Can increase certified borrowing space under current rules
Origination fee	Net amount after fee deduction	Prevents surprise shortfalls in your refund plan
Cash-flow plan	Refund timing versus monthly bills	Prevents late fees and credit strain during the term
Backup funding	Assistantships, employer help, savings, private credit	Fills gaps if federal rules change for your status

Denied For Adverse Credit: Your Real Options

A Grad PLUS denial often feels final, yet federal rules give you paths back to eligibility. StudentAid.gov spells out the steps: add an endorser, document extenuating circumstances, and complete PLUS credit counseling after the denial. StudentAid.gov options after a PLUS denial

If you’re leaning on an endorser, treat it like co-signing a lease. Put autopay in place and keep your servicer account current, since a missed payment can damage both credit files.

If you’re using the extenuating-circumstances route, your job is clarity. Provide documents that show the issue is resolved, then write a brief explanation that matches the paperwork. Keep it factual and easy to scan.

Funding Plans If Your Post-July Borrowing Is Capped

If federal caps reduce what you can borrow, you have three levers: lower the cost, change timing, or bring in a new funding source. Most people mix all three.

Lower the cost without wrecking your schedule

• Ask your department about assistantships, tuition waivers, and paid placements tied to your track.
• Audit recurring costs. Parking, meal plans, and required software can swing a budget by hundreds per month.
• Pick housing with commute costs in mind. A cheap rent far away can cost more once transit or car expenses hit.

Use timing to your advantage

• If your school offers summer starts, ask whether your first disbursement can land before the cutoff date.
• Avoid unnecessary leaves that change your enrollment record and delay graduation.
• If you must pause, ask what counts as continuous enrollment for your program.

Bring in another source carefully

• Employer tuition benefits can replace borrowing in smaller chunks, term by term.
• Scholarships and service-based aid can fit health, education, and public service tracks.
• Private student loans can fill a gap, yet approval and pricing depend on credit and income. Compare total repayment, not teaser rates.

Option	Best Fit	Main Tradeoffs
Direct Unsubsidized (grad)	Base funding for most programs	Capped borrowing; interest accrues from disbursement
Grad PLUS (pre-July 2026 rules)	Closing a COA gap when eligible	PLUS credit review; fee reduces net disbursement
Assistantship or waiver	Lowering tuition and earning a stipend	Competitive; workload can be heavy during practicum terms
Employer tuition help	Working while studying	Grade requirements or payback terms may apply
Private student loan	Filling gaps after federal caps	Credit-based terms; fewer federal protections

A Tight Checklist For Spring And Summer 2026

1. Ask your school what date counts as your first Grad PLUS disbursement for your program.
2. Confirm whether a program switch, dual degree, or added certificate changes your borrower category.
3. Pull your credit reports early and dispute any clear errors before you apply.
4. Budget using net disbursement after the origination fee.
5. Write down a fallback plan for any gap after July 1, 2026: assistantship, employer help, savings, or private credit.

If you do these five things, you’ll know where you stand before deadlines hit and before tuition bills turn into emergency borrowing.