Montana Grad Students Could Lose Access to a Key Federal Loan Starting This July

If you’ve been looking into graduate school while living here in Montana, there’s a shift on the horizon that could affect how you pay for it. Beginning July 1, new federal borrowing limits are expected to take effect, potentially making it more challenging to cover the full cost of a graduate degree.

Federal Loan Limits Are Getting Stricter for Graduate Students

Under the proposed changes, there would be stricter limits on how much money you can take out in federal loans for graduate school. If you’re heading into a professional program like law or medicine, you could be limited to borrowing up to $50,000 per year, with a total cap of $200,000 over time.

For other graduate programs, the annual borrowing limit would remain at $20,500, with a new lifetime limit of $100,000 added. On paper, that might seem like plenty, but once you factor in tuition, fees, and living expenses, it can disappear fast. And when it does, you’re left covering the difference yourself.

READ MORE: Forbes Ranks Two Montana Schools Among America’s Best Colleges

Grad PLUS Loans May Be Eliminated for New Borrowers

One of the most significant changes involves Grad PLUS loans, which have traditionally helped students cover whatever federal loans didn’t.

Under the new plan, students starting graduate school after July 2026 may no longer have access to Grad PLUS loans. If you’ve already started using them, you may still qualify for a limited time, but new borrowers could be out of luck.

Montana Students May Need to Rethink How They Fund Grad School

If grad school is part of your future, this could mean rethinking your financial game plan. That could mean covering more out of pocket, spending serious time hunting down scholarships, grants, or assistantships, or turning to private loans to fill the gap.

Private loans can help, but they usually come with higher interest rates and far fewer protections than federal options; not a decision to make lightly.

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These Changes Are Close Enough to Affect Decisions You’re Making Today

Even though these changes don’t kick in until July, they could influence decisions you’re making right now. Whether you’re considering a program at Montana State, the University of Montana, or even heading out of state, it’s a good idea to start looking closely at costs and funding options.

For many students here in Montana, the way you pay for grad school could soon look very different from how it does today.