The U.S. Department of Education has officially released the final RISE (Reimagining and Improving Student Education) rule, introducing comprehensive updates to federal student loan programs under Title IV. This final rule reflects statutory changes and establishes a new framework for how students and families borrow and repay federal loans going forward.
The rule is now published in the Federal Register, which serves as the official and complete source for regulatory language and implementation details. Institutions and stakeholders should review that publication for full guidance.
Key Highlights of the Final Rule
New Federal Loan Limits
- Undergraduate limits are unchanged, but loan limits are prorated for any student not enrolled full-time. This process is called the schedule of reductions (SOR).
- Graduate student loans are capped annually at $20,500, with an aggregate cap of $100,000;
- Professional student loans are capped annually at $50,000, with an aggregate cap of $200,000;
- Parent PLUS borrowers are capped annually at $20,000, with an aggregate cap of $65,000 per dependent;
- All borrowers who receive a loan made on or after July 1, 2026, are subject to an aggregate lifetime loan limit of $257,500, with some exceptions:
- Parent PLUS loans made to a borrower for their dependent students are excluded from a borrower’s lifetime limit.
- Grad PLUS loans that a borrower has received will be included in this new aggregate lifetime limit, unless the borrower qualifies for the interim exception
discussed below, in which case they will continue to be subject to the former (preAct) limits during the interim exception period- Interim exception: For borrowers enrolled in a program before July 1, 2026, and who have already received a loan for that program, an interim exception to the new loan caps will apply. Under this exception, borrowers may continue borrowing under the prior (pre-Act) annual, aggregate, and lifetime loan limits for the lesser of three years or their expected time to credential (defined as the period determined by subtracting from the program length the portion of the program the borrower has already completed), provided that they remain continuously enrolled. If a borrower ceases enrollment or withdraws from the program, they will no longer qualify for the interim exception and will instead be subject to the new annual, aggregate, and lifetime loan limits.
- The regulations also eliminate the ability for new Grad PLUS loans to borrowers who do not qualify for the interim exception.
Definition of Professional Students
For the purposes of loan limits, Congress required the Department to use a narrow and limited definition to determine which programs would be eligible for higher loan limits for “professional students.”
- The definition includes a list of 11 core program fields: 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.).
The Department’s definition also contains a multi-part test that other programs must meet to be eligible for the higher loan limits. To be classified as a professional degree, the degree:
- Signifies both completion of the academic requirements for beginning practice in a given profession, and a level of professional skill beyond that normally required for a bachelor’s
degree; - Is generally at the doctoral level, and that requires at least six academic years of postsecondary education coursework for completion, including at least two years of postbaccalaureate level coursework;
- Generally requires professional licensure to begin practice; and
- Is within a four-digit Classification of Instructional Programs (CIP) code in the same intermediate group as the core list of 11 program fields.
Simplified Repayment Structure
The final rule significantly reduces the number of repayment options, replacing the current system with two primary plans for new borrowers:
- Tiered Standard Repayment Plan
- Provides fixed monthly payments over a period ranging from 10 to 25 years, based on the borrower’s outstanding principal balance (10 years for
less than $25,000; 15 years for $25,000-$49,999; 20 years for $50,000-$99,999; and 25 years for $100,000 or more). - Borrowers with higher loan balances have more time to repay.
- Monthly payments are set at a minimum of $50, helping borrowers make progress toward reducing their balance.
- Provides fixed monthly payments over a period ranging from 10 to 25 years, based on the borrower’s outstanding principal balance (10 years for
- Repayment Assistance Plan (RAP)
- A new income-driven repayment option
- Replaces multiple existing IDR plans with a single, streamlined framework
- Payments are based on income, with built-in assistance for borrowers with lower earnings
These plans will be available to new and current borrowers beginning on July 1, 2026.
Broader Program Changes
Additional high-level updates included in the final rule:
- Adjustments to loan eligibility and borrowing structures
- Changes to loan consolidation provisions
- Updates to deferment and repayment-related processes
- Standardization of rules across loan programs to improve consistency and clarity
Resources
- Federal Register: Reimagining and Improving Student Education: Federal Student Loan Program
- Press Release: U.S. Department of Education Finalizes Landmark Rule to Lower College Costs and Simplify Student Loan Repayment
- Fact Sheet: Trump Administration Implements Student Loan Provisions of the Working Families Tax Cuts Act