OBBA Federal Loan Changes

As you may have learned, in July 2025, Congress passed legislation eliminating the Federal Direct Grad PLUS Loan program. Starting July 1, 2026, Grad PLUS loans will no longer be available to new graduate and professional (G&P) student borrowers.

The School of Medicine and Yale’s University Financial Aid Office have been working to understand the impact of this legislation and identify alternative loan options for impacted students.

Legacy Borrowers

Legacy provisions will allow most returning student borrowers to continue accessing Grad PLUS loans through the end of their current program of study or July 1, 2029, whichever comes first.

Eligible students must be registered and in attendance for the entirety of spring 2026 and have borrowed federal student loans for their current program of study. Legacy borrowers who withdraw, take a leave of absence, or otherwise interrupt regular enrollment before the end of the spring term 2026 or at any future point prior to completion of their program of study, will lose the ability to borrow new Federal Grad PLUS loans.

Joint Degree Students, Students Returning from Leave or Non-Enrollment, Students in Five-Year Degree Programs (Combined bachelor’s/master’s program)

The elimination of the Grad PLUS loan program will affect some continuing students, including joint degree students moving from one degree program to another on or after July 1, 2026, students returning from a leave or other period of non-enrollment on or after July 1, 2026, as well as students in five-year degree programs who have not yet begun the graduate portion of their program.

Eligible MD students who take a flex year will lose legacy provisions for their final chronological year.

If any of these situations apply to you, please review the University Financial Aid website, which provides information about alternative loan options, including some that may be comparable to or better than the Grad PLUS loan. Please also reach out to the School of Medicine’s financial aid office to discuss financing options, eligibility, enrollment, and more.

As you review your options, I want to assure you that the School of Medicine and other colleagues across the university are here to guide you.