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Planet Money · Wednesday, July 1, 2026

Federal Student Loan Policy: A Shift Back to Caps for Graduate Students

The Department of Education is reversing its 2006 policy of offering unlimited federal loans to graduate students, reinstating caps starting July 1st. This marks a return to policies first implemented in the 1960s, with new annual limits for most graduate programs set at just under $21,000.

companyDepartment of Education

The tape

3 quotes
Then 20 years ago, in 2006, the department of Ed swung the other way and started offering unlimited loans, which lasted until today.
Kenny Malone
And now, the department of Ed is dismantling that unlimited loan program. And we're going back to caps.
Kenny Malone
These new caps are just shy of $21,000 per year for most kinds of grad programs.
Kenny Malone
Heard on Planet Money — “Can the Trump administration make college cheaper?, published Wednesday, July 1, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.04