The U.S. Department of Education has finalized the RISE rule, set to take effect July 1, 2026, eliminating Grad PLUS loans and imposing new federal borrowing caps on graduate and professional students. Under the rule, graduate students face a USD 20,500 annual limit and a USD 100,000 lifetime cap including undergraduate debt. Eleven professional degree programs qualify for higher limits (USD 50,000 annual, USD 200,000 aggregate), but fields such as advanced practice nursing, physical therapy, social work, and architecture are excluded from that classification. The Association of American Universities criticized the rule, warning it will "make it significantly harder for Americans to attend law school and medical school or to obtain training for professions that require advanced education." AAU associate vice president CJ Powell called the timing devastating for students already in the admissions process. According to PEER Center analysis of NPSAS survey data, the new caps will curtail borrowing for roughly one third of all graduate student borrowers. AAU noted that 40% of graduate students relied on federal loans in 2020, and 28% of recent borrowers exceeded the proposed limits. The DOE frames the rule differently. Citing 1.7 trillion dollars in total student loan debt, with fewer than 40% of borrowers in active repayment, Under Secretary Nicholas Kent positioned the caps as necessary to curb overborrowing, projecting 224 billion dollars in reduced student debt and 409 billion dollars in taxpayer savings. The Department points to data from its fact sheet showing 40% of master's programs have negative return on investment and that total college loans rose 343% since 2005. Students in excluded professional fields now face a choice between private loans with fewer borrower protections and reconsidering their educational plans. AAU has urged Congress to expand the professional degree classification to include programs "relevant to current and future economic and societal needs," particularly in healthcare workforce shortage areas. How institutions adjust mid cycle financial aid packages for fall 2026 will be an early signal of the rule's practical reach.