Education Department finalizes rule tightening federal student lending
Ben Unglesbee
April 30, 2026
The agency kept a contested definition of “professional” student that excludes fields like graduate nursing and physical therapy from higher loan caps.
Dive Brief:
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The U.S. Department of Education on Thursday released final regulations to tighten the federal student loan system to comply with the massive tax and spending law passed by congressional Republicans last year.
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The final rule largely adheres to language from negotiated rulemaking sessions held late last year. Notably, the regulations stick with a limited and contested definition of “professional student” that excludes major graduate fields such as nursing and education from higher lending caps.
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The regulations also outline the sunsetting of Grad PLUS loans, a narrowed slate of loan repayment options and other changes mandated by the law. Most provisions take effect July 1.
