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Going to graduate school can supercharge your career.

But the cost can be prohibitive without some help, and soon there will be limits on how much can be borrowed through federal loans, potentially making it harder for many students to afford a master’s or doctoral degree.

“These new limits really are going to be quite the culture shock for the new students and how they borrow from the federal government," personal finance expert Tiffany Aliche, aka “The Budgetnista,” recently told SoFi’s Liz Thomas.

Of course, the Education Department says the whole point of the new limits is to tamp down the cost of tuition and help students avoid “insurmountable debt.” If they’re successful, grad school could in theory become more affordable.

But in the meantime, these caps take effect July 1: New graduate student borrowers won’t typically be able to take out more than $20,500 in federal loans per year ($100,000 in total.) If they’re pursuing a “professional” degree in a field like law or medicine, the limit will be $50,000 per year ($200,000 in total).

This is very different from the Grad PLUS program that’s being phased out, where students were allowed to use loans to cover up to the full cost of attendance — no matter how high. In fact, in the 2019-2020 school year, 56% of dentistry students, 41% of medical students, and 26% of fine arts students borrowed more than the new limits would have allowed, according to an analysis by the Urban Institute.

So what does this mean if you’re ready to become a doctor or dentist, or pursue a PhD or MBA?

First, figure out what you’re working with. Research the basic numbers: tuition, fees, supplies, and living expenses while you’re in school, plus the income you’ll be forgoing when you’re not able to work full-time.

Then fill out the Free Application for Federal Student Aid (FAFSA) so the schools you’re planning to apply to know your financial situation.

Once you’re accepted into a program, you’ll see how much the school is going to expect you to pay. If you’re going to fall short, that’s your cue to explore other options. These are five potential workarounds:

1. Weigh the prestige factor. In some fields, going to a school with a ‘name’ can be important, but it’s worth evaluating what you’re paying for. Could you attend a state university to save money? How about getting an online degree? It’s important to weigh your end goal too. Do you actually need a master's degree, or would a graduate certificate suffice? Certificates are typically shorter and cheaper, and there may be other federal funding available for some of them.

2. Ask your employer to foot some of the bill. Some companies, especially in fields in demand (like education, healthcare, and tech), may offer tuition assistance as a benefit of working there. Some may even pay for your entire degree in exchange for a specific commitment (e.g., you agree to stay with the company for x number of years after you graduate). Check your employee handbook or HR portal to see what may be available.

3. Explore work contracts. Depending on your field of interest, scholarships from the National Health Service Corps (NHSC) or TEACH Grants could cover a chunk of your costs. Unlike conventional scholarships, these are structured more like work contracts. You might agree to work in an underserved area or high-need field for several years in exchange for the government paying your tuition or wiping out your loans.

(Note: This is different from the Public Service Loan Forgiveness (PSLF) program, where the money is borrowed.)

4. Borrow (briefly) at no interest. Most schools offer interest-free tuition payment plans that let you make installment payments over a semester or even a year. The pressure is still much bigger than if you were spreading your costs out over 10 or 20 years, but it’s better than paying interest on the full cost upfront. Millions of students use these each term, according to the Consumer Financial Protection Bureau.

5. Consider private student loans. Federal loans offer certain safety nets that private loans don’t (such as income-driven payment plans), but they’re not always less expensive, especially if you have a strong credit score. Some lenders (SoFi included) offer competitive rates and don’t charge an origination fee. The key is to shop around and only borrow what you need.

*Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. View payment examples. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 2/5/26 and is subject to change.

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