In July 2025, Congress passed legislation that eliminates the Federal Grad PLUS Loan program as of July 1, 2026.
Information for impacted students
Beginning July 1, 2026, graduate and professional students beginning a new program of study will be unable to access the Federal Grad PLUS Loan program. This will include joint degree students moving from one degree to another, students returning from a leave or other period of non-enrollment in the 2025-2026 academic year, as well as students in five-year degree programs who have not yet begun the graduate portion of their program.
Both new and returning students are encouraged to reach out to the financial aid office at their respective Yale school to discuss their eligibility and loan options.
Legacy provisions
Under a legacy provision, returning students who are continuing in an existing program of study will remain eligible for new Federal Grad PLUS Loans through the end of their program of study or for three academic years, whichever comes first. Eligible students must have been registered and in attendance in the spring of 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 will lose the ability to borrow new Federal Grad PLUS loans. Legacy borrower eligibility may also be negatively impacted by enrolling less than half-time or failing to meet the appropriate time-to-credential for their given program.
Note: Students pursuing Graduate and Professional programs of study are strongly encouraged to maximize the Federal Unsubsidized Loan Program for Graduate and Professional students before pursuing alternative loan options.
All Yale Graduate & Professional students are encouraged to speak directly with the Financial Aid Office at their respective Yale School to thoroughly review all available financing options.
Alternatives to Federal Grad PLUS Loans
In light of the termination of the Federal Grad PLUS Loan option, Yale continues to explore multiple payment and financing options comparable to or better than the Grad PLUS Loan.
The first such offering is available through SoFi.
Eligible Yale students in graduate and professional programs of study may apply for loans with SoFi or other alternative lenders beginning with the 2026-2027 academic year. More information is available in the FAQs below.
Additional Loan Options
In addition to the loan program offered through SoFi, Yale Graduate and Professional students are welcome to explore other alternative loan options, which are listed by program of study on the ELM Select website. Many of these programs offer competitive interest rates and program-specific repayment benefits, and meet Yale’s standard for accessibility with expanded eligibility criteria that make financing available to more students.
Please revisit this site for ongoing updates on other loan offerings. Yale does not endorse, recommend, or promote SoFi or any of the lenders included in ELM Select. Yale students are not obligated to borrow from these lenders and may select other lenders.
Additional Information
Yale Graduate and Professional students have several alternative loan options in addition to the loan programs offered through SoFi. Students interested in exploring other alternative loan options should consider reviewing the options available for their program of study via the ELM Select website.
Students pursuing Graduate and Professional programs of study are also strongly encouraged to maximize the Federal Unsubsidized Loan Program for Graduate and Professional students before pursuing alternative loan options.
The Federal Unsubsidized loan interest rates are currently 7.94% with a 1.057% origination fee. SoFi offers Yale Graduate & Professional students who qualify, interest rates from 3.49% to 7.99% and no origination fee. Rates with other lenders can vary greatly, but students should review options at ELM Select.
Federal Unsubsidized loans are capped at $20,500 annually for graduate students and $50,000 annually for students in professional degree programs (MD, Law, Divinity, many PhD programs). These loans also have lifetime caps of $100,000 and $200,000, respectively. SoFi and several other lenders allow students to borrow up to the full cost of attendance and offer no lifetime or annual borrowing limits. Many other alternative lenders have annual, lifetime, or program-specific borrowing limits. Students are encouraged to review the lenders available at ELM Select and contact each lender for their specific limits.
Federal Unsubsidized student loans offer varying repayment periods that go up to 25 years. SoFi offers loan repayment in 5-, 7-, 10-, & 15-year increments, with up to 20-year repayment options for medical program graduates. Other alternative lenders may offer similar loan repayment terms. Students are encouraged to review the lenders available at ELM Select and contact each lender for their specific repayment options.
Federal student loan borrowers are all given a standard 6- month grace period after graduation before repayment begins and have many deferment and forbearance options that can be found HERE.
Yale Graduate and Professional students who borrow with SoFi will be eligible for between 6 and 36 month grace periods depending on their program. Please see the chart below for applicable grace period lengths.
| Program | Grace Period |
| Graduate | 6 months |
| Graduate Certificates | 6 months |
| MBA | 6 months |
| Graduate Health Professions | 9 months |
| Law | 9 months |
| Medical (MD) | 36 months |
SoFi also offers multiple forbearance and deferment options. These can be sought for a number of scenarios, including judicial clerkships, medical residency, financial hardship, and military service deployments.
Other alternative loan sources may offer similar grace, deferment, and forbearance options. Students are encouraged to review the lenders available at ELM Select and contact each lender for their specific grace, deferment, and forbearance options.
Previous loan defaults, poor credit history, recent bankruptcy, foreclosure, tax lien, under wage garnishment, or legal action/fraud on prior loans may prohibit a student from meeting the eligibility standards to participate in many of the loan programs available.
Current and incoming graduate and professional students should contact their financial aid office to discuss financing options, eligibility, enrollment, and more.
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