How To Pay for a Master's Degree Without Grad PLUS Loans

You're planning a master's degree, and the federal loan that used to cover whatever your other aid didn't is gone. If you start a master's program now, federal loans top out at $20,500 a year and $100,000 in total for most graduate students, with no Grad PLUS loan for the rest, so any gap has to come from a lower-priced program, your employer, an assistantship, scholarships, paying as you go or, last, a private loan.

The gap is smaller than it sounds for many online programs, and larger for expensive or accelerated ones. The federal rules below were checked on November 10, 2026, on StudentAid.gov and the Department of Education's FSA Partner Connect site.

Step 1: Confirm Whether the Old Rules Still Apply to You

StudentAid.gov's One Big Beautiful Bill Act updates page says Direct PLUS Loans for graduate and professional students are no longer available to new borrowers. The change took effect on July 1, 2026.

Some current students keep the old limits under an interim exception. According to StudentAid.gov's definitions page, you qualify only if all of these are true:

• You were enrolled in your program on June 30, 2026.
• You received at least one Direct Loan for that program before July 1, 2026. It didn't have to be a Grad PLUS loan.
• You're still in the same program, for the same credential, at the same school, and haven't stopped enrolling since July 1, 2026. An approved leave of absence doesn't count as a break.

If you qualify, you can keep borrowing $20,500 a year in Direct Unsubsidized Loans plus Grad PLUS up to your cost of attendance, for the lesser of three academic years or the time left in your program. You can't opt out of the exception to get a higher new limit. Changing concentrations or schools may end it, so ask your aid office before you switch.

If you're starting a new master's, even after finishing an earlier one with Grad PLUS, the new limits apply. For how the 2026 changes affect repayment of the loans you do take, see what new student loan borrowers get under the 2026 rules.

Step 2: Know Your New Federal Limit

The Department's loan limits FAQ for schools (May 20, 2026) and StudentAid.gov list these limits for students who don't qualify for the exception:

A few rules can lower what you actually get:

• Most master's students are "graduate," not "professional." A professional degree generally signals readiness to practice a licensed profession and is usually at the doctoral level, such as law, medicine or pharmacy. StudentAid.gov's current list also includes some master's-level programs, such as physician assistant, occupational therapy and registered nursing (MSN), but court orders issued on June 24 and October 16, 2026, have changed that list, and the Department's announcement on the court orders says those designations are interim and may change. Ask your school which category your program falls in.
• Part-time study lowers the yearly limit. For loan periods that begin on or after July 1, 2026, the annual limit is reduced in proportion to how far below full time you're enrolled. Many working adults study part time, so ask the school what its full-time load is and what your limit would be.
• Your undergraduate loans count toward the lifetime limit. The $257,500 cap includes undergraduate loans and any Grad PLUS loans you received earlier, even if they're paid off.
• You can't borrow more than your cost of attendance minus other aid, and a school can set a lower limit for a program.

Step 3: Compare the Program's Total Cost With the Limit

Because Grad PLUS is gone, the annual limit is usually what matters, not the $100,000 total. A program that takes two full-time years gives you up to two years of $20,500. A one-year accelerated program gives you one.

This table is an illustration, not a quote from any school. It uses a 36-credit master's (a common length) at different per-credit prices, counts tuition only, and assumes full-time enrollment, the full annual limit, and no other aid:

Two things the table leaves out can widen the gap. First, fees, books and living costs are part of your cost of attendance, and if you use loans for them, less is left for tuition. Second, part-time enrollment lowers each year's limit, although spreading a program over more years can also spread out the cost. Use the school's own cost of attendance and your enrollment plan to run your numbers.

Step 4: Choose a Program Priced Within Reach

The cheapest gap to close is the one you never create. The CollegeHub directory lists more than 360 master's programs across 12 of its 18 schools, from Arizona State University's 161 to smaller catalogs at other schools. Two directory schools publish a single graduate price per credit that makes the math easy:

• $675 per credit: Colorado State University Global lists this rate for all graduate courses for 2026–27 on its tuition page, and says the rate stays the same from your first class to your last under its tuition guarantee, as long as you stay continuously enrolled.
• $600 per credit: Liberty University says on its online master's page that most online master's programs are billed at this rate for full-time students in 2026–27, with a $450 rate for its Master of Arts in Teaching and some Master of Education programs and a $310 rate for eligible military students and spouses.

At those rates, a 36-credit program would come to $21,600 to $24,300 in tuition, well within two years' worth of the federal annual limit ($41,000). Eight of the 12 directory schools with master's programs publish an annual tuition range, which isn't specific to graduate study, and the other four list tuition as varying by program. Ask any school for the per-credit graduate rate and total credits for your exact program.

If you're considering nursing, the directory lists about 20 nursing master's programs across five schools. Whether a given MSN program counts as professional under the current court orders affects whether your limit is $20,500 or $50,000 a year, so ask the school's financial aid office before you enroll.

Step 5: Use Your Employer's Tuition Assistance

Under Section 127 of the tax code, an employer can pay up to $5,250 a year toward your education tax-free, and the IRS's educational assistance FAQ says that includes graduate courses. Over a two-year master's, that's up to $10,500 you wouldn't borrow. Employer policies vary on approval, grades and repayment if you leave; our guide to using employer tuition assistance for an online degree covers what to check and how it interacts with your financial aid.

Step 6: Look for an Assistantship

A graduate assistantship pays you to teach, do research or work in a university office, and often reduces or covers tuition. At Penn State, for example, the graduate school's information for graduate assistants says an assistantship includes a stipend, tuition remission and health insurance premium subsidies, and a half-time appointment carries about 20 hours of work a week.

Assistantships are generally tied to campus-based programs, so fully online master's programs may offer few or none. Ask each program directly whether it has assistantships, whether online students can hold them, and how many are awarded each year. Benefits vary by school and by appointment, so read the offer letter for what's covered.

Step 7: Apply for Scholarships and Fellowships

StudentAid.gov's scholarships page notes that scholarships come from schools, employers, professional associations, community groups and others, and that some are aimed specifically at graduate students. For a master's, start with:

• The program's own scholarships and department awards.
• Professional associations in your field.
• Your employer, union or professional licensing group.
• Your state, if it offers awards for teachers, nurses or other in-demand fields.

You never have to pay to find a scholarship. Treat any service that charges a fee as a red flag.

Step 8: Pay as You Go

Many working students fill the gap by paying part of the cost from their income each term. That can mean taking one course at a time, using the school's monthly payment plan or setting aside a fixed amount from each paycheck. CSU Global, for example, lists a $25 enrollment fee for its payment plan. Taking fewer credits lowers your federal limit, but it also lowers each term's bill, so compare the per-term cost with what you can pay.

Step 9: Treat Private Loans as a Last Resort

If you still have a gap, a private loan from a bank, credit union or state agency may cover it. StudentAid.gov's federal vs. private loans page lists the differences to weigh:

• Private loans are generally more expensive than federal loans, and rates can be fixed or variable.
• They often require an established credit record or a cosigner.
• Some require payments while you're still in school.
• They can't be consolidated into a federal Direct Consolidation Loan and don't offer federal income-driven plans or Public Service Loan Forgiveness.
• You need to check for prepayment penalties.

Borrow only the gap, compare several lenders' total costs, and use your federal Direct Unsubsidized Loan first.

Your Funding Plan Checklist

1. Ask the aid office whether you qualify for the interim exception, and whether your program is graduate or professional.
2. Get the program's total credits, per-credit rate and full cost of attendance.
3. Calculate your federal limit for your enrollment level and the number of years you'll study.
4. Subtract employer assistance, scholarships and any assistantship.
5. Decide how much you can pay each term from income.
6. Borrow privately only for what's left, after comparing lenders.

Before you commit, our guide on what to verify before choosing a graduate program covers total cost, funding and outcomes in more depth.

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Comparing master's programs by cost? Find accredited graduate programs and compare tuition and funding options at GraduateDegrees.info.

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