Thinking About a Doctorate? Here’s How the New Loan Rules Affect You

By: Kari Bernard, PhD, PA-C

Director, Doctor of Medical Science Program at The College of Idaho

Confused about how new federal financial aid rules affect your doctorate plans? You’re not alone. The recent changes are tough to deconstruct, especially for practicing PAs. Here’s a clear breakdown of what matters.

What changed under the One Big Beautiful Bill Act

Before this legislation, PA doctoral students could use both Direct Unsubsidized Loans and Graduate PLUS loans.

Starting July 1, 2026¹:

• You can still access Direct Unsubsidized Loans up to $20,500 per year
• New federal loan caps apply:
  • $100,000 total for graduate loans (excluding undergrad)
  • $257,500 lifetime limit
• Prior Graduate PLUS loans do not count toward these limits

Graduate PLUS loans, previously used to cover remaining tuition, are largely being eliminated (with rare exceptions). While that reduces borrowing flexibility, it also removes loans that often carried 7.5–9% interest rates and >4% origination fees.²

What replaces Graduate PLUS loans?

If you exceed federal limits, private student loans are now the primary option. Lenders like Sallie Mae³ and College Ave⁴ currently offer:

• Fixed rates starting around 2.89%
• Variable rates as low as 3.75%

These rates can be more competitive, but they come with less borrower protection than federal loans. This fact is important to consider but may be less incidental with shorter doctorate programs that accommodate practicing PAs.

Other ways to fund your degree

Many PAs don’t rely on loans alone to go back for a doctorate. Consider combining funding sources:

• Employer support: Use CME funds, tuition reimbursement, or employer-sponsored scholarships
• Military benefits: GI Bill⁵ and spousal programs⁶ may offset costs
• Payment plans: Spread tuition into manageable monthly payments
• Scholarships: Available through schools, professional organizations, and specialty groups⁷

The College of Idaho’s approach to affordability

At The College of Idaho, we’ve built our DMSc program with working PAs in mind, academically and financially. Here’s how we help:

• Up to 36 Category 1 CME credits earned through coursework
• Employer partnerships that support tuition reimbursement
• Military benefit eligibility, including GI Bill funding
• Federal aid access through our semester-based structure
• Interest-free monthly payment plans (via Nelnet)⁸
• Targeted scholarships, including:
  • Idaho Legacy of Healing (ISU alumni, preceptors, and faculty)
  • WWAMI Healthcare Steward (MEDEX alumni, preceptors, and faculty)
  • PA Military Service Scholarship
  • PA Clinical Leadership (affiliated organizations)

Bottom line

Affordable doctoral education is still within reach. It just requires a more strategic mix of funding sources.

If you’re considering your next step, now is a good time to explore how a DMSc can fit into your career and your financial plan.

Register for an upcoming Virtual Info Session or explore our DMSc program online to learn more about our specialty tracks and accelerated pathways.

References

1. National Association of Student Financial Aid Administrations. Big Changes to Federal Student Loans: What Graduate Students Need to Know. 2026. Accessed April 9, 2026. https://www.nasfaa.org/uploads/documents/OB3_What_Graduate_Students_Need_to_Know.pdf
2. Grad PLUS loans. Federal Student Aid. Accessed April 9, 2026. https://studentaid.gov/understand-aid/types/loans/plus/grad
3. Graduate School Loan for Master’s or Doctorate. Sallie Mae. Accessed April 9, 2026. https://www.salliemae.com/student-loans/graduate-student-loans/graduate-school-loan/
4. Graduate Student Loans. College Ave. Accessed April 9, 2026. https://www.collegeave.com/student-loans/graduate/
5. VA education and training benefits. Veterans Affairs. March 13, 2026. Accessed April 9, 2026. https://www.va.gov/education/
6. Military spouse tuition assistance. Veteran.com. October 3, 2022. Accessed April 9, 2026. https://veteran.com/spouse-tuition-assistance/
7. US Department of Labor. Scholarship finder. CareerOneStop. Accessed April 9, 2026. https://www.careeronestop.org/Toolkit/Training/find-scholarships.aspx
8. Business office. The College of Idaho. Accessed April 9, 2026. https://collegeofidaho.edu/offices/business-office/