Loan Cliff

Loan Cliff · Methodology

How We Calculate Your Gap

Every number on Loan Cliff traces back to a public data source. This page explains exactly where those numbers come from and how the gap is computed.

The Core Formula

Your funding gap is the difference between what your program costs and how much you can borrow under the new federal limits:

Total Cost of Attendance (COA)
− New Federal Loan Cap
= Funding Gap

Data Sources

Cost of Attendance — IPEDS

Institutional cost-of-attendance figures are sourced from the Integrated Postsecondary Education Data System (IPEDS), published annually by the U.S. Department of Education. We use the most recent available academic year data (2023–24) as the baseline and apply a 4% annual inflation adjustment for future start-year projections.

Federal Loan Caps — Big Beautiful Bill (2025)

The “One Big Beautiful Bill” signed into law in 2025 eliminates the Grad PLUS loan program effective July 1, 2026, and replaces it with a new Unsubsidized Stafford loan for graduate students with revised annual and aggregate caps by program category. We use the caps as enacted:

  • Professional programs (MD, JD, MBA, PharmD, DDS, DVM)$50,000/yr
  • Research doctoral programs (PhD)$20,500/yr
  • Master's programs (MS, MA, MEd, OD)$20,500/yr

Program Length

Standard program lengths are used for total-gap calculation: MD (4 yrs), JD (3 yrs), MBA (2 yrs), PharmD (4 yrs), DDS (4 yrs), DVM (4 yrs), PhD (5 yrs), MS/MA/MEd/OD (2 yrs). These reflect the median completion time reported in IPEDS graduation rate data.

School Coverage

Loan Cliff covers 1,788 Title IV-eligible institutions that report graduate enrollment to IPEDS. Each school is matched to the programs it offers based on its CIP code submissions. Schools that offer a program but did not report graduate COA separately are excluded from that program's calculation.

Limitations

  • COA figures are institutional averages and will vary by individual living situation, residency, and enrollment status.
  • Scholarship, fellowship, and institutional grant aid are not factored in. Many students will receive aid that reduces their personal gap.
  • Interest accrual, origination fees, and income-driven repayment impacts are not modeled in this calculator.
  • Future legislative changes may alter the federal loan caps shown here. Figures reflect the law as enacted.
  • We are not a financial aid office. These numbers should be used as a planning estimate, not a financial commitment.

Update Schedule

COA data is refreshed each fall when IPEDS releases the prior-year survey results. Federal cap figures are updated immediately upon legislative changes. The current dataset reflects IPEDS 2023–24 and loan limits as of July 2026.

Sources: National Center for Education Statistics (NCES) IPEDS Data Center · U.S. Department of Education Federal Student Aid · One Big Beautiful Bill (Pub. L. 119-__) § 2001 et seq.