Grad student loans could soon be capped. Here’s what that could mean for you
How the ‘Big, Beautiful Bill’ will affect grad student loans
- The House of Representatives is advancing the GOP’s “Big Beautiful Bill”, which is set to significantly alter how graduate students finance their higher education.
- The bill proposes eliminating the federal Grad PLUS loan program starting July 2026, replacing it with increased but potentially insufficient limits on federal Stafford loans.
- Graduate students would face annual borrowing limits of $20,500 and a lifetime cap $100,000, while professional students could borrow up to $50,000 annually $200,000 lifetime maximum.
- Critics warn the changes could force students into private loans, deter them from pursuing advanced degrees, and exacerbate shortages in high-demand sectors like rural healthcare.
- While Republicans argue the limits will help control college costs, President Donald Trump is scheduled to sign the bill, which will also affect borrowers on the Biden-era SAVE plan from next summer.