#graduate-borrowing-caps

#graduate-borrowing-caps

setting in motion significant changes in student borrowing rules that will have huge implications for students, institutions and the economy. Among the negotiated points were directives in the One Big Beautiful Bill Act designed to address the $1.8 trillion student debt crisis by canceling Grad PLUS loans-used by many students to pay for grad school-and putting caps on the amount of money students can borrow: $200,000 for professional degrees, capped at $50,000 annually, and $100,000 for graduate programs, limited to $20,500 a year.

The negotiations, which had been going on since October, focused on two areas: replacing existing income-driven repayment plans and instituting new borrowing caps on graduate and professional student loans. The negotiating committee reached a consensus on the law's changes, and the department will begin drafting a rule and publishing it for public comment early next year. The changes are scheduled to take effect in July 2026.