"For years, students could borrow essentially unlimited funds to pay for graduate education, thanks to a program known as Grad PLUS that capped loans at the cost of attendance. Republicans in Congress and other critics have argued that colleges took advantage of this program and raised their prices, fueling the student debt crisis. Loans for grad students make up nearly half of the federal loan portfolio."
"Congress eliminated Grad PLUS over the summer and will cap how much students can borrow for graduate education. Lawmakers also limited Parent PLUS loans, which were also previously uncapped and offered families a way to make up the gap and pay for college. Both changes came out of the One Big Beautiful Bill Act. Beginning next summer, most graduate programs will have a federal loan cap of $100,000, with exceptions for a scaled-down number of professional programs with a limit set at $200,000."
Most large graduate-program colleges lack clear plans or public communication about complying with imminent federal loan caps that begin next July. For years, Grad PLUS allowed essentially unlimited borrowing up to cost of attendance, contributing to rising prices and large share of federal student debt. Congress eliminated Grad PLUS and limited Parent PLUS through the One Big Beautiful Bill Act. Beginning next summer, most graduate programs face a $100,000 federal loan cap, with certain professional programs capped at $200,000. The changes create uncertainty, could reduce graduate enrollment, endanger some programs, and compound pressures from research funding cuts and shifting doctoral admissions.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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