US EditionEducation Department caps graduate school loans
The rule eliminates the graduate PLUS program and sets new borrowing caps of $20,500 a year for graduate students and $50,000 for professional students.
- On Thursday, The Department of Education finalized new federal student loan regulations stemming from President Donald Trump's "big beautiful bill," the Working Families Tax Cuts Act, signed into law last July.
- The Department restricted the "professional" degree category to 11 specific doctoral programs, defending the narrow definition as providing a "clearer and more uniform boundary" despite significant pushback from academic institutions and stakeholders.
- Graduate degree programs now face annual limits of $20,500 and a $100,000 lifetime cap, while the agency established an aggregate lifetime loan limit of $257,500 including prior undergraduate loans.
- Robert Farrington, founder of The College Investor, warns that while federal loans remain the "best way to go," students exceeding limits face private loans lacking forgiveness options and "inherently more expensive" terms.
- The final regulations take effect July 1, 2026, though students currently enrolled in graduate programs with existing loans remain exempt from these limits for up to three years.
15 Articles
15 Articles
Education Department caps graduate school loans
The U.S. Department of Education announced Thursday that new caps on federal loans for graduate school programs will go into effect July 1. The department said this decision is part of the Trump administration’s efforts to reduce the costs of postsecondary education and streamline the student loan repayment process. Last July, President Trump signed the…
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The Trump administration on Thursday unveiled a regulatory overhaul of the federal student-loan system, streamlining the repayment system and pressuring universities to lower costs by setting borrowing limits on graduate degrees based on earnings potential.
Landmark Rule Change Aims to Cut College Costs, Simplify Student Loan Repayment
The U.S. Department of Education on Thursday finalized a landmark rule aimed at lowering college costs and overhauling student loan repayment, implementing key provisions of President Donald Trump’s Working Families Tax Cuts Act.
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Trump Administration Ends Unlimited Graduate Loans, Imposes Caps to Rein in Tuition Costs
New Education Department rules aim to curb borrowing, simplify repayment, and pressure universities to lower prices. The post Trump Administration Ends Unlimited Graduate Loans, Imposes Caps to Rein in Tuition Costs first appeared on [your]NEWS.
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