As millions of student loan borrowers settle into the school year, many are stressed about how they’ll pay for their degrees. These students may find that the One Big Beautiful Bill Act, the big tax and spending bill that President Donald Trump signed into law over the summer, could limit how much they can borrow.
Until recently, graduate students could take out two types of federal loans: Direct Unsubsidized Loans, which had a lifetime limit of US$138,500, and Grad PLUS loans, which allowed students to borrow up to the full cost of attendance, minus financial aid.
But Grad PLUS loans will be eliminated next summer, with a three-year transitional period for current borrowers. That will leave only the capped loans for new borrowers, and those loans have new lifetime borrowing limits: $200,000 for students pursuing certain professional degrees, and $100,000 for nonprofessional graduate programs.
