On July 4 last year, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, sweeping legislation that touches on almost every aspect of American life, from immigration to taxes to education. One notable provision involves caps on federal student loan borrowing, touching on one of Trump’s campaign promises to lower costs for higher education by restructuring federal funding.
Starting July 1, federal student loans will be capped at $100,000 on graduate degrees and $200,000 on professional degrees. Previously, students could finance advanced degrees with unlimited Grad PLUS loans, which were eliminated in the bill.
