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A new federal law known as the “Big Beautiful Bill” is set to reshape how students finance graduate and professional education.
Passed by Congress and signed by President Trump on July 4, the legislation introduces strict borrowing caps on federal student loans and eliminates the Grad PLUS loan program. These changes, taking effect in next year, will significantly reduce the amount students can borrow to pursue advanced degrees, potentially making graduate school inaccessible for many from low-to-middle income backgrounds.
Under the new rules, graduate students will be limited to borrowing $20,500 per year, with a lifetime cap of $100,000. Professional students, such as those attending law or medical school, will have a higher annual limit of $50,000 and a lifetime cap of $200,000. The removal of Grad PLUS loans, previously used to cover the full cost of attendance, means students who can’t rely on family financial support may be forced to turn to private lenders, often with stricter terms and the need for a cosigner.
“It’s going to impact where a lot of students are not going to be able to afford graduate programs,” said FIU Associate Director of Financial Aid for the College of Business Fabiola Ortega. “Especially those from low to middle income backgrounds.”
Along with tighter borrowing limits, the law narrows repayment options to two plans and eliminates deferment protections for future borrowers. University advisors are already warning that the bill could push many students to delay or forgo graduate education, while schools like FIU are seeking to expand scholarships in anticipation.
Although the changes won’t take effect until July 2026, students preparing for graduate school say they’re already feeling the financial strain.
