This bill makes significant changes to how graduate and professional students can borrow federal student loans. Starting June 30, 2025, graduate and professional students will no longer be able to take out Direct PLUS Loans, which are federal loans that allow borrowers to borrow up to the full cost of attendance at their school. Instead, the bill caps how much these students can borrow through Direct Unsubsidized Loans—graduate students would be limited to $65,000 total (on top of what they borrowed as undergraduates), while professional students like those in law or medical school would be capped at $130,000 total.

Colleges and universities must inform their current and prospective graduate and professional students about this change before the June 2025 deadline. Schools also have the flexibility to set their own lower borrowing limits if they choose. The practical effect is that graduate and professional students will have less access to federal borrowing and may need to explore other funding options like private loans, scholarships, or employer assistance to cover education costs that exceed the new limits.

Graduate Opportunity and Affordable Loans Act

Tuberville, Tommy

Graduate Opportunity and Affordable Loans ActThis bill limits federal student loan borrowing for graduate and professional students.Specifically, the bill terminates the ability of a graduate or professional student to receive a Direct PLUS Loan. Institutions of higher education (IHEs) must notify their prospective and enrolled graduate and professional students that Direct PLUS Loans terminate on June 30, 2025.Additionally, the bill establishes the aggregate loan limit for Direct Unsubsidized Loans as $65,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $130,000 for a professional student (in addition to the amount borrowed for undergraduate education).The bill allows IHEs to set lower loan limits.