- Termination of the Grad PLUS Loan Program
- Eliminates Grad PLUS Loans (starting July 2026 for new borrowers), which currently allows students to borrow up to the full cost of attendance
- Annual Unsubsidized Loan Limits
- Imposes borrowing caps up to $20,500/annually with a lifetime limit of $100,000
- Borrowers enrolled less than full-time will have their loan amounts reduced proportionally based on their enrollment status, following a reduction schedule set by the Secretary of Education
- All students will have a lifetime borrowing cap of $257,500 for federal student loans (excluding Parent PLUS loans)
IMPACTS: These shifts may force students to rely on private loans (with interest rates upwards of 16%) or self-financing, especially for higher-cost programs like the DNP in Nurse Anesthesia and the DBA in Business Administration, and may result in less access and opportunity for people to pursue and attain a graduate education.
3. Repayment and Forgiveness Overhaul 
- Replaces all current income-driven repayment plans with a Standard Plan and a Repayment Assistance Plan (RAP)
- The Standard Plan has fixed monthly payments and terms, ranging from 10 to 25 years, depending on the loan amount.
- The Repayment Assistance Plan establishes a new income-driven repayment option designed to adjust monthly payments based on a borrower’s income and offers forgiveness of the debt after a set amount of qualifying payments.
IMPACTS: These changes may result in increased lifetime repayment costs.
4. Creates Accountability Measures for Institutions
- Graduate programs will lose eligibility for the Direct Loan Program if, for 2 out of 3 years, their former students earn less than the median bachelor’s degree recipient in the same field and state.
IMPACTS: This change may require significant institutional effort to manage program costs based on expected earnings.
