Changes to Graduate Student Loans

Graduate Opportunity and Affordable Loans Act This 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.

1. This bill changes how much graduate and professional students can borrow in loans. 2. Starting July 1, 2025, graduate students can borrow up to $20,500 a year. 3. Professional students can borrow up to $40,500 each academic year. 4. The total loan limit for graduate students will be $65,000, and for professional students, it will be $130,000. 5. The bill also ends Federal Direct PLUS Loans for graduate and professional students.

Graduate and professional students seeking federal loans for their education.