Source: Forbes
New federal student loan caps announced by the U.S. Department of Education will significantly limit how much graduate and professional students can borrow, potentially making it harder to afford advanced degrees. Starting July 1, graduate students will be capped at $20,500 annually and $100,000 total, while professional students (such as those in medical or Veterinary programs) will face a $50,000 annual and $200,000 total limit. Parent PLUS loans will also be restricted, and the popular Grad PLUS loan program will be eliminated entirely.
Experts warn these changes could discourage enrollment or push students toward more affordable programs. Many professional degrees already exceed the new caps, leaving funding gaps. Students may need to turn to private loans, which often have higher interest rates and fewer protections. While current borrowers may be exempt under certain conditions, future students will need to plan carefully, factoring financing into their decisions earlier to manage costs and avoid borrowing shortfalls.
Read the full story HERE: https://www.forbes.com/advisor/loans/federal-student-loan-caps-graduate-school-lmandp5/