Are you currently considering graduate school?
The Trump Administration just passed the Big Beautiful Bill; here is how it may affect your future and wallet.
Starting July 1, 2026, the Big Beautiful bill will place a cap on loans you can take out for graduate school. The Bill will set an annual limit of $50,000 per year and a lifetime cap of $200,000. This sounds like a lot; however, law school tuition averages $52,000 a year, and medical school averages $60,000. This also does not include living expenses, often taken out of loans. Meaning schools will either have to lower tuition, or students will be expected to take out private loans.
The “Big Bill” also eliminates Grad PLUS loans. Grad PLUS Loans allow graduate students to borrow the full cost of attendance minus any financial aid the student may receive.
Repayment option will also be reshaped under the “Big Bill.” There are two options for students. One is a standard repayment plan with fixed monthly payments. The second is an income-based plan with variable payments based on the student’s income.
With these changes, an increase in students taking out private loans is expected as well as a drop-off in students applying for graduate school. Unless institutions decide to lower the cost of attendance.