Dalea Tran, a 19-year-old student at the University of California, San Diego, has long aspired to attend law school. However, the financial pathways to realize that dream have grown more complicated following significant changes to the student loan landscape in the United States. President Donald Trump recently signed a major domestic policy bill that removes Grad PLUS loans, a crucial funding source for nearly two million graduates pursuing professional degrees in law and medicine since 2006.
Starting July 1, 2026, new borrowers will no longer have access to Grad PLUS loans, which previously covered full tuition costs for graduate programs. The new legislation imposes annual borrowing caps of $50,000 and a total cap of $200,000 for federal direct loans for those pursuing degrees in these fields, while also limiting repayment options after graduation. This could significantly restrict opportunities for students like Tran, potentially forcing them to reconsider their career ambitions.
Tran expressed her concerns about the tight timeline she faces to pursue law school while still managing the implications of these changes. The reform is the result of years of conservative initiatives aimed at tackling rising education costs and crippling student debt. Senator Bill Cassidy, chairman of the Senate education committee, emphasized that limiting federal loan availability is intended to prevent students from overborrowing and to push down increasing college costs.
As law school tuition continues to soar—averaging nearly $60,000 annually at private institutions and about $32,000 for in-state residents at public schools—the implications of the new borrowing limits may be profound. Austen Parrish, dean of the University of California, Irvine School of Law, anticipates that students may be forced to choose between prestigious programs and those that are more financially manageable.
Medical students are experiencing similar anxieties. Julianna Lindquist, a second-year medical student, is relieved she started her studies before these changes take effect, as she has utilized Grad PLUS loans extensively to finance her education. With federal support waning, it remains uncertain how future medical students will secure funding to complete their training.
As institutions adjust to these new financial realities, educators and policymakers are left pondering the long-term ramifications for those aspiring to enter the legal and medical professions. There is hope that these reforms might finally address the student debt crisis and encourage a more affordable education system in the long run.