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AccessLex Institute Alarmed About Harmful Impact of Reduced Federal Loan Limits for Graduate and Professional Students [1]

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Date: 2025-08

AccessLex Institute® is deeply concerned with the provisions contained in the reconciliation package recently passed by Congress, (known as the One Big Beautiful Bill Act) that will have a negative impact on the ability of aspiring students to access and complete graduate and professional education. Most notably, the bill substantially reduces the amount of federal student loan funding available to graduate and professional students. This provision cuts against the very heart of the Higher Education Act (HEA) of 1965 by reducing access rather than expanding it, particularly for historically underrepresented and economically disadvantaged students.

Federal graduate lending provides a critical financing option for students who seek an advanced degree, regardless of background or station. Eliminating the Grad PLUS Loan Program and reducing the amount of federal loans that students may borrow annually to $20,500 (for graduate degree programs) and $50,000 (for professional degree programs), when many programs cost significantly more, will force most students to seek financing from private sector lenders. Relying on private lenders, which have differing incentives, underwriting, and profit goals than the federal government, would mean returning to an environment where many low- and middle-income individuals will be unable to obtain a student loan under reasonable terms or even obtain a loan at all.

Further, the bill fails to account for the persistent and accelerating rise in the cost of higher education, as well as the cost of living. Tuition, food, housing, and other essential expenses have steadily increased over the past decades, driven in part by inflation and broader economic pressures. By setting static loan caps without any mechanism for adjustment, the legislation effectively ignores these economic realities. A more responsible and equitable approach would be to index loan limits to inflation, cost of living, and tuition trends, ensuring that students are not priced out of higher education simply because federal policy fails to keep pace with rising costs.

At a time when the demand for highly educated professionals is growing across nearly every sector, this dramatic reduction in federal support for graduate and professional students is both shortsighted and counterproductive. Our nation’s long-term economic vitality and global competitiveness depend on a well-educated workforce equipped to meet complex challenges. Limiting access to affordable graduate and professional education undermines this goal and disproportionately affects students from underrepresented and economically disadvantaged backgrounds. Now more than ever, we must invest in — not retreat from — policies that expand opportunity and strengthen our economy.

See our full set of Higher Education Act policy recommendations.

About AccessLex Institute®:

AccessLex Institute is a nonprofit organization committed to helping talented, purpose-driven students find their path from aspiring lawyer to fulfilled professional. In partnership with its nearly 200 ABA-approved member law schools, improving access and positively influencing legal education have been at the heart of the Company's mission since 1983. The AccessLex Center for Legal Education Excellence® advocates for policies that make legal education work better for students and society alike and conducts research on the most critical issues facing legal education today. The AccessLex Center for Education and Financial Capability® offers on-campus and online financial education programming and resources to help students confidently manage their finances on their way to achieving personal and professional success. AccessLex Institute is located in West Chester, PA, with a team of accredited financial education counselors based throughout the United States. Learn more at AccessLex.org.

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[1] Url: https://www.accesslex.org/news/accesslex-alarmed-harmful-impact-reduced-federal-loan-limits-graduate-professional-students

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