Trump Administration's New Student Loan Policies to Raise Costs, Limit Access, and Impact Graduate Programs

The Trump administration has introduced wide-ranging new policies under the 'One Big Beautiful Bill' that will significantly alter federal student loan programs. These changes include new loan limits for graduate degrees, which are expected to create financing gaps for a substantial percentage of master's and professional degree borrowers, potentially forcing them into more expensive private loans or cutting off access entirely. Additionally, the Department of Education plans to cut off access to federal student loans for degree programs that do not demonstrate sufficient post-graduation earnings, impacting fields such as social work, arts, and religious studies. Higher education associations have released a survey indicating that graduate and professional schools are in a 'wait-and-see' phase as they navigate these changes, with some institutions exploring new partnerships with private lenders or increasing institutional aid to mitigate the financial burden on students.