Education Department caps student loans for grad school at $20,500 per year
The Department of Education announced a new rule capping federal student loan amounts for graduate students at $20,500 per year with a $100,000 lifetime limit, while those in designated professional programs can borrow up to $50,000 annually with a $200,000 cap. The policy, part of the Working Families Tax Cuts Act signed in July 2025, aims to reduce long-term debt and simplify repayment. It also introduces borrowing limits on Parent PLUS loans and is projected to reduce student debt and taxpayer costs significantly.
Opening excerpt (first ~120 words) tap to expand
The Department of Education announced Thursday that it will cap federal student loans for graduate programs, a change officials say is aimed at lowering college costs and reducing long-term debt burdens. Under the new framework, graduate students will be limited to borrowing $20,500 per year, up to a lifetime cap of $100,000. Recommended Stories Education’s purpose isn’t just about getting a good job The truth about Arizona’s school choice program fraud Los Angeles schools take the lead in issuing classroom screen time limits Students enrolled in designated “professional” programs, including law, medicine, dentistry, and veterinary medicine, will be allowed to borrow up to $50,000 annually, with a $200,000 lifetime limit.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Washington Examiner.
Discussion
0 commentsMore from Washington Examiner
