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Education Dept Ends Grad PLUS Loans, Caps Graduate Debt

5/1/2026

Summary

Story summary

The Education Department will end Grad PLUS loan program to pressure colleges to stop raising tuition.
It announced graduate loan caps and income-based repayment plans that take effect in July.
Under Secretary Nicholas Kent said tuition has risen over 900% since the 1980s, prompting schools to raise prices.
The department said about 75% of borrowers are behind, 4 million in late-stage delinquency, and that collections will resume in 2025 after a pause.

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Story summary

The Education Department will end Grad PLUS loan program to pressure colleges to stop raising tuition.
It announced graduate loan caps and income-based repayment plans that take effect in July.
Under Secretary Nicholas Kent said tuition has risen over 900% since the 1980s, prompting schools to raise prices.
The department said about 75% of borrowers are behind, 4 million in late-stage delinquency, and that collections will resume in 2025 after a pause.