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US Caps Graduate, Parent Loans, Raises Dropout Fears

5/26/2026

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Story summary
  • The United States enacted the One Big Beautiful Bill Act on July 1 2026, lowering loan caps for graduate students and parents.
  • Graduate loans are capped at $20,500 per year ($100,000 lifetime), professional loans at $50,000 per year, and Parent PLUS loans at $20,000 annually ($65,000 lifetime).
  • About 28% of graduate borrowers exceed the caps by an average of $21,700, prompting experts to warn of enrollment shifts to lower-cost colleges or dropouts.