New federal loans rules

[DynamicDidactic]

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Hello all,
Not sure if this has come up on the forum but it seems to be the buzz in my professional circles. The BBB has changed burrowing rules starting in July 2026. Here is the google AI summary:

For graduate and professional students

• Grad PLUS loans eliminated: Grad PLUS loans will be phased out for new borrowers beginning July 1, 2026.
• New annual borrowing limits:
  • Graduate students: $20,500 per year.
  • Professional students (e.g., law, medical): $50,000 per year.
  • New lifetime borrowing limits:
    • Graduate students: $100,000 (does not include undergraduate loans).
    • Professional students: $200,000 (does not include undergraduate loans)

License-eligible and doctoral psych students have been classified as professional. Someone from Alliant was apparently on the committee that helped make the rules.

This is a mixed bag but I am not sure this helps for-profit (or similar) universities or will potentially lead to more use of private loans, which would be even worse for those students.

An additional side note, new student visas will be capped at 4 years which would likely restrict anyone coming to the US for a doctoral psych degree.

 

[AcronymAllergy]

I suspect it'll lead to more private loans, which was probably a part of the plan all along. Maybe it results in for-profit programs capping tuition and fees at "only" $50k/year so that they can say their costs are in line with federal loan borrowing limits (never mind actual living expenses).

 

[BuckeyeLove]

So effectively, all future physicians and/or attorneys are going to be slaves to legal usury from here on out. Or we just end up with a mass shortage of professionals, which will do wonders after all the current docs retire.

 

[R. Matey]

I suspect it'll lead to more private loans, which was probably a part of the plan all along. Maybe it results in for-profit programs capping tuition and fees at "only" $50k/year so that they can say their costs are in line with federal loan borrowing limits (never mind actual living expenses).

Yeah, I read this yesterday and thought the exact same thing. We can expect that FPPS will dance right at that line with a toe or two over that can be "mitigated" by private loans.

 

[quickpsych]

I suspect it'll lead to more private loans, which was probably a part of the plan all along. Maybe it results in for-profit programs capping tuition and fees at "only" $50k/year so that they can say their costs are in line with federal loan borrowing limits (never mind actual living expenses).

So effectively, all future physicians and/or attorneys are going to be slaves to legal usury from here on out. Or we just end up with a mass shortage of professionals, which will do wonders after all the current docs retire.

Perhaps features not bugs of this administration.

 

[MAClinician]

Lots of degrees have been classified out of professional degrees such as nursing, PT, OT, SW and some others I think. Interesting how this will affect the whole healthcare system.

 

[allantois]

I think a reasonable limit would be to cap loans at 2x average yearly salary of the profession.. of course that would be too complicated

 

[Spydra]

Well maybe with the APA pushing the licensed Master's option maybe we'll see more students shift to that instead of the for-profit options. Then if they truly don't want to do the doctoral level work they can just stick with the Master's but if they do want the doctorate they can pursue that with their remaining federal loan money.

 

[Mr.Smile12]

We have posted an article about the Student Loan situation earlier this year, and one about it's impact on psychology admissions is under review.

Many Fear Federal Loan Caps Will Deter Aspiring Doctors and Worsen MD Shortage | Student Doctor Network | SDN

Medical educators and health professionals warn that new federal student loan caps in President Donald Trump’s tax cut law could make it more expensive...

www.studentdoctor.net

It is definitely a hot topic in predental.