Student Loan Caps!

[DexterMorganSK]

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I am sure most of you have heard about this, but in case you haven't. The reconciliation bill will limit how much you can borrow as a Podiatry student—something to consider when thinking about applying to a Pod program.

"The bill places new caps on the amount of federal student loans that both parents and students can take out, limiting it to $50,000 in total undergraduate loans that a student can take out and $100,000 or $150,000 for graduate and professional programs, based on the type of program. Parents are also limited to only taking out $50,000 total in federal loans to pay for their children’s education, which applies even if parents are taking out loans for multiple children. Students and their parents cannot borrow more than $200,000 in total—including both undergraduate and graduate loans—under the bill, with those limits set to take effect in July 2026. “

Student Loans And Trump's Big Beautiful Bill: Here’s What To Know

The bill would overhaul repayment plans and could require borrowers to pay more each month.

www.forbes.com

The reconciliation bill cleared the House. Here’s how it would change higher ed.

Critics worry that the spending package, now headed to the Senate, would have a “historic and negative impact” on college access.

www.highereddive.com

 

[heybrother]

I am sure most of you have heard about this, but in case you haven't. The reconciliation bill will limit how much you can borrow as a Podiatry student—something to consider when thinking about applying to a Pod program.

"The bill places new caps on the amount of federal student loans that both parents and students can take out, limiting it to $50,000 in total undergraduate loans that a student can take out and $100,000 or $150,000 for graduate and professional programs, based on the type of program. Parents are also limited to only taking out $50,000 total in federal loans to pay for their children’s education, which applies even if parents are taking out loans for multiple children. Students and their parents cannot borrow more than $200,000 in total—including both undergraduate and graduate loans—under the bill, with those limits set to take effect in July 2026. “

Student Loans And Trump's Big Beautiful Bill: Here’s What To Know

The bill would overhaul repayment plans and could require borrowers to pay more each month.

www.forbes.com

The reconciliation bill cleared the House. Here’s how it would change higher ed.

Critics worry that the spending package, now headed to the Senate, would have a “historic and negative impact” on college access.

www.highereddive.com

(1) I figured if I looked around the forum I'd find more threads on this, but there's not a lot of discussions. ie. New Tax Bill Would Cut Availability of Medical School Loans

(2) Bogleheads, a financial forum advocating index fund investments, had a rule not to post about pending legislation until it was completely resolved. That's obviously somewhat controlling, but there's a measure of sense in not getting worked up over legislation that may not actually pass. My suspicion is there are people on here who would believe they need to advocate against this bill.

(3) Were this legislation to clear the senate in its current form it would be very problematic for all manner of graduate schools, but especially podiatry.

(4) Its worth remembering that administrations and congressional terms aren't forever, but sometimes even opposing administrations keep things.

(5) The finances of a podiatry degree would likely be dramatically worse if a substantial portion of tuition/cost of living was financed under the terms of a private student lender.

(6) I say this semi-often, but I'm somewhat constantly plagued by the feeling in life that "the deal always gets worse" and the deal I got will be substantially better than what people coming after me receive.

 

[Mr.Smile12]

We have posted articles under Topics, but Predental has been discussing this topic.

A

Thread 'cap on federal student loans'

May 19, 2025

Administration is planning on capping the loans on grad loans...this will have a huge effect on how you will borrow, the rate on the loans etc etc because it will have to be more private. The number being thrown around is 150k. This is great because it forces schools to come back down to reality regarding tuition and applauded by many professionals. Pay close attention to this stuff guys/gals!

• askadds
• Replies: 20
• Forum: Pre-Dental

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[heybrother]

We have posted articles under Topics, but Predental has been discussing this topic.

A

Thread 'cap on federal student loans'

May 19, 2025

Administration is planning on capping the loans on grad loans...this will have a huge effect on how you will borrow, the rate on the loans etc etc because it will have to be more private. The number being thrown around is 150k. This is great because it forces schools to come back down to reality regarding tuition and applauded by many professionals. Pay close attention to this stuff guys/gals!

• askadds
• Replies: 20
• Forum: Pre-Dental

• 
• 
• 

Its an interesting topic to me.

The schools say they won't reduce tuition. That there's plenty of supply and people with means to pay.

Its obviously though a "new" dynamic in the sense that the schools likely haven't had to substantially rely on private lenders since about I guess 2010 when the FFEL was suspended and loans were transitioned from private lenders backed by the government to the system that has existed for the last 15 years.

I sometimes wonder if Trump/the republicans actually believe this will reduce tuition or are they simply attempting to get the government out of being the primary lender for graduate school ie. reduce the balance sheet, decrease the number of loans that can be forgiven through federal pathways.

I looked on Reddit to see people discussing it and it was humorous seeing how variable discussions were. A forum for PhDs I thought were much more circumspect in their language, while other forums readily suggested that the underlying goal is racism. I personally find it hard to believe that a system that has allowed podiatry schools costs to double since I went to school is truly a favorable system for everyone.

 

[Feli]

There has been the most talk of this in the dental forums (from what I ran across). They have many private schools that are insanely expensive.
General consensus was that students will just acquire private loans for the rest... we'll see if the bill passes in present form and how it pans out.
I'm not so sure banks will take that risk? Likely on med (MD/DO), less so dental, even less for pharma... almost certainly not podiatry or chiro with notoriuosly low ROI.

Assuming this $200k aggregate limit sticks, that doesn't cover 4yrs at any podiatry school when you factor in living costs (perhaps URGV for TX residents... still likely over with clerk travel). That is not to mention that many pod schools are famous for stringing students who fail a class or two along for "5 year program" or even 6+ years. The highest cost schools will be the first to feel the heat (AZ, Western, Scholl for pod schools).

....Here's to hoping the podiatry schools wake up and quit adding seats and raising tuitions left and right.
Legislature like this is long overdue. Ever since Clinton was in office, almost anyone can go to college... but college$ are the one$ laughing.
It shouldn't take things like this to stop greed of charging everything a student can borrow - and then some.

I'm luke warm at best on the ROI of my own podiatry education debt (~200k tuition + living, no fellowship, lower interest rates).
It's almost insane what avg pod students do today (300k-400k+ loans, high interest, fellowship year now common for very few decent jobs).

A contracture in podiatry with less grads, close down some of the MANY questionable residencies, lower tuitions, improve demand and pay for grads, get rid of many needless "leaders" and fluffers and mega/VC groups riding the gravy train of high podiatry tuitions would be amazing. We'll see.