Education Department sets cap on graduate school loans

The Education Department announced a final rule Thursday that caps the maximum amount students can take out in loans for graduate school, which will go into effect July 1.The student loan caps are part of the Trump administration’s efforts to reduce the costs of post secondary education and streamline the student loan repayment process. 
The department said the caps are intended to put pressure on schools and universities to lower the costs of education and tuition.
“The Trump Administration is focused on putting students and taxpayers first, which is why we are implementing durable policies to make higher education more affordable,” Under Secretary of Education Nicholas Kent said in a statement. “This final rule will help ensure students can access higher education without racking up excessive loan debt, offer repayment options that better serve borrowers, and force institutions to reduce costs.” 
Typical graduate student loans will now be capped at $20,500 annually and $100,000 in total, while loans for professional students will be capped at $50,000 annually and $200,000 in total, according to a federal register notice.
The professional category applies to degree programs in pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology and clinical psychology. 
The new rule also limits borrowers under the Parent PLUS loan plan to a $20,000 annual cap and an aggregate cap of $65,000 per dependent.
The loan caps will only apply to loans taken out after July 1.
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage. 

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