Graduate Opportunity and Affordable Loans ActThis bill limits federal student loan borrowing for graduate and professional students.Specifically, the bill terminates the ability of a graduate or professional student to receive a Direct PLUS Loan. Institutions of higher education (IHEs) must notify their prospective and enrolled graduate and professional students that Direct PLUS Loans terminate on June 30, 2025.Additionally, the bill establishes the aggregate loan limit for Direct Unsubsidized Loans as $65,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $130,000 for a professional student (in addition to the amount borrowed for undergraduate education).The bill allows IHEs to set lower loan limits.
In addition to adjusting borrowing limits, SB308 also proposes the termination of Federal Direct PLUS Loans for graduate students commencing June 30, 2025. This marks a significant shift in funding opportunities available to graduate students, as the PLUS loan program has provided an important financial resource. Once this program is phased out, graduates may find themselves with fewer funding options, potentially impacting their ability to finance advanced degrees, especially in fields that often require significant financial investment.
SB308, known as the Graduate Opportunity and Affordable Loans Act, introduces significant reforms to the federal loan system for graduate and professional students. Key amendments include modifications to the annual and aggregate limits on Federal Direct Unsubsidized Stafford Loans. Under the bill, beginning July 1, 2025, graduate students will be limited to borrowing $20,500 annually, while professional students will be able to borrow up to $40,500 annually. These changes aim to streamline student borrowing and offer clearer expectations to borrowers as they navigate their education financing options.
Debate surrounding SB308 centers on concerns regarding student debt and support systems for graduate education. Proponents argue that the bill encourages responsible borrowing by limiting debt accumulation for graduates, presumably preventing overwhelming financial burdens post-graduation. Conversely, critics express worry that the elimination of PLUS Loans will disproportionately affect students pursuing degrees in high-cost fields such as medicine or law. The question remains whether the changes proposed will ultimately benefit or hinder students' access to higher education in the long term.