Graduate Student Loan Program Eliminated in Trump's Education Reform
The Graduate PLUS Loan Program has been discontinued as part of a major reform of the U.S. student loan system under President Donald Trump's One Big Beautiful Bill Act, announced on 6 November 2025.
Key Changes to Postgraduate Borrowing
- The Graduate PLUS Loan, which allowed borrowing up to the full cost of attendance, will end on 1 July 2026.
- New borrowing limits will cap federal loans for postgraduate and professional students.
- Repayment options are reduced from seven to two: the Standard Repayment Plan and a new Repayment Assistance Plan (RAP) linked to income.
- Public Service Loan Forgiveness eligibility rules will become stricter, excluding some employers.
Concerns from Education Experts
"This is one of the most significant shifts in federal higher-education funding in decades," experts say.
Critics warn the changes may prevent many middle-class students from affording graduate school, widening the gap between those who can self-fund advanced degrees and those who cannot.
Department of Education Statement
"The Graduate PLUS Loan Programme will be discontinued beginning 1 July 2026, with new borrowing caps introduced to limit federal student debt," the Department confirmed.
Summary
This reform aims to simplify repayment but may also create barriers for middle-class students seeking postgraduate education.
Author’s summary: The elimination of the Graduate PLUS Loan under Trump's education overhaul simplifies loan repayments but risks excluding many middle-class students from pursuing postgraduate degrees.
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