Feds cap graduate student loans based on earnings potential in bid to lower spiraling costs

The Education Department announced new caps on federal graduate loans, effective July 1, as part of the Trump administration’s effort to reduce postsecondary costs and streamline repayment. The final rule narrows the definition of professional degrees eligible for higher limits and sets annual and lifetime caps for graduate loans, with separate limits for professional programs and specific parent loan provisions. The Washington Times frames the move as pressuring universities to lower costs by tying borrowing to estimated earnings, while CNBC notes the regulation keeps a narrow scope for high-borrowing degrees. The Hill articles reiterate the July 1 implementation and the administration’s stated aim of cost reduction.